Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Change Modifying the NYSE Amex Options Fee Schedule, 95691-95693 [2016-31310]
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Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Notices
sradovich on DSK3GMQ082PROD with NOTICES
subject to oversight and certain
approvals by the Funds’ Board,
including, among others, approval of the
interest rate formula and of the method
for allocating loans across Funds, as
well as review of the process in place to
evaluate the liquidity implications for
the Funds. A Fund’s aggregate
outstanding interfund loans will not
exceed 15% of its net assets, and the
Fund’s loans to any one Fund will not
exceed 5% of the lending Fund’s net
assets.3
4. Applicants assert that the facility
does not raise the concerns underlying
section 12(d)(1) of the Act given that the
Funds are part of the same group of
investment companies and there will be
no duplicative costs or fees to the
Funds.4 Applicants also assert that the
proposed transactions do not raise the
concerns underlying sections 17(a)(1),
17(a)(3), 17(d) and 21(b) of the Act as
the Funds would not engage in lending
transactions that unfairly benefit
insiders or are detrimental to the Funds.
Applicants state that the facility will
offer both reduced borrowing costs and
enhanced returns on loaned funds to all
participating Funds and each Fund
would have an equal opportunity to
borrow and lend on equal terms based
on an interest rate formula that is
objective and verifiable. With respect to
the relief from section 17(a)(2) of the
Act, applicants note that any collateral
pledged to secure an interfund loan
would be subject to the same conditions
imposed by any other lender to a Fund
that imposes conditions on the quality
of or access to collateral for a borrowing
(if the lender is another Fund) or the
same or better conditions (in any other
circumstance).5
5. Applicants also believe that the
limited relief from section 18(f)(1) of the
Act that is necessary to implement the
facility (because the lending Funds are
not banks) is appropriate in light of the
conditions and safeguards described in
the application and because the Funds
would remain subject to the
requirement of section 18(f)(1) that all
borrowings of a Fund, including
combined interfund loans and bank
borrowings, have at least 300% asset
coverage.
6. Section 6(c) of the Act permits the
Commission to exempt any persons or
transactions from any provision of the
Act if such exemption is necessary or
appropriate in the public interest and
consistent with the protection of
investors and the purposes fairly
intended by the policy and provisions of
the Act. Section 12(d)(1)(J) of the Act
provides that the Commission may
exempt any person, security, or
transaction, or any class or classes of
persons, securities, or transactions, from
any provision of section 12(d)(1) if the
exemption is consistent with the public
interest and the protection of investors.
Section 17(b) of the Act authorizes the
Commission to grant an order
permitting a transaction otherwise
prohibited by section 17(a) if it finds
that (a) the terms of the proposed
transaction are fair and reasonable and
do not involve overreaching on the part
of any person concerned; (b) the
proposed transaction is consistent with
the policies of each registered
investment company involved; and (c)
the proposed transaction is consistent
with the general purposes of the Act.
Rule 17d–1(b) under the Act provides
that in passing upon an application filed
under the rule, the Commission will
consider whether the participation of
the registered investment company in a
joint enterprise, joint arrangement or
profit sharing plan on the basis
proposed is consistent with the
provisions, policies and purposes of the
Act and the extent to which such
participation is on a basis different from
or less advantageous than that of the
other participants.
3 Under certain circumstances, a borrowing Fund
will be required to pledge collateral to secure the
loan.
4 Applicants state that the obligation to repay an
interfund loan could be deemed to constitute a
security for the purposes of sections 17(a)(1) and
12(d)(1) of the Act.
5 Applicants state that any pledge of securities to
secure an interfund loan could constitute a
purchase of securities for purposes of section
17(a)(2) of the Act.
December 21, 2016.
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For the Commission, by the Division of
Investment Management, under delegated
authority.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–31288 Filed 12–27–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–79651; File No. SR–
NYSEMKT–2016–121]
Self-Regulatory Organizations; NYSE
MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Change Modifying the NYSE Amex
Options Fee Schedule
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on December
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
PO 00000
Frm 00137
Fmt 4703
95691
15, 2016, NYSE MKT LLC (‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the 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 modify the
NYSE Amex Options Fee Schedule
(‘‘Fee Schedule’’). The Exchange
proposes to implement the fee change
effective December 15, 2016. The
proposed change is available on the
Exchange’s Web site at www.nyse.com,
at the principal office of the Exchange,
and at the Commission’s Public
Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this filing is to amend
Section III.C. of the Fee Schedule to
exempt Binary Return Derivatives
contracts (‘‘ByRDs’’) from the monthly
Rights Fees assessed on Specialists, eSpecialists, Directed Order Market
Markers (each a ‘‘DOMM’’). The
Exchange proposes to implement these
changes effective December 15, 2016.
The Exchange added rules related to
ByRDs in 2007 and re-launched trading
in ByRDs in March 2016.4 To encourage
4 The Exchange adopted ByRDs in 2007 and plans
to re-launch trading in ByRDs in March. See
Securities Exchange Act Release No. 56251 (August
14, 2007), 72 FR 46523 (August 20, 2007) (SR–
Amex–2004–27) (Order approving listing of Fixed
Return Options (‘‘FROs’’)); see also Securities
Exchange Act Release Nos. 71957 (April 16, 2014),
79 FR 22563 (April 22, 2014) (SR–NYSEMKT–
2014–06) (Order approving name change from FROs
Continued
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Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Notices
trading in ByRDs, the Exchange
currently exempts transactions in
ByRDs from all transactions fees and
credits.5 However, ByRDs are subject to
monthly Rights Fees.6 The Exchange
proposes to exempt ByRDs from all
Rights Fees, which should encourage
trading in ByRDs.7
The Exchange believes the proposed
treatment of ByRDs for purposes of the
Fee Schedule would further the
Exchange’s goal of introducing new
products to the marketplace by
encouraging trading in these products.
sradovich on DSK3GMQ082PROD with NOTICES
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,8 in general, and
furthers the objectives of Sections
6(b)(4) and (5) of the Act,9 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 the proposed
change is reasonable, equitable and not
unfairly discriminatory because the
Exchange’s treatment of ByRDs would
apply equally to all market participants
that opted to trade ByRDs. Further, the
proposed change is reasonable and does
not unfairly discriminate because
exempting ByRDs from monthly Rights
to Binary Return Derivatives (ByRDs) and re-launch
of these products, with certain modification, and
amending Obvious Errors rules to include ByRDs);
77014 (February 2, 2016), 81 FR 6566 (February 8,
2016) (SR–NYSEMKT–2016–16) (immediate
effectiveness filing amending amend certain of rules
related to ByRDs). ByRDs are European-style option
contracts on individual stocks, exchange-traded
funds (‘‘ETFs’’) and Section 107 Securities that have
a fixed return in cash based on a set strike price;
satisfy specified listing criteria; and may only be
exercised at expiration pursuant to the Rules of the
Options Clearing Corporation (the ‘‘OCC’’).
5 See Fee Schedule, Section I.A., n. 5 (exempting
ByRDs from all fees and credits for standard options
transactions), available here, https://
www.nyse.com/publicdocs/nyse/markets/amexoptions/NYSE_Amex_Options_Fee_Schedule.pdf.
6 The Exchange charges a monthly Rights Fee on
each issue in the allocation of an e-Specialist,
DOMM, and Specialist, which ranges from $50 to
$2,500 (absent any applicable discount) and is
based on the Average National Daily Customer
Contracts per issue. See id., Fee Schedule, Section
III.C. (e-Specialist, DOMM and Specialist Monthly
Rights Fees).
7 See proposed Fee Schedule, Section III.C. at n.
1 (stating that ByRDs are exempt from the Rights
Fees). The Exchange proposes to delete as obsolete
language from current note 1 to Section III.C.,
which provides that options listed before June 1,
2012 would be ‘‘grandfathered’’ for purposes of
certain Rights Fee. See id. The Exchange believes
this proposed change adds clarity and transparency
to the Fee Schedule, as any options series listed
before 2012 would have expired by now.
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(4) and (5).
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Fees would further the Exchange’s goal
of introducing new products to the
marketplace by encouraging trading in
these products. To the extent that the
proposed change incentivizes any
market participants to direct their order
flow to the Exchange, all market
participants would benefit from
increased liquidity and trading
opportunities on the Exchange.
The Exchange believes the proposed
change to remove obsolete language
from the Fee Schedule adds clarity and
transparency to the Fee Schedule,
which makes it easier for market
participants to comprehend.
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,10 the Exchange does not believe
that the proposed rule change would
impose any burden on competition that
is not necessary or appropriate in
furtherance of the purposes of the Act.
The Exchange believes that the
proposed change is pro-competitive as it
would further the Exchange’s goal of
introducing new products to the
marketplace and encouraging trading in
these products, which would in turn,
benefit market participants. To the
extent that this purpose is achieved, all
of the Exchange’s market participants
should benefit from the improved
market liquidity. Enhanced market
quality and increased transaction
volume that results from the anticipated
increase in order flow directed to the
Exchange will benefit all market
participants and improve competition
on the Exchange.
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. 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) 11 of the Act and
subparagraph (f)(2) of Rule 19b–4 12
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) 13 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–
NYSEMKT–2016–121 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–NYSEMKT–2016–121. 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
11 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
13 15 U.S.C. 78s(b)(2)(B).
12 17
10 15
PO 00000
U.S.C. 78f(b)(8).
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Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Notices
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
NYSEMKT–2016–121 and should be
submitted on or before January 18, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2016–31310 Filed 12–27–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–79636; File No. SRBatsBZX–2016–87]
Self-Regulatory Organizations; Bats
BZX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Amend the
Market Data Section of Its Fee
Schedule To Adopt Fees for BZX
Summary Depth and Amend Fees for
BZX Depth
sradovich on DSK3GMQ082PROD with NOTICES
December 21, 2016.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on December
14, 2016, Bats BZX Exchange, Inc.
(‘‘BZX’’ or the ‘‘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 Exchange has designated the
proposed rule change as one
establishing or changing a member due,
fee, or other charge imposed by the
Exchange under Section 19(b)(3)(A)(ii)
of the Act 3 and Rule 19b–4(f)(2)
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
1 15
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18:54 Dec 27, 2016
Jkt 241001
thereunder,4 which renders the
proposed rule change effective upon
filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange filed a proposal to
amend the Market Data section of its fee
schedule to: (i) Adopt fees for a new
market data product called BZX
Summary Depth; and (ii) amend the fees
for BZX Depth.
The text of the proposed rule change
is available at the Exchange’s Web site
at www.batstrading.com, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
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 amend the
Market Data section of its fee schedule
to: (i) Adopt fees for a new market data
product called BZX Summary Depth;
and (ii) amend the fees for BZX Depth.
BZX Summary Depth
BZX Summary Depth is a data feed
that will provide aggregated two-sided
quotations for all displayed orders
entered into the System 5 for up to five
(5) price levels for securities traded on
the Exchange and for which the
Exchange reports quotes under the
Consolidated Tape Association (‘‘CTA’’)
Plan or the Nasdaq/UTP Plan.6 BZX
4 17
CFR 240.19b–4(f)(2).
is defined as the ‘‘the electronic
communications and trading facility designated by
the Board through which securities orders of Users
Are consolidated for ranking, execution and, when
applicable, routing away.’’ See Exchange Rule
1.5(aa).
6 See Exchange Rule 11.22(m).
5 ‘‘System’’
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95693
Summary Depth will also contain the
individual last sale information, Market
Status, Trading Status, and Trade Break
messages. The individual last sale
information will include the price, size,
and time of execution. The last sale
message will also include the
cumulative number of shares executed
on the Exchange for that trading day.
The Exchange intends to begin to offer
BZX Summary Depth on January 3,
2017.7
The Exchange now proposes to amend
its fee schedule to incorporate fees for
distribution of BZX Summary Depth to
subscribers.8 The proposed fees include
the following, each of which are
described in detail below: (i)
Distribution Fees for both Internal and
External Distributors; 9 (ii) Usage Fees
for both Professional 10 and NonProfessional 11 Users; (iii) an Enterprise
Fee; and (iv) a Digital Media Enterprise
Fee.
Distribution Fees. As proposed, each
Internal Distributor that receives BZX
7 See Reminder: Bats Global Markets to Introduce
Bats Summary Depth Feeds on January 3, 2017,
https://cdn.batstrading.com/resources/release_
notes/2017/Reminder-Bats-Global-Markets-toIntroduce-Bats-Summary-Depth-Feeds-on-Jan-32017.pdf.
8 The Exchange notes that its affiliated exchanges,
Bats EDGX Exchange, Inc. (‘‘EDGX’’), Bats EDGA
Exchange, Inc. (‘‘EDGA’’) and Bats BYX Exchange,
Inc. (‘‘BYX’’, together with the Exchange, EDGX and
EDGA, the ‘‘Bats Exchanges’’), also intent to file
proposed rule changes with Commission to adopt
similar fees for their respective Summary Depth
market data product.
9 A ‘‘Distributor’’ is defined as ‘‘any entity that
receives the Exchange Market Data product directly
from the Exchange or indirectly through another
entity and then distributes it internally or externally
to a third party.’’ See the Exchange’s fee schedule
available at https://www.bats.com/us/equities/
membership/fee_schedule/bzx/. An ‘‘Internal
Distributor’’ is defined as ‘‘a Distributor that
receives the Exchange Market Data product and
then distributes that data to one or more Users
within the Distributor’s own entity.’’ Id. An
‘‘External Distributor’’ is defined as ‘‘a Distributor
that receives the Exchange Market Data product and
then distributes that data to a third party or one or
more Users outside the Distributor’s own entity.’’
Id.’’
10 A ‘‘Professional User’’ is defined as ‘‘any User
other than a Non-Professional User.’’ See the
Exchange’s fee schedule available at https://
www.bats.com/us/equities/membership/fee_
schedule/bzx/.
11 A ‘‘Non-Professional User’’ is defined as ‘‘a
natural person who is not: (i) Registered or qualified
in any capacity with the Commission, the
Commodity Futures Trading Commission, any state
securities agency, any securities exchange or
association, or any commodities or futures contract
market or association; (ii) engaged as an
‘‘investment adviser’’ as that term is defined in
Section 202(a)(11) of the Investment Advisers Act
of 1940 (whether or not registered or qualified
under that Act); or (iii) employed by a bank or other
organization exempt from registration under federal
or state securities laws to perform functions that
would require registration or qualification if such
functions were performed for an organization not so
exempt.’’ Id.
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]]>Agencies
[Federal Register Volume 81, Number 249 (Wednesday, December 28, 2016)]
[Notices]
[Pages 95691-95693]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-31310]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-79651; File No. SR-NYSEMKT-2016-121]
Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed Change Modifying the NYSE Amex
Options Fee Schedule
December 21, 2016.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that, on December 15, 2016, NYSE MKT LLC (``Exchange'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change as described in Items I, II, and III below, which Items have
been prepared by the self-regulatory organization. The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons.
---------------------------------------------------------------------------
\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 modify the NYSE Amex Options Fee Schedule
(``Fee Schedule''). The Exchange proposes to implement the fee change
effective December 15, 2016. The proposed change is available on the
Exchange's Web site at www.nyse.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of this filing is to amend Section III.C. of the Fee
Schedule to exempt Binary Return Derivatives contracts (``ByRDs'') from
the monthly Rights Fees assessed on Specialists, e-Specialists,
Directed Order Market Markers (each a ``DOMM''). The Exchange proposes
to implement these changes effective December 15, 2016.
The Exchange added rules related to ByRDs in 2007 and re-launched
trading in ByRDs in March 2016.\4\ To encourage
[[Page 95692]]
trading in ByRDs, the Exchange currently exempts transactions in ByRDs
from all transactions fees and credits.\5\ However, ByRDs are subject
to monthly Rights Fees.\6\ The Exchange proposes to exempt ByRDs from
all Rights Fees, which should encourage trading in ByRDs.\7\
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\4\ The Exchange adopted ByRDs in 2007 and plans to re-launch
trading in ByRDs in March. See Securities Exchange Act Release No.
56251 (August 14, 2007), 72 FR 46523 (August 20, 2007) (SR-Amex-
2004-27) (Order approving listing of Fixed Return Options
(``FROs'')); see also Securities Exchange Act Release Nos. 71957
(April 16, 2014), 79 FR 22563 (April 22, 2014) (SR-NYSEMKT-2014-06)
(Order approving name change from FROs to Binary Return Derivatives
(ByRDs) and re-launch of these products, with certain modification,
and amending Obvious Errors rules to include ByRDs); 77014 (February
2, 2016), 81 FR 6566 (February 8, 2016) (SR-NYSEMKT-2016-16)
(immediate effectiveness filing amending amend certain of rules
related to ByRDs). ByRDs are European-style option contracts on
individual stocks, exchange-traded funds (``ETFs'') and Section 107
Securities that have a fixed return in cash based on a set strike
price; satisfy specified listing criteria; and may only be exercised
at expiration pursuant to the Rules of the Options Clearing
Corporation (the ``OCC'').
\5\ See Fee Schedule, Section I.A., n. 5 (exempting ByRDs from
all fees and credits for standard options transactions), available
here, https://www.nyse.com/publicdocs/nyse/markets/amex-options/NYSE_Amex_Options_Fee_Schedule.pdf.
\6\ The Exchange charges a monthly Rights Fee on each issue in
the allocation of an e-Specialist, DOMM, and Specialist, which
ranges from $50 to $2,500 (absent any applicable discount) and is
based on the Average National Daily Customer Contracts per issue.
See id., Fee Schedule, Section III.C. (e-Specialist, DOMM and
Specialist Monthly Rights Fees).
\7\ See proposed Fee Schedule, Section III.C. at n. 1 (stating
that ByRDs are exempt from the Rights Fees). The Exchange proposes
to delete as obsolete language from current note 1 to Section
III.C., which provides that options listed before June 1, 2012 would
be ``grandfathered'' for purposes of certain Rights Fee. See id. The
Exchange believes this proposed change adds clarity and transparency
to the Fee Schedule, as any options series listed before 2012 would
have expired by now.
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The Exchange believes the proposed treatment of ByRDs for purposes
of the Fee Schedule would further the Exchange's goal of introducing
new products to the marketplace by encouraging trading in these
products.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\8\ in general, and furthers the
objectives of Sections 6(b)(4) and (5) of the Act,\9\ 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.
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(4) and (5).
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The Exchange believes the proposed change is reasonable, equitable
and not unfairly discriminatory because the Exchange's treatment of
ByRDs would apply equally to all market participants that opted to
trade ByRDs. Further, the proposed change is reasonable and does not
unfairly discriminate because exempting ByRDs from monthly Rights Fees
would further the Exchange's goal of introducing new products to the
marketplace by encouraging trading in these products. To the extent
that the proposed change incentivizes any market participants to direct
their order flow to the Exchange, all market participants would benefit
from increased liquidity and trading opportunities on the Exchange.
The Exchange believes the proposed change to remove obsolete
language from the Fee Schedule adds clarity and transparency to the Fee
Schedule, which makes it easier for market participants to comprehend.
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,\10\ the Exchange
does not believe that the proposed rule change would impose any burden
on competition that is not necessary or appropriate in furtherance of
the purposes of the Act. The Exchange believes that the proposed change
is pro-competitive as it would further the Exchange's goal of
introducing new products to the marketplace and encouraging trading in
these products, which would in turn, benefit market participants. To
the extent that this purpose is achieved, all of the Exchange's market
participants should benefit from the improved market liquidity.
Enhanced market quality and increased transaction volume that results
from the anticipated increase in order flow directed to the Exchange
will benefit all market participants and improve competition on the
Exchange.
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\10\ 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. 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) \11\ of the Act and subparagraph (f)(2) of Rule
19b-4 \12\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 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) \13\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\13\ 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-NYSEMKT-2016-121 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-NYSEMKT-2016-121. 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
[[Page 95693]]
proposed rule change between the Commission and any person, other than
those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549 on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-NYSEMKT-2016-121 and should
be submitted on or before January 18, 2017.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2016-31310 Filed 12-27-16; 8:45 am]
BILLING CODE 8011-01-P
