Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE Arca Options Fee Schedule Effective November 3, 2016, 81182-81184 [2016-27602]
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Federal Register / Vol. 81, No. 222 / Thursday, November 17, 2016 / Notices
including whether an insulin pump is
required, as well as the care and
maintenance of all required diabetes
related monitors and equipment. This
form assists the Peace Corps in
determining whether the Applicant will
be in need of insulin storage while in
service and, if so, will assist the Peace
Corps in determining an appropriate
placement for the Applicant.
agency’s estimate of the burden of the
proposed collection of information,
including the validity of the information
to be collected; and, ways to minimize
the burden of the collection of
information on those who are to
respond, including through the use of
automated collection techniques, when
appropriate, and other forms of
information technology.
• Prescription for Eyeglasses Form
This notice is issued in Washington, DC,
on November 8, 2016.
Monique Harris,
FOIA/Privacy Act Specialist, Management.
(a) Estimated number of Applicants/physicians.
(b) Frequency of response ...
(c) Estimated average burden per response.
(d) Estimated total reporting
burden.
(e) Estimated annual cost to
respondents.
3,293/3,293.
one time.
60 minutes/15 minutes.
3,293 hours/824
hours.
Indeterminate.
General Description of Collection: The
Prescription for Eyeglasses is used with
Applicants who have reported on the
Health History Form that they use
corrective lenses or otherwise have
uncorrected vision that is worse than
20/40. In these cases, Applicants are
provided a Prescription for Eyeglasses
Form for their prescriber to indicate
eyeglasses frame measurements, lens
instructions, type of lens, gross vision
and any special instructions. This form
is used in order to enable the Peace
Corps to obtain replacement eyeglasses
for a Volunteer during service.
• Required Peace Corps Immunizations Form
asabaliauskas on DSK3SPTVN1PROD with NOTICES
(a) Estimated number of Applicants/physicians.
(b) Frequency of response ...
(c) Estimated average burden per response.
(d) Estimated total reporting
burden.
(e) Estimated annual cost to
respondents.
5,600.
one time.
60 minutes.
5,600 hours.
Indeterminate.
General Description of Collection: The
Required Peace Corps Immunizations
Form is used to informed Applicants of
the specific vaccines and/or
documented proof of immunity required
for medical clearance for the specific
country of service. The form advises the
Applicant that all other Center for
Disease Control (CDC) recommended
vaccinations will be administered after
arrival in-country. This form assists the
Peace Corps with establishing a baseline
of the Applicants immunization history
and prepare for any additional vaccines
recommended for country of service.
Request for Comment: Peace Corps
invites comments on whether the
proposed collections of information are
necessary for proper performance of the
functions of the Peace Corps, including
whether the information will have
practical use; the accuracy of the
VerDate Sep<11>2014
21:24 Nov 16, 2016
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[FR Doc. 2016–27565 Filed 11–16–16; 8:45 am]
BILLING CODE 6051–01–P3
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–79291; File No. SR–
NYSEArca–2016–144]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend the NYSE Arca
Options Fee Schedule Effective
November 3, 2016
November 10, 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
November 3, 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 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 the Substance
of the Proposed Rule Change
The Exchange proposes to amend the
NYSE Arca Options Fee Schedule (‘‘Fee
Schedule’’). The Exchange proposes to
implement the fee change effective
November 3, 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.
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
PO 00000
Frm 00130
Fmt 4703
Sfmt 4703
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this filing is to amend
the Fee Schedule effective November 3,
2016. Specifically, the Exchange
proposes to (i) modify the qualification
for Tier 6 of Customer and Professional
Customer Monthly Posting Credit Tiers
and Qualifications in Penny Pilot Issues
(the ‘‘Posting Tiers’’); and (ii) modify
one aspect of the Customer and
Professional Customer Incentive
Program.
Currently, to qualify for Tier 6 of the
Posting Tiers, OTP Holders and OTP
Firms (‘‘OTPs’’) must execute at least
0.50% of Total Industry Customer
equity and ETF option ADV (‘‘TCADV’’)
from Customer and Professional
Customer posted orders in all issues
(‘‘the options component’’), plus
executed ADV of 0.70% of U.S. equity
market share posted and executed on
NYSE Arca Equity Market (‘‘the equity
component’’). OTPs that achieve Tier 6
are eligible to receive a $0.48 credit
applied to posted electronic Customer
and Professional Customer executions
in Penny Pilot Issues.
In addition, the Customer and
Professional Customer Incentive
Program (‘‘the Incentive Program’’),
which provides OTPs six alternatives to
earn additional posting credits ranging
from $0.01 to $0.05, currently affords
OTPs the ability to earn an additional
$0.03 credit on Customer and
Professional Customer Posting Credits
by meeting the same 0.70% minimum
qualification of the equity component as
set forth in Tier 6.
The Exchange is proposing to modify
Tier 6 of the Posting Tiers by reducing
the options component from 0.50%
TCADV to 0.35% TCADV, while
increasing the threshold of the equity
component from 0.70% to 0.80% of U.S.
E:\FR\FM\17NON1.SGM
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Federal Register / Vol. 81, No. 222 / Thursday, November 17, 2016 / Notices
asabaliauskas on DSK3SPTVN1PROD with NOTICES
equity market share posted and
executed on NYSE Arca Equity Market.
In addition, to maintain parity with
the Incentive Program that likewise
offers a credit when an OTP meets the
same 0.70% minimum qualification of
the equity component as set forth in
current Tier 6, the Exchange similarly
proposes to increase this qualification
basis. Specifically, the Exchange
proposes to increase the equity
threshold alternative from 0.70% to
0.80% of U.S. equity market share
posted and executed on NYSE Arca
Equity Market qualification in order for
OTPs to qualify to earn an additional
$0.03 credit.
The Exchange believes that the
proposal to modify Tier 6 of the Posting
Tiers by reducing the option
component, while increasing the equity
component would encourage greater
participation on both the options and
equity exchanges. The Exchange
likewise believes that the proposed
change to the Incentive Program would
operate to maintain parity with the
similar, alternative incentives offered by
the Exchange and would also encourage
participation in the NYSE Arca Equity
Market.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,4 in general, and
furthers the objectives of Sections
6(b)(4) and (5) of the Act,5 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 to modifications to the
qualifications for Tier 6 of the Posting
Tiers, and the similar adjustment to the
Incentive Program, are reasonable,
equitable, and not unfairly
discriminatory because the changes are
designed to attract additional Customer
and Professional Customer electronic
equity and ETF option volume to the
Exchange, which would benefit all
participants by offering greater price
discovery, increased transparency, and
an increased opportunity to trade on the
Exchange. The Exchange believes that
adjusting the methods for achieving the
credits available on the Exchange (i.e.,
by reducing the qualification basis for
the options component, while
increasing the qualification basis for the
equity component) is reasonable,
4 15
5 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4) and (5).
VerDate Sep<11>2014
21:24 Nov 16, 2016
equitable and not unfairly
discriminatory because it would
encourage more OTPs to direct both
options and equity volume to the
Exchange in an effort to qualify for the
credits.
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,6 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 purposes of the Act.
Instead, the Exchange believes that the
proposed changes would continue to
encourage competition, including by
attracting additional liquidity to the
Exchange, which would continue to
make the Exchange a more competitive
venue for, among other things, order
execution and price discovery. The
Exchange does not believe that the
proposed change would impair the
ability of any market participants or
competing order execution venues to
maintain their competitive standing in
the financial markets.
The Exchange notes that it operates in
a highly competitive market in which
market participants can readily favor
competing venues. In such an
environment, the Exchange must
continually review, and consider
adjusting, its fees and credits to remain
competitive with other exchanges.
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 degree to which fee
changes in this market may impose any
burden on competition is extremely
limited. 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) 7 of the Act and
6 15
7 15
Jkt 241001
PO 00000
U.S.C. 78f(b)(8).
U.S.C. 78s(b)(3)(A).
Frm 00131
Fmt 4703
subparagraph (f)(2) of Rule 19b–4 8
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) 9 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 Number SR–
NYSEArca–2016–144 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–2016–144. 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
8 17
9 15
Sfmt 4703
81183
CFR 240.19b–4(f)(2).
U.S.C. 78s(b)(2)(B).
E:\FR\FM\17NON1.SGM
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Federal Register / Vol. 81, No. 222 / Thursday, November 17, 2016 / Notices
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–
NYSEArca–2016–144, and should be
submitted on or before December 8,
2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Brent J. Fields,
Secretary.
[FR Doc. 2016–27602 Filed 11–16–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–79290; File Nos. SR–BX–
2016–046; SR–NASDAQ–2016–111]
Self-Regulatory Organizations;
NASDAQ BX, Inc.; The Nasdaq Stock
Market LLC; Order Approving
Proposed Rule Changes, as Modified
by Amendments No. 1, Relating to
Post-Only Orders and Orders With
Midpoint Pegging
asabaliauskas on DSK3SPTVN1PROD with NOTICES
November 10, 2016.
I. Introduction
On September 13, 2016, NASDAQ BX,
Inc. (‘‘BX’’) and The Nasdaq Stock
Market LLC (‘‘Nasdaq’’) (individually,
an ‘‘Exchange,’’ and together, the
‘‘Exchanges’’) 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 proposed rule changes
relating to Post-Only Orders and Orders
with Midpoint Pegging. The proposed
rule changes were published for
comment in the Federal Register on
September 28, 2016.3 On October 5,
2016, Nasdaq filed Amendment No. 1 to
its proposed rule change (‘‘Nasdaq
Amendment No. 1’’) and on November
3, 2016, BX filed Amendment No. 1 to
its proposed rule change (‘‘BX
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release Nos. 78909
(September 22, 2016), 81 FR 66708 (‘‘BX Notice’’)
and 78908 (September 22, 2016), 81 FR 66702
(‘‘Nasdaq Notice’’).
1 15
VerDate Sep<11>2014
21:24 Nov 16, 2016
Jkt 241001
Amendment No. 1’’).4 The Commission
received one comment letter on
Nasdaq’s proposed rule change 5 and a
response letter from Nasdaq.6 The
Commission is approving the
Exchanges’ proposals, as modified by
their corresponding Amendment No. 1.
II. Description of the Proposed Rule
Changes
The Exchanges are proposing to
amend the behavior of Post-Only Orders
when they interact with resting NonDisplayed Orders, and the behavior of
Orders with Midpoint Pegging in a
crossed market. The Exchanges’
proposals are substantively identical in
many respects. Therefore, the
description below describes the
proposals jointly but notes material
differences where applicable.7
Currently, BX and Nasdaq Rules
4702(b)(4)(A) provide that, if the
adjusted price 8 of a Post-Only Order
would lock or cross an Order on the
respective Exchange’s Book, the PostOnly Order would be repriced, ranked,
and displayed at one minimum price
increment below the current best-priced
Order to sell on the respective
Exchange’s Book (for bids) or above the
current best-priced Order to buy on the
respective Exchange’s Book (for offers).
4 In their respective Amendment No. 1, BX and
Nasdaq modified the discussion of their respective
proposal to reflect that, pursuant to proposed BX
and Nasdaq Rules 4702(b)(4)(A), if the adjusted
price of a Post-Only Order would lock or cross a
non-displayed price on the respective Exchange’s
Book, the Post-Only Order would be posted in the
same manner as a Price to Comply Order. BX
Amendment No. 1 is available at: https://
www.sec.gov/comments/sr-bx-2016-046/bx20160461.pdf and Nasdaq Amendment No. 1 is available at:
https://www.sec.gov/comments/sr-nasdaq-2016111/nasdaq2016111-1.pdf. Because these
amendments are technical in nature and do not
materially alter the substance of the proposed rule
changes, they are not subject to notice and
comment.
5 See Letter from Joseph Saluzzi and Sal Arnuk,
Partners, Themis Trading LLC, to Brent J. Fields,
Secretary, Commission, dated October 10, 2016
(‘‘Themis Letter’’).
6 See Letter from Jeffrey S. Davis, Vice President
and Deputy General Counsel, The NASDAQ Stock
Market LLC, to Brent J. Fields, Secretary,
Commission, dated November 8, 2016 (‘‘Response
Letter’’).
7 For more details regarding the Exchanges’
proposals, see Nasdaq Notice and BX Notice, supra
note 3.
8 According to BX and Nasdaq Rules
4702(b)(4)(A), if a Post-Only Order would lock or
cross a Protected Quotation, the price of the Order
would first be adjusted. If the Order is Attributable,
its adjusted price would be one minimum price
increment lower than the current Best Offer (for
bids) or higher than the current Best Bid (for offers).
If the Order is not Attributable, its adjusted price
would be equal to the current Best Offer (for bids)
or the current Best Bid (for offers). However, the
Order would not post or execute until the Order,
as adjusted, is evaluated with respect to Orders on
the respective Exchange’s Book.
PO 00000
Frm 00132
Fmt 4703
Sfmt 4703
Under the proposals,9 if the adjusted
price of the Post-Only Order would lock
or cross a non-displayed price on the
respective Exchange’s Book, the PostOnly order would be posted in the same
manner as a Price to Comply Order.10
However, the Post Only Order would
execute:
• On Nasdaq if (i) it is priced below
$1.00 and the value of price
improvement associated with executing
against an Order on the Nasdaq Book (as
measured against the original limit price
of the Order) equals or exceeds the sum
of fees changed for such execution and
the value of any rebate that would be
provided if the Order posted to the
Nasdaq Book and subsequently
provided liquidity, or (ii) it is priced at
$1.00 or more and the value of price
improvement associated with executing
against an Order on the Nasdaq Book (as
measured against the original limit price
of the Order) equals or exceeds $0.01
per share; 11 and
• on BX, if (i) it is priced at $1.00 or
more,12 or (ii) it is priced below $1.00
and the value of price improvement
associated with executing against an
Order on the Exchange Book (as
measured against the original limit price
of the Order) equals or exceeds the sum
of fees charged for such execution and
the value of any rebate that would be
provided if the Order posted to the
Exchange Book and subsequently
provided liquidity.13
Currently, BX and Nasdaq Rules
4702(b)(4)(A) also provide that, if the
Post-Only Order would not lock or cross
a Protected Quotation but would lock or
cross an Order on the respective
Exchange’s Book, the Post Only Order
9 The Exchanges are also proposing conforming
changes throughout BX and Nasdaq Rules
4702(b)(4)(A) to reflect this change.
10 According to BX and Nasdaq Rules
4702(b)(1)(A), if the entered limit price of a Price
to Comply Order would lock or cross a Protected
Quotation and the Price to Comply Order could not
execute against an Order on the respective
Exchange’s Book at a price equal to or better than
the price of the Protected Quotation, the Price to
Comply Order will be displayed on the respective
Exchange’s Book at a price one minimum price
increment lower than the current Best Offer (for a
Price to Comply Order to buy) or higher than the
current Best Bid (for a Price to Comply Order to
sell), but will also be ranked on the respective
Exchange’s Book with a non-displayed price equal
to the current Best Offer (for a Price to Comply
Order to buy) or the current Best Bid (for a Price
to Comply Order to sell).
11 This behavior related to the execution of the
Post-Only Order is not changed by Nasdaq’s
proposal.
12 On BX, unlike on Nasdaq, executions in
securities priced at or above $1 result in rebates for
the accessor of liquidity and as such it is always
in the best interest of the incoming Post-Only Order
to execute in securities at or above $1.
13 This behavior related to the execution of the
Post-Only Order is not changed by BX’s proposal.
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]]>Agencies
[Federal Register Volume 81, Number 222 (Thursday, November 17, 2016)]
[Notices]
[Pages 81182-81184]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-27602]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-79291; File No. SR-NYSEArca-2016-144]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE
Arca Options Fee Schedule Effective November 3, 2016
November 10, 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 November 3, 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.
---------------------------------------------------------------------------
\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 the
Substance of the Proposed Rule Change
The Exchange proposes to amend the NYSE Arca Options Fee Schedule
(``Fee Schedule''). The Exchange proposes to implement the fee change
effective November 3, 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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of this filing is to amend the Fee Schedule effective
November 3, 2016. Specifically, the Exchange proposes to (i) modify the
qualification for Tier 6 of Customer and Professional Customer Monthly
Posting Credit Tiers and Qualifications in Penny Pilot Issues (the
``Posting Tiers''); and (ii) modify one aspect of the Customer and
Professional Customer Incentive Program.
Currently, to qualify for Tier 6 of the Posting Tiers, OTP Holders
and OTP Firms (``OTPs'') must execute at least 0.50% of Total Industry
Customer equity and ETF option ADV (``TCADV'') from Customer and
Professional Customer posted orders in all issues (``the options
component''), plus executed ADV of 0.70% of U.S. equity market share
posted and executed on NYSE Arca Equity Market (``the equity
component''). OTPs that achieve Tier 6 are eligible to receive a $0.48
credit applied to posted electronic Customer and Professional Customer
executions in Penny Pilot Issues.
In addition, the Customer and Professional Customer Incentive
Program (``the Incentive Program''), which provides OTPs six
alternatives to earn additional posting credits ranging from $0.01 to
$0.05, currently affords OTPs the ability to earn an additional $0.03
credit on Customer and Professional Customer Posting Credits by meeting
the same 0.70% minimum qualification of the equity component as set
forth in Tier 6.
The Exchange is proposing to modify Tier 6 of the Posting Tiers by
reducing the options component from 0.50% TCADV to 0.35% TCADV, while
increasing the threshold of the equity component from 0.70% to 0.80% of
U.S.
[[Page 81183]]
equity market share posted and executed on NYSE Arca Equity Market.
In addition, to maintain parity with the Incentive Program that
likewise offers a credit when an OTP meets the same 0.70% minimum
qualification of the equity component as set forth in current Tier 6,
the Exchange similarly proposes to increase this qualification basis.
Specifically, the Exchange proposes to increase the equity threshold
alternative from 0.70% to 0.80% of U.S. equity market share posted and
executed on NYSE Arca Equity Market qualification in order for OTPs to
qualify to earn an additional $0.03 credit.
The Exchange believes that the proposal to modify Tier 6 of the
Posting Tiers by reducing the option component, while increasing the
equity component would encourage greater participation on both the
options and equity exchanges. The Exchange likewise believes that the
proposed change to the Incentive Program would operate to maintain
parity with the similar, alternative incentives offered by the Exchange
and would also encourage participation in the NYSE Arca Equity Market.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\4\ in general, and furthers the
objectives of Sections 6(b)(4) and (5) of the Act,\5\ 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.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
The Exchange believes that the proposed to modifications to the
qualifications for Tier 6 of the Posting Tiers, and the similar
adjustment to the Incentive Program, are reasonable, equitable, and not
unfairly discriminatory because the changes are designed to attract
additional Customer and Professional Customer electronic equity and ETF
option volume to the Exchange, which would benefit all participants by
offering greater price discovery, increased transparency, and an
increased opportunity to trade on the Exchange. The Exchange believes
that adjusting the methods for achieving the credits available on the
Exchange (i.e., by reducing the qualification basis for the options
component, while increasing the qualification basis for the equity
component) is reasonable, equitable and not unfairly discriminatory
because it would encourage more OTPs to direct both options and equity
volume to the Exchange in an effort to qualify for the credits.
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,\6\ 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
purposes of the Act. Instead, the Exchange believes that the proposed
changes would continue to encourage competition, including by
attracting additional liquidity to the Exchange, which would continue
to make the Exchange a more competitive venue for, among other things,
order execution and price discovery. The Exchange does not believe that
the proposed change would impair the ability of any market participants
or competing order execution venues to maintain their competitive
standing in the financial markets.
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\6\ 15 U.S.C. 78f(b)(8).
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The Exchange notes that it operates in a highly competitive market
in which market participants can readily favor competing venues. In
such an environment, the Exchange must continually review, and consider
adjusting, its fees and credits to remain competitive with other
exchanges. 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 degree to which fee changes in this
market may impose any burden on competition is extremely limited. 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) \7\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \8\ thereunder, because it establishes a due, fee, or other charge
imposed by the Exchange.
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\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 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) \9\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\9\ 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-NYSEArca-2016-144 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-2016-144. 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
[[Page 81184]]
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-NYSEArca-2016-144, and should be submitted on or before
December 8, 2016.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-27602 Filed 11-16-16; 8:45 am]
BILLING CODE 8011-01-P
