Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the NYSE Arca Equities Schedule of Fees and Charges for Exchange Services, 22360-22362 [2017-09715]
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22360
Federal Register / Vol. 82, No. 92 / Monday, May 15, 2017 / Notices
the amendments are designed to avoid
unfairly burdening affiliate groups that
have elected to clear through more than
one affiliated CDS Clearing Member, by
setting the relevant Firm Trade notional
limit at the CP affiliate group level. In
ICE Clear Europe’s view, the revised
approach appropriately incentivizes
CDS Clearing Member participation in
the end-of-day price submission
process, while balancing the risks of the
Firm Trade process fairly across
different CDS Clearing Members. The
amendments to the Disciplinary
Framework will also apply to all CDS
Clearing Members, and establish new
procedures for determinations that a
Clearing Member is subject to a cash
assessment as a result of a Missed
Submission. ICE Clear Europe does not
believe that the adoption of the
amendments will adversely affect
competition among Clearing Members,
or the ability of market participants to
clear contracts generally. The Clearing
House also does not believe that the
amendments will reduce access to
clearing CDS contracts or limit market
participants’ choices for clearing CDS.
The amended policies, like the
current policies, may result in certain
costs for Clearing Members that are
required to enter into Firm Trades as a
result of obvious errors in their
submissions or otherwise, or are subject
to cash assessments as a result of Missed
Submissions. ICE Clear Europe believes
that these costs are warranted to
enhance the integrity of the price
submission process, and are in any
event generally within the control of the
Clearing Member. As a result, ICE Clear
Europe does not believe the proposed
amendments impose any burden on
competition that is inappropriate in
furtherance of the purposes of the Act.
jstallworth on DSK7TPTVN1PROD with NOTICES
(C) Clearing Agency’s Statement on
Comments on the Proposed Rule
Change Received From Members,
Participants or Others
Written comments relating to the
proposed changes to the rules have not
been solicited or received. ICE Clear
Europe will notify the Commission of
any written comments received by ICE
Clear Europe.
III. Date of Effectiveness of the
Proposed Rule Change, Security-Based
Swap Submission and Advance Notice
and Timing for Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period
up to 90 days (i) as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or (ii) as to which
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13:51 May 12, 2017
Jkt 241001
the self-regulatory organization
consents, the Commission will:
(A) By order approve or disapprove
the proposed rule change or
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
The proposal shall not take effect
until all regulatory actions required
with respect to the proposal are
completed.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change, security-based swap submission
or advance notice 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–
ICEEU–2017–006 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–ICEEU–2017–006. 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, security-based swap submission
or advance notice that are filed with the
Commission, and all written
communications relating to the
proposed rule change, security-based
swap submission or advance notice
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
filings will also be available for
inspection and copying at the principal
office of ICE Clear Europe and on ICE
Clear Europe’s Web site at https://
PO 00000
Frm 00056
Fmt 4703
Sfmt 4703
www.theice.com/clear-europe/
regulation#rule-filings.
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–ICEEU–2017–006 and
should be submitted on or before June
5, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–09714 Filed 5–12–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–80632; File No. SR–
NYSEArca–2017–50]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending the NYSE Arca
Equities Schedule of Fees and
Charges for Exchange Services
May 9, 2017.
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 April 28,
2017, NYSE Arca, Inc. (the ‘‘Exchange’’
or ‘‘NYSE Arca’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the self-regulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
NYSE Arca Equities Schedule of Fees
and Charges for Exchange Services
(‘‘Fee Schedule’’). 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.
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
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Federal Register / Vol. 82, No. 92 / Monday, May 15, 2017 / 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
jstallworth on DSK7TPTVN1PROD with NOTICES
1. Purpose
The purpose of this filing is to amend
the Quoting and Depth Standard under
the recently adopted Exchange Traded
Fund Liquidity Provider Program (‘‘ELP
Program’’).4 The Exchange proposes to
implement the proposed fee change
effective May 1, 2017.
Pursuant to the ELP Program Filing,
the Exchange currently provides an
incremental credit of $0.0001 per share
to ETP Holders and Market Makers
(collectively, ‘‘ELPs’’) for providing
displayed liquidity that result in an
execution to ELPs that meet prescribed
quoting standards in NYSE-Arca listed
Tape B securities that have a
consolidated average daily volume
(‘‘CADV’’) in the previous month of less
than 250,000 shares (‘‘ELP Securities’’).
Pursuant to the ELP Program Filing,
beginning March 2017 and through
April 2017, an ELP that quotes at the
National Best Bid or Offer (‘‘NBBO’’) for
at least an average of 15% of the time
for the billing month in at least 50 ELP
Securities for each billing month
(‘‘Quoting Standard’’) 5 is paid the stated
incremental credit in their Tape B
executions that add liquidity.
In the ELP Program Filing, the
Exchange proposed that beginning May
1, 2017, in order for an ELP to qualify
4 See Securities Exchange Act Release No. 80258
(March 16, 2017), 82 FR 14775 (March 22, 2017)
(SR–NYSEArca–2017–28) (‘‘ELP Program Filing’’).
5 An ELP would meet the Quoting Standard if the
average of the percentage of time during regular
trading hours during which the ELP maintains a
quote at each of the NBB and NBO equals at least
15%. As an example, where the ELP maintains a
quote for any number of shares at the NBB for 20%
of the time during regular trading hours in at least
50 ELP Securities and maintains a quote for any
number of shares at the NBO for 10% of the time
during regular trading hours in the same ELP
Securities, the ELP would be deemed to be at the
NBBO for the required time period of 15% ((20%
+ 10%)/2).
VerDate Sep<11>2014
13:51 May 12, 2017
Jkt 241001
for the incremental credit, the ELP must,
in at least 50 ELP Securities:
• Quote at the NBBO for at least an
average of 15% of the time for the
billing month, and,
• Display at least 2,500 shares that are
priced no more than 2% away from the
NBBO at least 90% of the time for the
billing month (‘‘Quoting and Depth
Standard’’).
The Exchange proposes to require the
Quoting and Depth Standard to begin
June 1, 2017 instead of on May 1, 2017.
As a result, the Quoting Standard that
was implemented for March 2017 and
April 2017 will be extended through
May 2017. Thus, until June 1, 2017,
ELPs will continue to qualify for the
incremental credit by meeting just the
Quoting Standard. Beginning June 1,
2017, as noted above, ELPs will be
required to meet the Quoting and Depth
Standard to qualify for the incremental
credit. The Exchange is not proposing
any other change to the ELP Program.
The ELP Program is intended to
provide incentives for increased trading
in ELP Securities for market
participants. The Exchange believes the
proposed rule change will strengthen
market quality in ELP Securities. The
ELP Program is also intended to reward
liquidity providers who improve
displayed liquidity and the size of such
liquidity in the market. The Exchange
believes that the ELP Program will
encourage the additional utilization of,
and interaction with, the Exchange and
provide customers with the premier
venue for price discovery, liquidity,
competitive quotes and price
improvement.
The proposed changes are not
otherwise intended to address any other
issues, and the Exchange is not aware of
any problems that ETP Holders would
have in complying with the proposed
changes.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,6 in general, and
furthers the objectives of Sections
6(b)(4) and (5) of the Act,7 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 rule change would continue to
encourage increased participation by
ELPs in the trading of ETP Securities. In
6 15
7 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(4) and (5).
Frm 00057
Fmt 4703
Sfmt 4703
22361
particular, the Exchange believes that
extending the implementation date for
the Quoting and Depth Standard from
May 1, 2017 to June 1, 2017 would
provide ELPs with additional time to
implement the requirements associated
with the ELP credit while encouraging
ELPs to participate in the ELP Program.
The Exchange also believes that
extending the Quoting Standard through
May 2017 would continue to encourage
the submission of additional liquidity
by ETP Holders to a public exchange,
thereby promoting price discovery and
transparency and enhancing order
execution opportunities for all market
participants on the Exchange.
The Exchange believes the ELP
Program will continue to provide an
incentive for ELPs to quote and trade a
greater number of securities on the
Exchange and will generally allow the
Exchange and ELPs to better compete
for order flow and thus enhance
competition. Further, the ELP program
is intended to provide ELPs with an
incentive to increase displayed quoting
on NYSE Arca and thereby provide
liquidity and better quoting that
supports the quality of price discovery
and promotes market transparency. The
Exchange also believes that the
proposed incremental credit for ELPs
that meet the requirements of the ELP
Program is equitable and not unfairly
discriminatory because it would apply
uniformly to all ELPs.
As proposed, the ELP Program is
designed to enhance the Exchange’s
competitiveness as a listing venue and
to strengthen its market quality for
NYSE Arca-listed securities.
The Exchange believes that adopting
the Quoting and Depth Standard
beginning June 2017 instead of May
2017 is reasonable because the
additional requirement has not yet been
implemented by the Exchange so no
ETP Holder is or would be adversely
impacted. The Quoting and Depth
Standard would ensure that liquidity
displayed on the Exchange by ELPs is
available for a greater period of time
during the trading day to provide
market participants an adequate
opportunity to transact against such
liquidity. The Exchange also believes
that extending the Quoting Standard
through May 2017 is reasonable in order
for the Exchange to continue providing
ELPs with the incremental credit
associated with the ELP Program. The
Exchange believes that adopting the
Quoting and Depth Standard beginning
June 2017 and extending the Quoting
Standard through May 2017 is equitable
and not unfairly discriminatory because
the proposed changes would apply
uniformly to all ELPs.
E:\FR\FM\15MYN1.SGM
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22362
Federal Register / Vol. 82, No. 92 / Monday, May 15, 2017 / Notices
B. Self-Regulatory Organization’s
Statement on Burden on Competition
In accordance with Section 6(b)(8) of
the Act,8 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. The
proposed rule change is intended to
adopt the Quoting and Depth Standard
in June 2017 rather than in May 2017,
as was originally proposed in the ELP
Program Filing, while extending the
current Quoting Standard through May
2017.
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) 9 of the Act and
subparagraph (f)(2) of Rule 19b–4 10
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.
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
jstallworth on DSK7TPTVN1PROD with NOTICES
• 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–2017–50 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
U.S.C. 78f(b)(8).
9 15 U.S.C. 78s(b)(3)(A).
10 17 CFR 240.19b–4(f)(2).
13:51 May 12, 2017
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–09715 Filed 5–12–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–520, OMB Control No.
3235–0577]
Proposed Collection; Comment
Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE., Washington, DC
20549–2736
Extension:
Rule 30b1–5
8 15
VerDate Sep<11>2014
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSEArca–2017–50. This
file number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
NYSEArca–2017–50 and should be
submitted on or before June 5, 2017.
11 17
Jkt 241001
PO 00000
CFR 200.30–3(a)(12).
Frm 00058
Fmt 4703
Sfmt 4703
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission (the
‘‘Commission’’) is soliciting comments
on the collection of information
summarized below. The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget (‘‘OMB’’) for
extension and approval.
Rule 30b1–5 (17 CFR 270.30b1–5)
under the Investment Company Act of
1940 (15 U.S.C. 80a–1 et seq.) (the
‘‘Investment Company Act’’) requires
registered management investment
companies, other than small business
investment companies registered on
Form N–5 (17 CFR 239.24 and 274.5)
(‘‘funds’’), to file a quarterly report via
the Commission’s EDGAR system on
Form N–Q (17 CFR 249.332 and
274.130), not more than sixty calendar
days after the close of each first and
third fiscal quarter, containing their
complete portfolio holdings. The
purpose of the collection of information
required by rule 30b1–5 is to meet the
disclosure requirements of the
Investment Company Act and to provide
investors with information necessary to
evaluate an interest in the fund by
improving the transparency of
information about the fund’s portfolio
holdings.
The Commission estimates that there
are 2,380 management investment
companies, with a total of
approximately 11,757 portfolios, that
are governed by the rule. For purposes
of this analysis, the burden associated
with the requirements of rule 30b1–5
has been included in the collection of
information requirements of Form N–Q,
rather than the rule.
The collection of information under
rule 30b1–5 is mandatory. The
information provided under rule 30b1–
5 is not kept confidential. An agency
may not conduct or sponsor, and a
person is not required to respond to, a
collection of information unless it
displays a currently valid OMB control
number.
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information will have practical utility;
(b) the accuracy of the agency’s estimate
of the burden of the collection of
information; (c) ways to enhance the
quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or other forms of information
E:\FR\FM\15MYN1.SGM
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Agencies
[Federal Register Volume 82, Number 92 (Monday, May 15, 2017)]
[Notices]
[Pages 22360-22362]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-09715]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-80632; File No. SR-NYSEArca-2017-50]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending the NYSE
Arca Equities Schedule of Fees and Charges for Exchange Services
May 9, 2017.
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 April 28, 2017, NYSE Arca, Inc. (the ``Exchange'' or
``NYSE Arca'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend the NYSE Arca Equities Schedule of
Fees and Charges for Exchange Services (``Fee Schedule''). 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 22361]]
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 the Quoting and Depth
Standard under the recently adopted Exchange Traded Fund Liquidity
Provider Program (``ELP Program'').\4\ The Exchange proposes to
implement the proposed fee change effective May 1, 2017.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 80258 (March 16,
2017), 82 FR 14775 (March 22, 2017) (SR-NYSEArca-2017-28) (``ELP
Program Filing'').
---------------------------------------------------------------------------
Pursuant to the ELP Program Filing, the Exchange currently provides
an incremental credit of $0.0001 per share to ETP Holders and Market
Makers (collectively, ``ELPs'') for providing displayed liquidity that
result in an execution to ELPs that meet prescribed quoting standards
in NYSE-Arca listed Tape B securities that have a consolidated average
daily volume (``CADV'') in the previous month of less than 250,000
shares (``ELP Securities''). Pursuant to the ELP Program Filing,
beginning March 2017 and through April 2017, an ELP that quotes at the
National Best Bid or Offer (``NBBO'') for at least an average of 15% of
the time for the billing month in at least 50 ELP Securities for each
billing month (``Quoting Standard'') \5\ is paid the stated incremental
credit in their Tape B executions that add liquidity.
---------------------------------------------------------------------------
\5\ An ELP would meet the Quoting Standard if the average of the
percentage of time during regular trading hours during which the ELP
maintains a quote at each of the NBB and NBO equals at least 15%. As
an example, where the ELP maintains a quote for any number of shares
at the NBB for 20% of the time during regular trading hours in at
least 50 ELP Securities and maintains a quote for any number of
shares at the NBO for 10% of the time during regular trading hours
in the same ELP Securities, the ELP would be deemed to be at the
NBBO for the required time period of 15% ((20% + 10%)/2).
---------------------------------------------------------------------------
In the ELP Program Filing, the Exchange proposed that beginning May
1, 2017, in order for an ELP to qualify for the incremental credit, the
ELP must, in at least 50 ELP Securities:
Quote at the NBBO for at least an average of 15% of the
time for the billing month, and,
Display at least 2,500 shares that are priced no more than
2% away from the NBBO at least 90% of the time for the billing month
(``Quoting and Depth Standard'').
The Exchange proposes to require the Quoting and Depth Standard to
begin June 1, 2017 instead of on May 1, 2017. As a result, the Quoting
Standard that was implemented for March 2017 and April 2017 will be
extended through May 2017. Thus, until June 1, 2017, ELPs will continue
to qualify for the incremental credit by meeting just the Quoting
Standard. Beginning June 1, 2017, as noted above, ELPs will be required
to meet the Quoting and Depth Standard to qualify for the incremental
credit. The Exchange is not proposing any other change to the ELP
Program.
The ELP Program is intended to provide incentives for increased
trading in ELP Securities for market participants. The Exchange
believes the proposed rule change will strengthen market quality in ELP
Securities. The ELP Program is also intended to reward liquidity
providers who improve displayed liquidity and the size of such
liquidity in the market. The Exchange believes that the ELP Program
will encourage the additional utilization of, and interaction with, the
Exchange and provide customers with the premier venue for price
discovery, liquidity, competitive quotes and price improvement.
The proposed changes are not otherwise intended to address any
other issues, and the Exchange is not aware of any problems that ETP
Holders would have in complying with the proposed changes.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\6\ in general, and furthers the
objectives of Sections 6(b)(4) and (5) of the Act,\7\ 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.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
The Exchange believes that the proposed rule change would continue
to encourage increased participation by ELPs in the trading of ETP
Securities. In particular, the Exchange believes that extending the
implementation date for the Quoting and Depth Standard from May 1, 2017
to June 1, 2017 would provide ELPs with additional time to implement
the requirements associated with the ELP credit while encouraging ELPs
to participate in the ELP Program. The Exchange also believes that
extending the Quoting Standard through May 2017 would continue to
encourage the submission of additional liquidity by ETP Holders to a
public exchange, thereby promoting price discovery and transparency and
enhancing order execution opportunities for all market participants on
the Exchange.
The Exchange believes the ELP Program will continue to provide an
incentive for ELPs to quote and trade a greater number of securities on
the Exchange and will generally allow the Exchange and ELPs to better
compete for order flow and thus enhance competition. Further, the ELP
program is intended to provide ELPs with an incentive to increase
displayed quoting on NYSE Arca and thereby provide liquidity and better
quoting that supports the quality of price discovery and promotes
market transparency. The Exchange also believes that the proposed
incremental credit for ELPs that meet the requirements of the ELP
Program is equitable and not unfairly discriminatory because it would
apply uniformly to all ELPs.
As proposed, the ELP Program is designed to enhance the Exchange's
competitiveness as a listing venue and to strengthen its market quality
for NYSE Arca-listed securities.
The Exchange believes that adopting the Quoting and Depth Standard
beginning June 2017 instead of May 2017 is reasonable because the
additional requirement has not yet been implemented by the Exchange so
no ETP Holder is or would be adversely impacted. The Quoting and Depth
Standard would ensure that liquidity displayed on the Exchange by ELPs
is available for a greater period of time during the trading day to
provide market participants an adequate opportunity to transact against
such liquidity. The Exchange also believes that extending the Quoting
Standard through May 2017 is reasonable in order for the Exchange to
continue providing ELPs with the incremental credit associated with the
ELP Program. The Exchange believes that adopting the Quoting and Depth
Standard beginning June 2017 and extending the Quoting Standard through
May 2017 is equitable and not unfairly discriminatory because the
proposed changes would apply uniformly to all ELPs.
[[Page 22362]]
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\8\ 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. The proposed rule change is intended to adopt the
Quoting and Depth Standard in June 2017 rather than in May 2017, as was
originally proposed in the ELP Program Filing, while extending the
current Quoting Standard through May 2017.
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\8\ 15 U.S.C. 78f(b)(8).
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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) \9\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \10\ thereunder, because it establishes a due, fee, or other charge
imposed by the Exchange.
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 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.
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-2017-50 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-2017-50. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549 on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-NYSEArca-2017-50 and should
be submitted on or before June 5, 2017.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-09715 Filed 5-12-17; 8:45 am]
BILLING CODE 8011-01-P