Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its Price List To Eliminate Take Fees for Bonds Executed on the NYSE BondsSM, 72842-72844 [2016-25466]
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Federal Register / Vol. 81, No. 204 / Friday, October 21, 2016 / Notices
telephone for advice on filing
alternatives.
FOR FURTHER INFORMATION CONTACT:
David A. Trissell, General Counsel, at
202–789–6820.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
II. Docketed Proceeding(s)
asabaliauskas on DSK3SPTVN1PROD with NOTICES
I. Introduction
The Commission gives notice that the
Postal Service filed request(s) for the
Commission to consider matters related
to negotiated service agreement(s). The
request(s) may propose the addition or
removal of a negotiated service
agreement from the market dominant or
the competitive product list, or the
modification of an existing product
currently appearing on the market
dominant or the competitive product
list.
Section II identifies the docket
number(s) associated with each Postal
Service request, the title of each Postal
Service request, the request’s acceptance
date, and the authority cited by the
Postal Service for each request. For each
request, the Commission appoints an
officer of the Commission to represent
the interests of the general public in the
proceeding, pursuant to 39 U.S.C. 505
(Public Representative). Section II also
establishes comment deadline(s)
pertaining to each request.
The public portions of the Postal
Service’s request(s) can be accessed via
the Commission’s Web site (https://
www.prc.gov). Non-public portions of
the Postal Service’s request(s), if any,
can be accessed through compliance
with the requirements of 39 CFR
3007.40.
The Commission invites comments on
whether the Postal Service’s request(s)
in the captioned docket(s) are consistent
with the policies of title 39. For
request(s) that the Postal Service states
concern market dominant product(s),
applicable statutory and regulatory
requirements include 39 U.S.C. 3622, 39
U.S.C. 3642, 39 CFR part 3010, and 39
CFR part 3020, subpart B. For request(s)
that the Postal Service states concern
competitive product(s), applicable
statutory and regulatory requirements
include 39 U.S.C. 3632, 39 U.S.C. 3633,
39 U.S.C. 3642, 39 CFR part 3015, and
39 CFR part 3020, subpart B. Comment
deadline(s) for each request appear in
section II.
II. Docketed Proceeding(s)
1. Docket No(s).: MC2017–5 and
CP2017–11; Filing Title: Request of the
United States Postal Service to Add
VerDate Sep<11>2014
19:06 Oct 20, 2016
Jkt 241001
Priority Mail Contract 248 to
Competitive Product List and Notice of
Filing (Under Seal) of Unredacted
Governors’ Decision, Contract, and
Supporting Data; Filing Acceptance
Date: October 14, 2016; Filing Authority:
39 U.S.C. 3642 and 39 CFR 3020.30 et
seq.; Public Representative: Curtis E.
Kidd; Comments Due: October 24, 2016.
2. Docket No(s).: MC2017–6 and
CP2017–12; Filing Title: Request of the
United States Postal Service to Add
Priority Mail Express & Priority Mail
Contract 37 to Competitive Product List
and Notice of Filing (Under Seal) of
Unredacted Governors’ Decision,
Contract, and Supporting Data; Filing
Acceptance Date: October 14, 2016;
Filing Authority: 39 U.S.C. 3642 and 39
CFR 3020.30 et seq.; Public
Representative: Curtis E. Kidd;
Comments Due: October 24, 2016.
3. Docket No(s).: CP2017–13; Filing
Title: Notice of United States Postal
Service of Filing a Functionally
Equivalent Global Expedited Package
Services 3 Negotiated Service
Agreement and Application for NonPublic Treatment of Materials Filed
Under Seal; Filing Acceptance Date:
October 14, 2016; Filing Authority: 39
CFR 3015.5; Public Representative:
Jennaca D. Upperman; Comments Due:
October 25, 2016.
4. Docket No(s).: CP2017–14; Filing
Title: Notice of United States Postal
Service of Filing a Functionally
Equivalent Global Expedited Package
Services 3 Negotiated Service
Agreement and Application for NonPublic Treatment of Materials Filed
Under Seal; Filing Acceptance Date:
October 14, 2016; Filing Authority: 39
CFR 3015.5; Public Representative:
Jennaca D. Upperman; Comments Due:
October 25, 2016.
5. Docket No(s).: CP2017–15; Filing
Title: Notice of United States Postal
Service of Filing a Functionally
Equivalent Global Expedited Package
Services 3 Negotiated Service
Agreement and Application for NonPublic Treatment of Materials Filed
Under Seal; Filing Acceptance Date:
October 14, 2016; Filing Authority: 39
CFR 3015.5; Public Representative:
Kenneth R. Moeller; Comments Due:
October 25, 2016.
6. Docket No(s).: CP2017–16; Filing
Title: Notice of United States Postal
Service of Filing a Functionally
Equivalent Global Expedited Package
Services 3 Negotiated Service
Agreement and Application for NonPublic Treatment of Materials Filed
Under Seal; Filing Acceptance Date:
October 14, 2016; Filing Authority: 39
CFR 3015.5; Public Representative:
PO 00000
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Kenneth R. Moeller; Comments Due:
October 25, 2016.
7. Docket No(s).: CP2017–17; Filing
Title: Notice of United States Postal
Service of Filing a Functionally
Equivalent Global Expedited Package
Services 3 Negotiated Service
Agreement and Application for NonPublic Treatment of Materials Filed
Under Seal; Filing Acceptance Date:
October 14, 2016; Filing Authority: 39
CFR 3015.5; Public Representative:
Curtis E. Kidd; Comments Due: October
26, 2016.
This notice will be published in the
Federal Register.
Stacy L. Ruble,
Secretary.
[FR Doc. 2016–25461 Filed 10–20–16; 8:45 am]
BILLING CODE 7710–FW–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–79106; File No. SR–NYSE–
2016–65]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend Its
Price List To Eliminate Take Fees for
Bonds Executed on the NYSE BondsSM
System
October 17, 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 October
3, 2016, New York Stock Exchange LLC
(‘‘NYSE’’ or the ‘‘Exchange’’) 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 selfregulatory 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 its
Price List to eliminate take fees for
bonds executed on the NYSE BondsSM
system. 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.
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
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Federal Register / Vol. 81, No. 204 / Friday, October 21, 2016 / Notices
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
asabaliauskas on DSK3SPTVN1PROD with NOTICES
1. Purpose
The Exchange proposes to amend its
Price List to eliminate take fees for
bonds executed on the NYSE Bonds
system. The Exchange currently charges
transaction fees to liquidity takers for
transactions executed on NYSE Bonds
with a staggered fee schedule based on
the number of bonds purchased or sold.
Currently, the transaction fee for orders
that take liquidity from the NYSE Bonds
Book is $0.50 per bond for executions of
one to ten (10) bonds; $0.20 per bond for
executions of eleven (11) to twenty-five
(25) bonds; and $0.10 per bond for
executions of twenty-six (26) bonds or
more. The Exchange also currently has
a fee cap of $100 per execution.
The Exchange proposes to eliminate
the take fee for all bonds executed on
NYSE Bonds. The Exchange also
proposes to remove text from the fee
schedule regarding the maximum fee
per execution because that text would
no longer be applicable once the take fee
is eliminated.
Additionally, the Exchange recently
adopted the Liquidity Provider
Incentive Program, a voluntary rebate
program that pays Users 4 of NYSE
Bonds a monthly rebate provided Users
who opt into the rebate program meet
specified quoting requirements.5 Users
who opt in to the Liquidity Provider
Incentive Program are subject to a
transaction fee for orders that provide
liquidity to the NYSE Bonds Book of
$0.50 per bond.6 For orders that take
4 Rule 86(b)(2)(M) defines a User as any Member
or Member Organization, Sponsored Participant, or
Authorized Trader that is authorized to access
NYSE Bonds.
5 See Securities Exchange Act Release Nos. 77591
(April 12, 2016), 81 FR 22656 (April 18, 2016) (SR–
NYSE–2016–26); and 77812 (May 11, 2016), 81 FR
30594 May 17, 2016) (SR–NYSE–2016–34).
6 The Exchange recently adopted a fee waiver
applicable to Users that provide liquidity in 800 or
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19:06 Oct 20, 2016
Jkt 241001
liquidity from the NYSE Bonds Book,
the current tiered fees noted above
apply. However, with this proposed rule
change, Users who opt into the
Liquidity Provider Incentive Program
would no longer be subject to fees for
orders that take liquidity. To reflect the
elimination of take fees as proposed
herein, the Exchange proposes to delete
text from the fee schedule regarding the
applicability of standard execution fees
under the Liquidity Provider Incentive
Program for orders that take liquidity
from the NYSE Bonds Book because that
text would no longer be applicable.
The proposed rule change is intended
to provide Users with a greater incentive
to transact on the NYSE Bonds system.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,7 in general, and
furthers the objectives of Sections
6(b)(4) and 6(b)(5) of the Act,8 in
particular, because it provides for the
equitable allocation of reasonable dues,
fees, and other charges among its
members, issuers and other persons
using its facilities and does not unfairly
discriminate between customers,
issuers, brokers or dealers.
The Exchange believes that the
proposed changes to eliminate the
transaction fee for orders that take
liquidity from the NYSE bonds Book is
reasonable and equitable as it is
designed to incentivize the submission
of such orders and increase order
volume on the Exchange. The proposed
fee change is a reasonable amendment
to the Exchange’s fee schedule and is
equitably allocated and does not
unfairly discriminate between
customers, issuers, and brokers or
dealers because all Users are eligible to
submit (or not submit) displayed
liquidity taking orders in bonds traded
on the Exchange. The Exchange believes
that the proposed fee change is a
reasonable method to incentivize the
submission of such orders, which the
Exchange believes will result in a
greater number of bonds transacted on
the Exchange, thereby increasing
displayed liquidity and traded volume
on the Exchange.
The Exchange is proposing to adopt a
pricing model whereby Users that take
liquidity from the NYSE Bonds system
would not pay a fee. The proposed rule
more qualifying CUSIPs quoted on the NYSE Bonds
Book, and a fee cap of $5,000 per month applicable
to all Users that do not attain the fee waiver. See
Securities Exchange Act Release No. 78108 (June
21, 2016), 81 FR 41636 (June 27, 2016) (SR–NYSE–
2016–42).
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(4), (5).
PO 00000
Frm 00074
Fmt 4703
Sfmt 4703
72843
change will therefore benefit all Users
that take liquidity from the NYSE Bonds
system.
The Exchange further believes that the
proposed rule change is equitable and
not unfairly discriminatory in that it
will apply uniformly to all Users
accessing the NYSE Bonds system. All
similarly situated Users would be
subject to the same fee structure, and
each User would have the ability to
determine the extent to which the
Exchange’s proposed structure will
provide it with an economic incentive
to use the NYSE Bonds system, and
model its business accordingly.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
In accordance with Section 6(b)(8) of
the Act,9 the Exchange believes that the
proposed rule change would not impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. Debt
securities typically trade in a
decentralized OTC dealer market that is
less liquid and transparent than the
equities markets. The Exchange believes
that the proposed change would
increase competition with these OTC
venues by creating additional incentives
to engage in bonds transactions on the
Exchange and rewarding market
participants for actively quoting and
providing liquidity in the only
transparent bond market, which the
Exchange believes will enhance market
quality.
The Exchange notes that it operates in
a highly competitive market in which
market participants can readily favor
competing venues that are not
transparent. In such an environment,
the Exchange must continually review,
and consider adjusting its fees and
rebates to remain competitive with other
exchanges as well as with alternative
trading systems and other venues that
are not required to comply with the
statutory standards applicable to
exchanges. Because competitors are free
to modify their own fees and credits in
response, and because market
participants may readily adjust their
order routing practices, the Exchange
believes that the degree to which fee
changes in this market may impose any
burden on competition is extremely
limited. As a result of all of these
considerations, the Exchange does not
believe that the proposed change will
impair the ability of member
organizations or competing order
execution venues to maintain their
competitive standing in the financial
markets.
9 15
E:\FR\FM\21OCN1.SGM
U.S.C. 78f(b)(8).
21OCN1
72844
Federal Register / Vol. 81, No. 204 / Friday, October 21, 2016 / Notices
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, 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) 12 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:
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–NYSE–
2016–65, and should be submitted on or
before November 14, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–25466 Filed 10–20–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
asabaliauskas on DSK3SPTVN1PROD 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–
NYSE–2016–65 on the subject line.
[Release No. 34–79105; File No. SR–
NASDAQ–2016–133]
Paper Comments
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSE–2016–65. 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/
October 17, 2016.
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
12 15 U.S.C. 78s(b)(2)(B).
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend
Specialized Quote Feed Port Fees
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on October
3, 2016, The NASDAQ Stock Market
LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
the proposed rule change as described
in Items I, II, and III, below, which Items
have been prepared by the Exchange.
The Commission is publishing this
notice to solicit comments on the
10 15
13 17
11 17
1 15
VerDate Sep<11>2014
19:06 Oct 20, 2016
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
Jkt 241001
PO 00000
Frm 00075
Fmt 4703
Sfmt 4703
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
Chapter XV, entitled ‘‘Options Pricing,’’
at Section 3, entitled ‘‘NASDAQ
Options Market—Access Services.’’
Chapter XV governs pricing for
Exchange members using the NASDAQ
Options Market LLC (‘‘NOM’’), the
Exchange’s facility for executing and
routing standardized equity and index
options. The Exchange proposes to
amend Specialized Quote Feed (‘‘SQF’’)
Port 3 Fees.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://nasdaq.cchwallstreet.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
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects 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 amend the
SQF Port Fees in Chapter XV, Section 3
of the NOM Rules, while the Exchange
transitions to state-of-the-art hardware
and software architecture to achieve a
more efficient and more robust
infrastructure to support the growing
needs of our Options Participants
(‘‘NOM Refresh’’). In connection with
the NOM Refresh, NOM Market Makers
will be required to make changes to
3 SQF ports are ports that receive inbound quotes
at any time within that month. The SQF Port allows
a NOM Market Maker to access information such as
execution reports and other relevant data through
a single feed. For example, this data would show
which symbols are trading on NOM and the current
state of an options symbol (i.e., open for trading,
trading, halted or closed). Auction notifications and
execution reports are also available. NOM Market
Makers rely on data available through the SQF Port
to provide them the necessary information to
perform market making activities.
E:\FR\FM\21OCN1.SGM
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]]>Agencies
[Federal Register Volume 81, Number 204 (Friday, October 21, 2016)]
[Notices]
[Pages 72842-72844]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-25466]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-79106; File No. SR-NYSE-2016-65]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend Its Price List To Eliminate Take Fees for Bonds Executed on the
NYSE Bonds\SM\ System
October 17, 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 October 3, 2016, New York Stock Exchange LLC (``NYSE''
or the ``Exchange'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I,
II, and III below, which Items have been prepared by the self-
regulatory organization. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend its Price List to eliminate take
fees for bonds executed on the NYSE Bonds\SM\ system. 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.
[[Page 72843]]
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend its Price List to eliminate take
fees for bonds executed on the NYSE Bonds system. The Exchange
currently charges transaction fees to liquidity takers for transactions
executed on NYSE Bonds with a staggered fee schedule based on the
number of bonds purchased or sold. Currently, the transaction fee for
orders that take liquidity from the NYSE Bonds Book is $0.50 per bond
for executions of one to ten (10) bonds; $0.20 per bond for executions
of eleven (11) to twenty-five (25) bonds; and $0.10 per bond for
executions of twenty-six (26) bonds or more. The Exchange also
currently has a fee cap of $100 per execution.
The Exchange proposes to eliminate the take fee for all bonds
executed on NYSE Bonds. The Exchange also proposes to remove text from
the fee schedule regarding the maximum fee per execution because that
text would no longer be applicable once the take fee is eliminated.
Additionally, the Exchange recently adopted the Liquidity Provider
Incentive Program, a voluntary rebate program that pays Users \4\ of
NYSE Bonds a monthly rebate provided Users who opt into the rebate
program meet specified quoting requirements.\5\ Users who opt in to the
Liquidity Provider Incentive Program are subject to a transaction fee
for orders that provide liquidity to the NYSE Bonds Book of $0.50 per
bond.\6\ For orders that take liquidity from the NYSE Bonds Book, the
current tiered fees noted above apply. However, with this proposed rule
change, Users who opt into the Liquidity Provider Incentive Program
would no longer be subject to fees for orders that take liquidity. To
reflect the elimination of take fees as proposed herein, the Exchange
proposes to delete text from the fee schedule regarding the
applicability of standard execution fees under the Liquidity Provider
Incentive Program for orders that take liquidity from the NYSE Bonds
Book because that text would no longer be applicable.
---------------------------------------------------------------------------
\4\ Rule 86(b)(2)(M) defines a User as any Member or Member
Organization, Sponsored Participant, or Authorized Trader that is
authorized to access NYSE Bonds.
\5\ See Securities Exchange Act Release Nos. 77591 (April 12,
2016), 81 FR 22656 (April 18, 2016) (SR-NYSE-2016-26); and 77812
(May 11, 2016), 81 FR 30594 May 17, 2016) (SR-NYSE-2016-34).
\6\ The Exchange recently adopted a fee waiver applicable to
Users that provide liquidity in 800 or more qualifying CUSIPs quoted
on the NYSE Bonds Book, and a fee cap of $5,000 per month applicable
to all Users that do not attain the fee waiver. See Securities
Exchange Act Release No. 78108 (June 21, 2016), 81 FR 41636 (June
27, 2016) (SR-NYSE-2016-42).
---------------------------------------------------------------------------
The proposed rule change is intended to provide Users with a
greater incentive to transact on the NYSE Bonds system.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\7\ in general, and furthers the
objectives of Sections 6(b)(4) and 6(b)(5) of the Act,\8\ in
particular, because it provides for the equitable allocation of
reasonable dues, fees, and other charges among its members, issuers and
other persons using its facilities and does not unfairly discriminate
between customers, issuers, brokers or dealers.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(4), (5).
---------------------------------------------------------------------------
The Exchange believes that the proposed changes to eliminate the
transaction fee for orders that take liquidity from the NYSE bonds Book
is reasonable and equitable as it is designed to incentivize the
submission of such orders and increase order volume on the Exchange.
The proposed fee change is a reasonable amendment to the Exchange's fee
schedule and is equitably allocated and does not unfairly discriminate
between customers, issuers, and brokers or dealers because all Users
are eligible to submit (or not submit) displayed liquidity taking
orders in bonds traded on the Exchange. The Exchange believes that the
proposed fee change is a reasonable method to incentivize the
submission of such orders, which the Exchange believes will result in a
greater number of bonds transacted on the Exchange, thereby increasing
displayed liquidity and traded volume on the Exchange.
The Exchange is proposing to adopt a pricing model whereby Users
that take liquidity from the NYSE Bonds system would not pay a fee. The
proposed rule change will therefore benefit all Users that take
liquidity from the NYSE Bonds system.
The Exchange further believes that the proposed rule change is
equitable and not unfairly discriminatory in that it will apply
uniformly to all Users accessing the NYSE Bonds system. All similarly
situated Users would be subject to the same fee structure, and each
User would have the ability to determine the extent to which the
Exchange's proposed structure will provide it with an economic
incentive to use the NYSE Bonds system, and model its business
accordingly.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\9\ the Exchange
believes that the proposed rule change would not impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act. Debt securities typically trade in a decentralized
OTC dealer market that is less liquid and transparent than the equities
markets. The Exchange believes that the proposed change would increase
competition with these OTC venues by creating additional incentives to
engage in bonds transactions on the Exchange and rewarding market
participants for actively quoting and providing liquidity in the only
transparent bond market, which the Exchange believes will enhance
market quality.
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\9\ 15 U.S.C. 78f(b)(8).
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The Exchange notes that it operates in a highly competitive market
in which market participants can readily favor competing venues that
are not transparent. In such an environment, the Exchange must
continually review, and consider adjusting its fees and rebates to
remain competitive with other exchanges as well as with alternative
trading systems and other venues that are not required to comply with
the statutory standards applicable to exchanges. Because competitors
are free to modify their own fees and credits in response, and because
market participants may readily adjust their order routing practices,
the Exchange believes that the degree to which fee changes in this
market may impose any burden on competition is extremely limited. As a
result of all of these considerations, the Exchange does not believe
that the proposed change will impair the ability of member
organizations or competing order execution venues to maintain their
competitive standing in the financial markets.
[[Page 72844]]
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, because it establishes a due, fee, or other
charge imposed by the Exchange.
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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 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) \12\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\12\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-NYSE-2016-65 on the subject line.
Paper Comments
Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSE-2016-65. 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-NYSE-2016-65, and should be
submitted on or before November 14, 2016.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-25466 Filed 10-20-16; 8:45 am]
BILLING CODE 8011-01-P
