Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the NYSE Arca Options Fee Schedule and the NYSE Arca Equities Schedule of Fees and Charges for Exchange Services To Eliminate Certain Services That Are No Longer Utilized by Users and To Remove Obsolete Text, 36981-36984 [2016-13472]
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Federal Register / Vol. 81, No. 110 / Wednesday, June 8, 2016 / Notices
derivatives agreements, contracts, and
transactions within the meaning of
Section 17A(b)(3)(F) 9 of the Act.
The Commission also believes that the
proposed changes will satisfy the
applicable requirements of Rule 17Ad–
22.10 In particular, the Stress Testing
Framework contains stress testing
practices designed to ensure that ICE
Clear Credit maintains sufficient
financial resources to withstand a
default by the participant family to
which it has the largest exposure in
extreme but plausible market
conditions, and that as a registered
clearing agency acting as a central
counterparty for security-based swaps,
ICC maintains additional financial
resources sufficient to withstand, at a
minimum, a default by the two
participant families to which it has the
largest exposures in extreme but
plausible market conditions, consistent
with the requirements of Rule 17Ad–
22(b)(3).11
IV. Conclusion
On the basis of the foregoing, the
Commission finds that the proposal is
consistent with the requirements of the
Act and in particular with the
requirements of Section 17A of the
Act 12 and the rules and regulations
thereunder.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,13 that the
proposed rule change (File No. SR–ICC–
2016–005) as modified by Amendment
No. 1, be, and hereby is, approved.14
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Brent J. Fields,
Secretary.
[FR Doc. 2016–13477 Filed 6–7–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–77976; File No. SR–NYSE–
2016–11]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Designation of Longer Period for
Commission Action on a Proposed
Rule Change, as Modified by
Amendment No. 1, To Establish
Certain End User Fees, Amend the
Definition of Affiliate, and Amend the
Co-Location Section of the Price List
To Reflect the Changes
June 2, 2016.
On April 4, 2016, New York Stock
Exchange LLC (‘‘NYSE’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
establish fees relating to certain end
users, amend the definition of Affiliate,
and amend the co-location section of the
Price List to reflect the changes. The
Commission published the proposed
rule change for comment in the Federal
Register on April 22, 2016.3 On April
29, 2016, the Exchange filed
Amendment No. 1 to the proposed rule
change.4 The Commission received two
comment letters on the proposed rule
change.5
Section 19(b)(2) of the Act 6 provides
that, within 45 days of the publication
of the notice of the filing of a proposed
rule change, or within such longer
period up to 90 days as the Commission
may designate if it finds such longer
period to be appropriate and publishes
its reasons for so finding or as to which
the self-regulatory organization
consents, the Commission shall approve
the proposed rule change, disapprove
the proposed rule change, or institute
proceedings to determine whether the
proposed rule change should be
disapproved. The Commission is
extending this 45-day time period.
The Commission finds that it is
appropriate to designate a longer period
within which to take action on the
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 34–
77642 (April 18, 2016), 81 FR 23786 (‘‘Notice’’).
4 Amendment No. 1 made technical changes
relating to the General Notes numbering and
references in the Co-location section of the Price
List.
5 See Letter from Michael J. Friedman, General
Counsel and CCO, Trillium to Brent J. Fields,
Secretary, Commission, dated May 13, 2016; see
also Letter from Eero Pikat to the Commission,
dated May 13, 2016.
6 15 U.S.C. 78s(b)(2).
2 17
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9 Id.
10 17
CFR 240.17Ad–22.
CFR 240.17Ad–22(b)(3).
12 15 U.S.C. 78q–1.
13 15 U.S.C. 78s(b)(2).
14 In approving the proposed rule change, the
Commission considered the proposal’s impact on
efficiency, competition and capital formation. 15
U.S.C. 78c(f).
15 17 CFR 200.30–3(a)(12).
11 17
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36981
proposed rule change so that it has
sufficient time to consider the proposed
rule change. Accordingly, the
Commission, pursuant to Section
19(b)(2) of the Act,7 designates July 21,
2016, as the date by which the
Commission should approve,
disapprove, or institute proceedings to
determine whether to disapprove the
proposed rule change (File No. SR–
NYSE–2016–11), as modified by
Amendment No. 1.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Brent J. Fields,
Secretary.
[FR Doc. 2016–13474 Filed 6–7–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–77974; File No. SR–
NYSEArca–2016–77]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending the NYSE Arca
Options Fee Schedule and the NYSE
Arca Equities Schedule of Fees and
Charges for Exchange Services To
Eliminate Certain Services That Are No
Longer Utilized by Users and To
Remove Obsolete Text
June 2, 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 23,
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 the Substance
of the Proposed Rule Change
The Exchange proposes amend the
NYSE Arca Options Fee Schedule (the
‘‘Options Fee Schedule’’) and, through
its wholly owned subsidiary NYSE Arca
Equities, Inc. (‘‘NYSE Arca Equities’’),
the NYSE Arca Equities Schedule of
7 Id.
8 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.
1 15
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Federal Register / Vol. 81, No. 110 / Wednesday, June 8, 2016 / Notices
Fees and Charges for Exchange Services
(the ‘‘Equities Fee Schedule’’ and,
together with the Options Fee Schedule,
the ‘‘Fee Schedules’’) to eliminate
certain services that are no longer
utilized by Users and to remove obsolete
text. 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
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to change the
Fee Schedules for the co-location 4
services offered by the Exchange to
eliminate certain services that are no
longer utilized by Users 5 and to remove
obsolete text.
mstockstill on DSK3G9T082PROD with NOTICES
LCN CSP Access
The ‘‘Liquidity Center Network’’
(‘‘LCN’’) is a local area network
available in the data center. A User is
currently able to act as a content service
provider (a ‘‘CSP’’ User) and deliver
services to another User in the data
4 The Exchange initially filed rule changes
relating to its co-location services with the
Securities and Exchange Commission
(‘‘Commission’’) in 2010. See Securities Exchange
Act Release No. 63275 (November 8, 2010), 75 FR
70048 (November 16, 2010) (SR–NYSEArca–2010–
100). The Exchange operates a data center in
Mahwah, New Jersey (the ‘‘data center’’) from
which it provides co-location services to Users.
5 For purposes of the Exchange’s co-location
services, a ‘‘User’’ means any market participant
that requests to receive co-location services directly
from the Exchange. See Securities Exchange Act
Release No. 76010 (September 29, 2015), 80 FR
60197 (October 5, 2015) (SR–NYSEArca–2015–82).
As specified in the Fee Schedules, a User that
incurs co-location fees for a particular co-location
service pursuant thereto would not be subject to colocation fees for the same co-location service
charged by the Exchange’s affiliates New York
Stock Exchange LLC and NYSE MKT LLC. See
Securities Exchange Act Release No. 70173 (August
13, 2013), 78 FR 50459 (August 19, 2013) (SR–
NYSEArca–2013–80).
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center (a ‘‘Subscribing’’ User).6 These
services could include, for example,
order routing/brokerage services and/or
data delivery services.
Currently, the Exchange offers CSP
Users specific, dedicated 10 gigabyte
(‘‘Gb’’) LCN connections (‘‘LCN CSP’’)
that would allow CSP Users to send data
to, and communicate with, all their
properly authorized Subscribing Users
at once. In such a case, a Subscribing
User would receive the services via its
standard LCN connection and would be
charged an initial and monthly fee
(‘‘CSP Subscriber fee’’) reflecting the
benefit of receiving services from the
CSP User in this manner.7
However, Users no longer utilize the
LCN CSP connection offering.
Accordingly, the Exchange proposes to
discontinue LCN CSP connections, and
to remove references to LCN CSP access
and CSP Subscriber fees from the Fee
Schedules. A CSP User would remain
able to deliver services to a Subscribing
User via direct cross connect, as is
currently the case and as was the case
prior to the introduction of the LCN CSP
connection offering.
Bundled Network Access
A User is currently able to select from
two ‘‘bundled’’ connectivity options
when connecting to the data center:
‘‘Bundled Network Access Option 1’’
and ‘‘Bundled Network Access Option
2’’.8 The Exchange proposes to
discontinue Bundled Network Access
Option 2, as Users no longer utilize it,
and to remove references to related
pricing from the Fee Schedules. In
addition, the Exchange proposes to
rename ‘‘Bundled Network Access
Option 1’’ as ‘‘Bundled Network
Access,’’ as it would be the sole
remaining option.
IP Network Access
The internet protocol (‘‘IP’’) network
is a local area network available in the
data center.9 IP network access is
offered in 1, 10 and 40 Gb capacities.
6 See Securities Exchange Act Release No. 67667
(August 15, 2012), 77 FR 50743 (August 22, 2012)
(SR–NYSEArca–2012–63).
7 Id. Previously, the Exchange also offered a one
Gb LCN CSP connection, but it was discontinued
as it was no longer utilized by Users. See Securities
Exchange Act Release No. 72720 (July 30, 2014), 79
FR 45577 (August 5, 2014) (SR–NYSEArca–2014–
81).
8 Previously, the Exchange offered other
‘‘bundled’’ connectivity options, but they were
discontinued as they were no longer utilized by
Users. See id., at 45578.
9 See Securities Exchange Act Release No. 74219
(February 6, 2015), 80 FR 7899 (February 12, 2015)
(SR–NYSEArca–2015–03) (notice of filing and
immediate effectiveness of proposed rule change to
include IP network connections and fiber cross
connects between a User’s cabinet and a non-User’s
equipment).
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The Exchange proposes to delete
statements in the Fee Schedules that the
40 Gb circuit of the IP network is
expected to be available no later than
April 15, 2016,10 as such statements are
obsolete. This proposed change would
have no impact on pricing.
General
As is the case with all Exchange colocation arrangements, (i) neither a User
nor any of the User’s customers would
be permitted to submit orders directly to
the Exchange unless such User or
customer is a member organization, a
Sponsored Participant or an agent
thereof (e.g., a service bureau providing
order entry services); (ii) use of the colocation services proposed herein would
be completely voluntary and available
to all Users on a non-discriminatory
basis; 11 and (iii) a User would only
incur one charge for the particular colocation service described herein,
regardless of whether the User connects
only to the Exchange or to the Exchange
and one or both of its affiliates.12
The proposed change is not otherwise
intended to address any other issues
relating to co-location services and/or
related fees, and the Exchange is not
aware of any problems that Users would
have in complying with the proposed
change.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
section 6(b) of the Act,13 in general, and
section 6(b)(4) of the Act,14 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,
10 See Securities Exchange Act Release No. 76372
(November 5, 2015), 80 FR 70039 (November 12,
2015) (SR–NYSEArca–2015–105) (notice of filing
and immediate effectiveness of proposed rule
change to include IP 40 Gb network connections).
11 As is currently the case, Users that receive colocation services from the Exchange will not receive
any means of access to the Exchange’s trading and
execution systems that is separate from, or superior
to, that of other Users. In this regard, all orders sent
to the Exchange enter the Exchange’s trading and
execution systems through the same order gateway,
regardless of whether the sender is co-located in the
data center or not. In addition, co-located Users do
not receive any market data or data service product
that is not available to all Users, although Users that
receive co-location services normally would expect
reduced latencies in sending orders to, and
receiving market data from, the Exchange.
12 See SR–NYSEArca–2013–80, supra note 5, at
50459. The Exchange’s affiliates have also
submitted substantially the same proposed rule
change to propose the changes described herein.
See SR–NYSE–2016–39 and SR–NYSEMKT–2016–
57.
13 15 U.S.C. 78f(b).
14 15 U.S.C. 78f(b)(4).
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08JNN1
mstockstill on DSK3G9T082PROD with NOTICES
Federal Register / Vol. 81, No. 110 / Wednesday, June 8, 2016 / Notices
issuers, brokers or dealers. The
Exchange also believes that the
proposed rule change furthers the
objectives of section 6(b)(5) of the Act,15
in particular, because it is 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 mechanisms of, a free
and open market and a national market
system and, in general, to protect
investors and the public interest and
because it is not designed to permit
unfair discrimination between
customers, issuers, brokers, or dealers.
The Exchange believes that the
proposed change is reasonable,
equitable and not unfairly
discriminatory because discontinuing
the LCN CSP and Bundled Network
Access Option 2 in the data center
would permit the Exchange to
streamline the offerings available to
Users in the data center by eliminating
services that Users no longer utilize and,
by removing references to related
pricing from the Fee Schedules, make
the Fee Schedules easier to read,
understand and administer. The
Exchange believes that, because no
Users utilize such services, it would be
equitable and not unfairly
discriminatory to discontinue the
services.
The Exchange believes that it is
reasonable to discontinue the services in
the data center that are no longer
utilized by Users and to remove
references to related pricing from the
Fee Schedules because the Exchange
offers the services described herein as a
convenience to Users, but in doing so
incurs certain costs, including costs
related to the data center facility,
hardware and equipment and costs
related to personnel required for initial
installation and ongoing monitoring,
support and maintenance of such
services. Removing services that Users
do not utilize from the co-location
offerings would contribute to a more
efficient process for managing the
various services offered to Users, which
would improve the utilization of the
data center resources, both with respect
to personnel and infrastructure,
including hardware and software.
The Exchange believes that
eliminating references in the Fee
Schedules that state that the 40 Gb
circuit of the IP network is expected to
be available no later than April 15,
2016, is reasonable, equitable and not
unfairly discriminatory because these
references are obsolete and no longer
have an impact on pricing. The
proposed change would result in the
removal of obsolete text from the Fee
Schedules and therefore add greater
clarity to the Fee Schedules regarding
the services offered and the applicable
fees.
For the reasons above, the proposed
changes do not unfairly discriminate
between or among market participants
that are otherwise capable of satisfying
any applicable co-location fees,
requirements, terms and conditions
established from time to time by the
Exchange.
Finally, the Exchange believes that it
is subject to significant competitive
forces, as described below in the
Exchange’s statement regarding the
burden on competition.
For these reasons, the Exchange
believes that the proposal is consistent
with the Act.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
In accordance with section 6(b)(8) of
the Act,16 the Exchange believes that the
proposed rule change will not impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act because, in
addition to the proposed services being
completely voluntary, they are available
to all Users on an equal basis (i.e., the
same products and services are available
to all Users).
The Exchange believes that
discontinuing the LCN CSP and
Bundled Network Access Option 2 in
the data center and removing references
to related pricing and obsolete text from
the Fee Schedules would not impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act because no
Users utilize the services proposed to be
discontinued. A CSP User would remain
able to deliver services to a Subscribing
User via direct cross connect, as is
currently the case and as was the case
prior to the introduction of the LCN CSP
connection offering. The proposed rule
change is not intended to address
competitive issues.
Finally, the Exchange notes that it
operates in a highly competitive market
in which market participants can
readily favor competing venues if they
deem fee levels at a particular venue to
be excessive. In such an environment,
the Exchange must continually review,
and consider adjusting, its services and
related 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) 17 of the Act and
subparagraph (f)(2) of Rule 19b–4 18
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) 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.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File No. SR–
NYSEArca–2016–77 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–2016–77. This file
number should be included on the
17 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
19 15 U.S.C. 78s(b)(2)(B).
18 17
15 15
U.S.C. 78f(b)(5).
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16 15
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Federal Register / Vol. 81, No. 110 / Wednesday, June 8, 2016 / Notices
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 No. SR–NYSEArca–
2016–77, and should be submitted on or
before June 29, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
Brent J. Fields,
Secretary.
[FR Doc. 2016–13472 Filed 6–7–16; 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.
mstockstill on DSK3G9T082PROD with NOTICES
Extension:
Form N–2, OMB Control No. 3235–0026,
SEC File No. 270–21.
Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.) the Securities
and Exchange Commission (the
‘‘Commission’’) is soliciting comments
on the collections of information
summarized below. The Commission
20 17
CFR 200.30–3(a)(12).
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17:30 Jun 07, 2016
Jkt 238001
plans to submit this existing collection
of information to the Office of
Management and Budget (‘‘OMB’’) for
extension and approval.
The title for the collection of
information is ‘‘Form N–2 (17 CFR
239.14 and 274.11a–1) under the
Securities Act of 1933 and under the
Investment Company Act of 1940,
Registration Statement of Closed-End
Management Investment Companies.’’
Form N–2 is the form used by closedend management investment companies
(‘‘closed-end funds’’) to register as
investment companies under the
Investment Company Act of 1940 (15
U.S.C. 80a–1 et seq.) (‘‘Investment
Company Act’’) and to register their
securities under the Securities Act of
1933 (15 U.S.C. 77a et seq.) (‘‘Securities
Act’’). The primary purpose of the
registration process is to provide
disclosure of financial and other
information to current and potential
investors for the purpose of evaluating
an investment in a security. Form N–2
also permits closed-end funds to
provide investors with a prospectus
containing information required in a
registration statement prior to the sale or
at the time of confirmation of delivery
of securities. The form also may be used
by the Commission in its regulatory
review, inspection, and policy-making
roles.
The Commission estimates that there
are 136 initial registration statements
and 30 post-effective amendments to
initial registration statements filed on
Form N–2 annually and that the average
number of portfolios referenced in each
initial filing and post-effective
amendment is 1. The Commission
further estimates that the hour burden
for preparing and filing an initial
registration statement on Form N–2 is
515 hours per portfolio, and the hour
burden for preparing and filing a posteffective amendment on Form N–2 is
107 hours per portfolio. The estimated
annual hour burden for preparing and
filing initial registration statements is
70,040 hours (136 initial registration
statements × 1 portfolio × 515 hours per
portfolio). The estimated annual hour
burden for preparing and filing posteffective amendments is 3,210 hours (30
post-effective amendments × 1 portfolio
× 107 hours per portfolio). The
estimated total annual hour burden for
Form N–2, therefore, is estimated to be
73,250 hours (70,040 hours + 3,210
hours).
The information collection
requirements imposed by Form N–2 are
mandatory. Responses to the collection
of information will not be kept
confidential. An agency may not
conduct or sponsor, and a person is not
PO 00000
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Fmt 4703
Sfmt 4703
required to respond to a collection of
information unless it displays a
currently valid control number.
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information will have practical utility;
(b) the accuracy of the agency’s estimate
of the burden of the collection of
information; (c) ways to enhance the
quality, utility, and clarity of the
information 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.
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: June 2, 2016.
Brent J. Fields,
Secretary.
[FR Doc. 2016–13463 Filed 6–7–16; 8:45 am]
BILLING CODE 8011–01–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
Notice of Intent To Release Airport
Property at St. Petersburg-Clearwater
International (PIE), St. Petersburg, FL
Federal Aviation
Administration (FAA), DOT.
ACTION: Notice and request for public
comment.
AGENCY:
The FAA hereby provides
notice of intent to release certain airport
properties of approximately 16.88 acres
at St. Petersburg-Clearwater
International (PIE), St. Petersburg, FL
from the conditions, reservations, and
restrictions as contained in a Quitclaim
Deed agreement between the FAA and
the Pinellas County, dated 11 March
1941. The release of property will allow
Pinellas County to dispose of the
property for Florida Department of
Transportation roadway right of way
project.
SUMMARY:
Comments are due on or before
July 8, 2016.
ADDRESSES: Documents are available for
review at St. Petersburg-Clearwater
International Airport (PIE), and the FAA
DATES:
E:\FR\FM\08JNN1.SGM
08JNN1
]]>Agencies
[Federal Register Volume 81, Number 110 (Wednesday, June 8, 2016)]
[Notices]
[Pages 36981-36984]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-13472]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-77974; File No. SR-NYSEArca-2016-77]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending the NYSE
Arca Options Fee Schedule and the NYSE Arca Equities Schedule of Fees
and Charges for Exchange Services To Eliminate Certain Services That
Are No Longer Utilized by Users and To Remove Obsolete Text
June 2, 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 23, 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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
The Exchange proposes amend the NYSE Arca Options Fee Schedule (the
``Options Fee Schedule'') and, through its wholly owned subsidiary NYSE
Arca Equities, Inc. (``NYSE Arca Equities''), the NYSE Arca Equities
Schedule of
[[Page 36982]]
Fees and Charges for Exchange Services (the ``Equities Fee Schedule''
and, together with the Options Fee Schedule, the ``Fee Schedules'') to
eliminate certain services that are no longer utilized by Users and to
remove obsolete text. 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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to change the Fee Schedules for the co-
location \4\ services offered by the Exchange to eliminate certain
services that are no longer utilized by Users \5\ and to remove
obsolete text.
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\4\ The Exchange initially filed rule changes relating to its
co-location services with the Securities and Exchange Commission
(``Commission'') in 2010. See Securities Exchange Act Release No.
63275 (November 8, 2010), 75 FR 70048 (November 16, 2010) (SR-
NYSEArca-2010-100). The Exchange operates a data center in Mahwah,
New Jersey (the ``data center'') from which it provides co-location
services to Users.
\5\ For purposes of the Exchange's co-location services, a
``User'' means any market participant that requests to receive co-
location services directly from the Exchange. See Securities
Exchange Act Release No. 76010 (September 29, 2015), 80 FR 60197
(October 5, 2015) (SR-NYSEArca-2015-82). As specified in the Fee
Schedules, a User that incurs co-location fees for a particular co-
location service pursuant thereto would not be subject to co-
location fees for the same co-location service charged by the
Exchange's affiliates New York Stock Exchange LLC and NYSE MKT LLC.
See Securities Exchange Act Release No. 70173 (August 13, 2013), 78
FR 50459 (August 19, 2013) (SR-NYSEArca-2013-80).
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LCN CSP Access
The ``Liquidity Center Network'' (``LCN'') is a local area network
available in the data center. A User is currently able to act as a
content service provider (a ``CSP'' User) and deliver services to
another User in the data center (a ``Subscribing'' User).\6\ These
services could include, for example, order routing/brokerage services
and/or data delivery services.
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\6\ See Securities Exchange Act Release No. 67667 (August 15,
2012), 77 FR 50743 (August 22, 2012) (SR-NYSEArca-2012-63).
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Currently, the Exchange offers CSP Users specific, dedicated 10
gigabyte (``Gb'') LCN connections (``LCN CSP'') that would allow CSP
Users to send data to, and communicate with, all their properly
authorized Subscribing Users at once. In such a case, a Subscribing
User would receive the services via its standard LCN connection and
would be charged an initial and monthly fee (``CSP Subscriber fee'')
reflecting the benefit of receiving services from the CSP User in this
manner.\7\
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\7\ Id. Previously, the Exchange also offered a one Gb LCN CSP
connection, but it was discontinued as it was no longer utilized by
Users. See Securities Exchange Act Release No. 72720 (July 30,
2014), 79 FR 45577 (August 5, 2014) (SR-NYSEArca-2014-81).
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However, Users no longer utilize the LCN CSP connection offering.
Accordingly, the Exchange proposes to discontinue LCN CSP connections,
and to remove references to LCN CSP access and CSP Subscriber fees from
the Fee Schedules. A CSP User would remain able to deliver services to
a Subscribing User via direct cross connect, as is currently the case
and as was the case prior to the introduction of the LCN CSP connection
offering.
Bundled Network Access
A User is currently able to select from two ``bundled''
connectivity options when connecting to the data center: ``Bundled
Network Access Option 1'' and ``Bundled Network Access Option 2''.\8\
The Exchange proposes to discontinue Bundled Network Access Option 2,
as Users no longer utilize it, and to remove references to related
pricing from the Fee Schedules. In addition, the Exchange proposes to
rename ``Bundled Network Access Option 1'' as ``Bundled Network
Access,'' as it would be the sole remaining option.
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\8\ Previously, the Exchange offered other ``bundled''
connectivity options, but they were discontinued as they were no
longer utilized by Users. See id., at 45578.
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IP Network Access
The internet protocol (``IP'') network is a local area network
available in the data center.\9\ IP network access is offered in 1, 10
and 40 Gb capacities. The Exchange proposes to delete statements in the
Fee Schedules that the 40 Gb circuit of the IP network is expected to
be available no later than April 15, 2016,\10\ as such statements are
obsolete. This proposed change would have no impact on pricing.
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\9\ See Securities Exchange Act Release No. 74219 (February 6,
2015), 80 FR 7899 (February 12, 2015) (SR-NYSEArca-2015-03) (notice
of filing and immediate effectiveness of proposed rule change to
include IP network connections and fiber cross connects between a
User's cabinet and a non-User's equipment).
\10\ See Securities Exchange Act Release No. 76372 (November 5,
2015), 80 FR 70039 (November 12, 2015) (SR-NYSEArca-2015-105)
(notice of filing and immediate effectiveness of proposed rule
change to include IP 40 Gb network connections).
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General
As is the case with all Exchange co-location arrangements, (i)
neither a User nor any of the User's customers would be permitted to
submit orders directly to the Exchange unless such User or customer is
a member organization, a Sponsored Participant or an agent thereof
(e.g., a service bureau providing order entry services); (ii) use of
the co-location services proposed herein would be completely voluntary
and available to all Users on a non-discriminatory basis; \11\ and
(iii) a User would only incur one charge for the particular co-location
service described herein, regardless of whether the User connects only
to the Exchange or to the Exchange and one or both of its
affiliates.\12\
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\11\ As is currently the case, Users that receive co-location
services from the Exchange will not receive any means of access to
the Exchange's trading and execution systems that is separate from,
or superior to, that of other Users. In this regard, all orders sent
to the Exchange enter the Exchange's trading and execution systems
through the same order gateway, regardless of whether the sender is
co-located in the data center or not. In addition, co-located Users
do not receive any market data or data service product that is not
available to all Users, although Users that receive co-location
services normally would expect reduced latencies in sending orders
to, and receiving market data from, the Exchange.
\12\ See SR-NYSEArca-2013-80, supra note 5, at 50459. The
Exchange's affiliates have also submitted substantially the same
proposed rule change to propose the changes described herein. See
SR-NYSE-2016-39 and SR-NYSEMKT-2016-57.
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The proposed change is not otherwise intended to address any other
issues relating to co-location services and/or related fees, and the
Exchange is not aware of any problems that Users would have in
complying with the proposed change.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with section 6(b) of the Act,\13\ in general, and section 6(b)(4) of
the Act,\14\ 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,
[[Page 36983]]
issuers, brokers or dealers. The Exchange also believes that the
proposed rule change furthers the objectives of section 6(b)(5) of the
Act,\15\ in particular, because it is 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 mechanisms of, a
free and open market and a national market system and, in general, to
protect investors and the public interest and because it is not
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
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\13\ 15 U.S.C. 78f(b).
\14\ 15 U.S.C. 78f(b)(4).
\15\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that the proposed change is reasonable,
equitable and not unfairly discriminatory because discontinuing the LCN
CSP and Bundled Network Access Option 2 in the data center would permit
the Exchange to streamline the offerings available to Users in the data
center by eliminating services that Users no longer utilize and, by
removing references to related pricing from the Fee Schedules, make the
Fee Schedules easier to read, understand and administer. The Exchange
believes that, because no Users utilize such services, it would be
equitable and not unfairly discriminatory to discontinue the services.
The Exchange believes that it is reasonable to discontinue the
services in the data center that are no longer utilized by Users and to
remove references to related pricing from the Fee Schedules because the
Exchange offers the services described herein as a convenience to
Users, but in doing so incurs certain costs, including costs related to
the data center facility, hardware and equipment and costs related to
personnel required for initial installation and ongoing monitoring,
support and maintenance of such services. Removing services that Users
do not utilize from the co-location offerings would contribute to a
more efficient process for managing the various services offered to
Users, which would improve the utilization of the data center
resources, both with respect to personnel and infrastructure, including
hardware and software.
The Exchange believes that eliminating references in the Fee
Schedules that state that the 40 Gb circuit of the IP network is
expected to be available no later than April 15, 2016, is reasonable,
equitable and not unfairly discriminatory because these references are
obsolete and no longer have an impact on pricing. The proposed change
would result in the removal of obsolete text from the Fee Schedules and
therefore add greater clarity to the Fee Schedules regarding the
services offered and the applicable fees.
For the reasons above, the proposed changes do not unfairly
discriminate between or among market participants that are otherwise
capable of satisfying any applicable co-location fees, requirements,
terms and conditions established from time to time by the Exchange.
Finally, the Exchange believes that it is subject to significant
competitive forces, as described below in the Exchange's statement
regarding the burden on competition.
For these reasons, the Exchange believes that the proposal is
consistent with the Act.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with section 6(b)(8) of the Act,\16\ the Exchange
believes that the proposed rule change will not impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act because, in addition to the proposed services being
completely voluntary, they are available to all Users on an equal basis
(i.e., the same products and services are available to all Users).
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\16\ 15 U.S.C. 78f(b)(8).
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The Exchange believes that discontinuing the LCN CSP and Bundled
Network Access Option 2 in the data center and removing references to
related pricing and obsolete text from the Fee Schedules would not
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act because no Users utilize the
services proposed to be discontinued. A CSP User would remain able to
deliver services to a Subscribing User via direct cross connect, as is
currently the case and as was the case prior to the introduction of the
LCN CSP connection offering. The proposed rule change is not intended
to address competitive issues.
Finally, the Exchange notes that it operates in a highly
competitive market in which market participants can readily favor
competing venues if they deem fee levels at a particular venue to be
excessive. In such an environment, the Exchange must continually
review, and consider adjusting, its services and related 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) \17\ of the Act and subparagraph (f)(2) of Rule
19b-4 \18\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
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\17\ 15 U.S.C. 78s(b)(3)(A).
\18\ 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) \19\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\19\ 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 No. SR-NYSEArca-2016-77 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-2016-77. This file
number should be included on the
[[Page 36984]]
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 No. SR-NYSEArca-2016-77, and should be submitted on or before June
29, 2016.
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\20\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
Brent J. Fields,
Secretary.
[FR Doc. 2016-13472 Filed 6-7-16; 8:45 am]
BILLING CODE 8011-01-P
