Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Change To Adopt Transaction Fees in Connection With the Exchange's Transition to a Fully-Automated Cash Equities Market, 36012-36017 [2017-16208]
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Federal Register / Vol. 82, No. 147 / Wednesday, August 2, 2017 / Notices
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–
NYSEAMER–2017–01 and should be
submitted on or before August 23, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–16212 Filed 8–1–17; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–81228; File No. SR–
NYSEMKT–2017–43]
Self-Regulatory Organizations; NYSE
MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Change To Adopt Transaction Fees in
Connection With the Exchange’s
Transition to a Fully-Automated Cash
Equities Market
July 27, 2017.
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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 July 19,
2017, NYSE MKT LLC (the ‘‘Exchange’’
or ‘‘NYSE MKT’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to adopt
transaction fees in connection with the
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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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
BILLING CODE 8011–01–P
17 17
Exchange’s transition to a fullyautomated cash equities market. The
Exchange proposes to implement the
rule change on July 24, 2017. 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.
1. Purpose
On January 29, 2015, the Exchange
announced the implementation of Pillar,
which is an integrated trading
technology platform designed to use a
single specification for connecting to the
equities and options markets operated
by the Exchange and its affiliates, NYSE
Arca, Inc. (‘‘NYSE Arca’’) and New York
Stock Exchange LLC (‘‘NYSE’’).4 NYSE
Arca Equities, Inc. (‘‘NYSE Arca
Equities),5 which operates the cash
equities trading platform for NYSE Arca,
was the first trading system to migrate
to Pillar.6
4 See Trader Update dated January 29, 2015,
available here: https://www.nyse.com/traderupdate/history#13517.
5 NYSE Arca Equities is a wholly-owned
corporation of NYSE Arca and operates as a facility
of NYSE Arca.
6 NYSE Arca filed four rule proposals in
connection with the NYSE Arca implementation of
Pillar. See Securities Exchange Act Release Nos.
74951 (May 13, 2015), 80 FR 28721 (May 19, 2015)
(Notice) and 75494 (July 20, 2015), 80 FR 44170
(July 24, 2015) (SR–NYSEArca–2015–38) (Approval
Order of NYSE Arca Pillar I Filing, adopting rules
for Trading Sessions, Order Ranking and Display,
and Order Execution); Securities Exchange Act
Release Nos. 75497 (July 21, 2015), 80 FR 45022
(July 28, 2015) (Notice) and 76267 (October 26,
2015), 80 FR 66951 (October 30, 2015) (SR–
NYSEArca–2015–56) (Approval Order of NYSE
Arca Pillar II Filing, adopting rules for Orders and
Modifiers and the Retail Liquidity Program);
Securities Exchange Act Release Nos. 75467 (July
16, 2015), 80 FR 43515 (July 22, 2015) (Notice) and
76198 (October 20, 2015), 80 FR 65274 (October 26,
2015) (SR–NYSEArca–2015–58) (Approval Order of
NYSE Arca Pillar III Filing, adopting rules for
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To effect its transition to Pillar, the
Exchange adopted the rule numbering
framework of the NYSE Arca Equities,
Inc. (‘‘NYSE Arca Equities’’) rules for
Exchange cash equities trading on the
Pillar trading platform.7 The Exchange’s
trading rules for cash equity trading on
Pillar are based on the trading rules of
NYSE Arca Equities.8 As described in
the Trading Rules Filing, with Pillar, the
Exchange will transition its cash
equities trading platform from a Floorbased market with a parity allocation
model to a fully automated price-time
priority allocation model that trades all
NMS Stocks.
In connection with this transition, the
Exchange proposes to amend its Price
List to adopt a new pricing model for
trading on the Pillar platform.
The proposed changes would apply to
transactions executed in all trading
sessions in securities priced at or above
and below $1.00.
The Exchange proposes to implement
these changes effective July 24, 2017.
Proposed Rule Change
The Exchange proposes the following
transaction fees for trading on its Pillar
trading platform.
The Exchange also proposes to add
the following legend immediately before
those current fees and credits in the
Trading Halts, Short Sales, Limit Up-Limit Down,
and Odd Lots and Mixed Lots); and Securities
Exchange Act Release Nos. 76085 (October 6, 2015),
80 FR 61513 (October 13, 2015) (Notice) and 76869
(January 11, 2016), 81 FR 2276 (January 15, 2016)
(SR–NYSEArca–2015–86) (Approval Order of NYSE
Arca Pillar IV Filing, adopting rules for Auctions).
7 See Securities Exchange Act Release No. 79242
(November 4, 2016), 81 FR 79081 (November 10,
2016) (SR–NYSEMKT–2016–97) (Notice and Filing
of Immediate Effectiveness of Proposed Rule
Change) (the ‘‘Framework Filing’’). The rules
applicable to cash equities trading on Pillar are
denoted with the letter ‘‘E’’. Additionally, the
Exchange filed a proposed rule change to support
Exchange trading of securities listed on other
national securities exchanges on an unlisted trading
privileges basis, including Exchange Traded
Products (‘‘ETP’’) listed on other exchanges. See
Securities Exchange Act Release No. 79400
(November 25, 2016), 81 FR 86750 (December 1,
2016) (SR–NYSEMKT–2016–103) (Notice) (the
‘‘ETP Listing Rules Filing’’).
8 See Securities Exchange Act Release Nos. 80590
(May 4, 2017), 82 FR 21843 (May 10, 2017)
(Approval Order) and 79993 (February 9, 2017), 82
FR 10814 (February 15, 2017) (SR–NYSEMKT–
2017–01) (Notice) (‘‘Trading Rules Filing’’). The
Exchange also has established market maker
obligations when trading on the Pillar trading
platform. See Securities Exchange Act Release No.
80577 (May 2, 2017), 82 FR 21446 (May 8, 2017)
(SR–NYSEMKT–2017–04) (Approval Order) (‘‘DMM
Obligations Filing’’). In addition, the Exchange will
introduce a delay mechanism on Pillar that will add
the equivalent of 350 microseconds of latency to
inbound and outbound order messages. See
Securities Exchange Act Release Nos. 80700 (May
16, 2017), 82 FR 23381 (May 22, 2017) (SR–
NYSEMKT–2017–05) (Approval Order) and 79998
(February 9, 2017), 82 FR 10828 (February 15, 2017)
(SR–NYSEMKT–2017–05) (Notice).
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current fee schedule that would no
longer be applicable when trading on
the Pillar platform begins: ‘‘The
following Fees and Credits are not
Applicable to Trading on the Pillar
Trading Platform.’’ The Exchange
believes that the proposed legend would
clarify which fees and credits in the
current fee schedule would not be
applicable to trading on the Pillar
platform, and thus promote
transparency regarding which rules
would govern trading on the Exchange
once it transitions to Pillar.
General Information Applicable to the
Price List
The Exchange proposes to summarize
general information applicable to fees
for the Pillar trading platform in three
bullets under the first heading in the
Price List titled ‘‘Pillar Trading
Platform.’’
The first bullet would provide that
rebates are indicated by parentheses.
The second bullet would provide that,
for purposes of determining transaction
fees and credits based on requirements
based on quoting levels, average daily
volume (‘‘ADV’’), and consolidated ADV
(‘‘CADV’’), the Exchange may exclude
shares traded any day that (1) the
Exchange is not open for the entire
trading day and/or (2) a disruption
affects an Exchange system that lasts for
more than 60 minutes during regular
trading hours. The second proposed
bullet would reproduce the language in
footnote 6 of the current Price List.
Finally, the Exchange would state that
Electronic Designated Market Maker
(‘‘eDMM’’) 9 liquidity credits based on
quoting in Exchange-listed securities in
the current month will include
scheduled early closing days but will
not include days involving one or both
of the events described in proposed
bullet two described above. Once again,
the language on the third proposed
bullet would reproduce language in
footnote 7 of the current Price List.
Transaction Fees
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The Exchange proposes the following
transactions fees for all transactions
other than transactions by an eDMM in
securities assigned to an eDMM under
heading I titled ‘‘Transaction Fees (other
than for Transactions by an eDMM in
Securities Assigned to an eDMM)’’:
Liquidity Adding Displayed Order Fees
The Exchange does not propose to
charge a fee for executions on the
Exchange of displayed orders that add
liquidity to the Exchange. The proposal
9 See
note 10, infra.
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would apply to securities priced at or
above $1.00 as well as below $1.00.
Liquidity Adding Non-Displayed Order
Fees
For securities priced at or above
$1.00, the Exchange proposes to charge
$0.0002 per share for executions on the
Exchange of non-displayed orders that
add liquidity to the Exchange.
For securities priced below $1.00, the
Exchange proposes to charge 0.25% of
the total dollar value of the transaction
for executions on the Exchange of nondisplayed orders that add liquidity to
the Exchange.
Liquidity Removing Order Fees
The Exchange proposes to charge
$0.0002 per share for securities priced at
or above $1.00 and 0.25% of the total
dollar value of the transaction for
securities priced below $1.00 for all
executions on the Exchange that remove
liquidity from the Exchange. As noted
below, the same fees would apply to
eDMM transactions that remove
liquidity from the Exchange.
Executions at the Open and Close
For securities priced at or above $1.00
as well as below $1.00, the Exchange
proposes to charge a fee of $0.0005 per
share for executions at the open and
close.
eDMM Fees and Credits
Following the transition to Pillar,
Exchange DMMs will be electronic
access only,10 and the Exchange
proposes to refer to them as ‘‘eDMMs’’
in the Price List and in this Filing. The
Exchange proposes new fees and credits
applicable to eDMM on transactions in
securities assigned to the eDMM under
heading II in the Price List titled ‘‘Fees
and Credits Applicable to eDMMs on
Transactions in Securities Assigned to
an eDMM.’’
Immediately below the new proposed
heading, the Exchange proposes to
summarize certain general information
applicable to eDMM fees and credits in
three introductory bullets.
The first bullet would provide that,
unless an eDMM qualifies for a higher
10 See DMM Obligations Filing, 82 FR at 21446.
In addition, because DMMs in Pillar will not be
Floor-based individuals who operate within a DMM
unit of a member organization, the Exchange will
not assign securities at the natural person level and
will not require DMMs to facilitate the opening,
reopening, or closing of assigned Exchange-listed
securities. Further, the DMM rules do not entitle eDMMs to a parity allocation of executions, and also
would not subject DMMs to heightened capital
requirements. Finally, DMMs would continue to be
subject to rules governing allocation of securities
and combination of DMM units. See generally id.
The registration and obligations of DMMs are set
forth in Rule 7.24E.
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36013
rebate, eDMMs in NYSE American 11listed securities will receive the
specified rebates based on the specified
quoting requirement for securities at or
above $1.00.
The second bullet would define ‘‘Core
Trading Hours’’ to mean the hours of
9:30 a.m. Eastern Time through 4:00
p.m. Eastern Time or such other hours
as may be determined by the Exchange
from time to time. The proposed bullet
is consistent with Rule 1.1E(j), which
defines ‘‘Core Trading Hours.’’
Finally, the third bullet would
provide that, for each eDMM to qualify
for the specified credits, each eDMM
must meet the heightened quoting
obligations set forth in Rule 7.24E(c).12
The Exchange proposes three new
subheadings A through C setting forth
eDMM transaction fee and credits,
eDMM monthly credits, and market data
revenue.
Transaction Fees and Credits
Beneath a new subheading A titled
‘‘Transaction Fees and Credits,’’ the
Exchange would summarize eDMM fees
and credits for transactions that (1) add
liquidity to the Exchange, (2) remove
liquidity from the Exchange, and (3) for
executions at the open and close of
trading, as follows:
For transactions in securities with a
price at or above $1.00, the Exchange
proposes a rebate to eDMMs of $0.0045
per share for displayed transactions that
add liquidity to the Exchange.
The Exchange does not propose to
charge for non-displayed transactions
that add liquidity to the Exchange in
securities with a price at or above $1.00.
For transactions in securities with a
price below $1.00, the Exchange
proposes a rebate of .25% of total dollar
value for displayed transactions that
add liquidity to the Exchange.
11 Effective on or before July 24, 2017, the
Exchange’s name will change to NYSE American
LLC. The Exchange has filed to amend, among other
documents, the Price List to reflect the name
change. See Securities Exchange Act Release No.
80283 (March 21, 2017), 82 FR 15244 (March 21,
2017). Because the proposed amendments to the
Price List described in this proposed rule change
will be effective after the Exchange changes its
name, the Exchange proposes to reflect the new
name in the proposed Price List.
12 Rule 7.24E(c) describes the obligations of
DMMs on the Pillar Trading Platform and provides
that, in addition to meeting the Market Maker
obligations set forth in Rule 7.23E, DMMs are
required to maintain a bid or an offer at the
National Best Bid and National Best Offer (‘‘NBBO’’
or ‘‘inside’’) at least 25% of the day as measured
across all Exchange-listed securities that have been
assigned to the DMM. Rule 7.24E(c) further
provides that time at the inside is calculated as the
average of the percentage of time the DMM unit has
a bid or offer at the inside and that orders entered
by the DMM that are not displayed would not be
included in the inside quote calculation.
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The Exchange does not propose to
charge for non-displayed transactions
that add liquidity to the Exchange in
securities with a price below $1.00.
The Exchange does not propose to
charge for executions at the open and
close for securities priced at or above
$1.00 as well as below $1.00.
The Exchange proposes to charge
$0.0002 per share for securities priced at
or above $1.00 and 0.25% of the total
dollar value of the transaction for
securities priced below $1.00 for all
eDMM executions on the Exchange that
remove liquidity from the Exchange.
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Monthly Credits
Beneath a new subheading B titled
‘‘Monthly Credits,’’ the Exchange
proposes that, in addition to the current
rate on transactions, the Exchange
would provide additional per security
credits for eDMMs if certain
requirements are met.
First, the Exchange proposes a $100
per security credit in a month that a
security is assigned to the eDMM for
securities whose CADV during the
previous month would be less than
50,000 shares per day and for which the
eDMM quotes at the NBBO at least 25%
of the time during Core Trading Hours
for that symbol in that month. The
credit would be prorated to the number
of trading days in a month that a
security is assigned to the eDMM.
Second, in addition to the current rate
on transactions and the $100 monthly
credit, the Exchange proposes to
provide a $500 per security credit in a
month that a security is assigned to an
eDMM, for each security for which the
eDMM quotes at the NBBO at least 25%
of the time during Core Trading Hours
for that symbol in that month up to a
maximum of 20 symbols per month per
eDMM.
Market Data Revenue
Under new heading C titled ‘‘Market
Data Revenue,’’ the Exchange proposes
that, for securities with a trading price
either at, above or below $1.00, each
eDMM would receive all of the market
data quote revenue (the ‘‘Quoting
Share’’) in their assigned securities
received by the Exchange from the
Consolidated Tape Association under
the Revenue Allocation Formula of
Regulation NMS in any month in which
the eDMM quotes at the NBBO at least
25% of time during Core Trading Hours.
Routing Fees for All ETP Holders
Under new heading III titled ‘‘Fees for
Routing for all ETP Holders,’’ the
Exchange proposes the following fees
for routing, which would be applicable
to all orders that are routed, including
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orders from eDMMs in their assigned
NYSE American-listed securities.
For executions in securities with a
price at or above $1.00 that route to and
execute on Away Markets,13 the
Exchange proposes to charge a fee of
$0.0016 per share for executions in an
Away Market auction, and a fee of
$0.0030 for all other executions.
For securities priced below $1.00 that
route to and execute on Away Markets,
the Exchange proposes to charge a fee of
0.30% of the total dollar value of the
transaction for executions in an Away
Market auction as well as all other
executions.
Off-Hours Trading Facility
Following the transition to Pillar,
trading on the Exchange’s Off-Hours
Trading Facility will be governed by
Rule 7.39E for trading in aggregate-price
coupled orders, which is also known as
‘‘Crossing Session II.’’ The Exchange
currently charges a fee of $0.0004 per
share for multiple stock aggregate priced
buy and sell orders in Crossing Session
II. Fees for such executions are currently
capped at $100,000 per month per
member organization.
The Exchange proposes to retain this
fee structure without any substantive
differences for aggregate-price coupled
orders executed in the Off-Hours
Trading Facility described in Rule
7.39E. Because such trading would be
pursuant to a Pillar rule, the Exchange
proposes to set forth the fee under a new
heading IV titled ‘‘Fees for Off-Hours
Trading Facility’’ in the proposed Price
List and omit any reference to Crossing
Session II.
Port Fees
Under proposed new heading V titled
‘‘Port Fees,’’ the Exchange proposes fees
for the use of ports that (1) that provide
connectivity to the Exchange’s trading
systems (i.e., ports for entry of orders
and/or quotes (‘‘order/quote entry
ports’’)), and (2) allow for the receipt of
‘‘drop copies’’ of order or transaction
information (‘‘drop copy ports’’ and,
together with order/quote entry ports,
‘‘ports’’).14
13 The term ‘‘Away Market’’ is defined in Rule
1.1E(ff) to mean any exchange, alternative trading
system (‘‘ATS’’) or other broker-dealer (1) with
which the Exchange maintains an electronic
linkage, and (2) that provides instantaneous
responses to orders routed from the Exchange.
14 Firms receive confirmations of their orders and
receive execution reports via the order/quote entry
port that is used to enter the order or quote. A ‘‘drop
copy’’ contains redundant information that a firm
chooses to have ‘‘dropped’’ to another destination
(e.g., to allow the firm’s back office and/or
compliance department, or another firm—typically
the firm’s clearing broker—to have immediate
access to the information). Drop copies can only be
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For order/quote entry ports, the
Exchange proposes to charge $250 per
port per month. The fee would apply to
all market participants. The Exchange
proposes not to charge for order/quote
entry ports until October 1, 2017.
Thereafter, the Exchange proposes to
implement the $250 per port per month
fee.
Similarly, the Exchange proposes to
charge $250 per drop copy port per
month. The fee would apply to all
market participants. Additionally, the
Exchange proposes to specify that only
one fee per drop copy port would apply,
even if the port receives drop copies
from multiple order/quote entry ports.
The Exchange proposes not to charge
for drop copy ports until October 1,
2017. Thereafter, the Exchange proposes
to implement the $250 per port per
month fee.
Equity Trading Permit (‘‘ETP’’) Fee
The Exchange proposes a new
heading VI titled ‘‘ETP Fee.’’ The
Exchange does not propose to charge a
fee to obtain an ETP.15
*
*
*
*
*
The proposed changes are not
otherwise intended to address any other
issues, and the Exchange is not aware of
any problems that member
organizations would have in complying
with the proposed change.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,16 in general, and
furthers the objectives of Sections
6(b)(4) and 6(b)(5) of the Act,17 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.
Transaction Fees
Liquidity Adding Displayed Order Fees
The Exchange believes that not
charging a fee for liquidity adding
displayed orders would encourage price
discovery and enhance market quality
by encouraging more competitive
pricing of displayed orders. The
Exchange believes that not charging a
fee for liquidity adding displayed orders
is equitable and not unfairly
discriminatory because it is designed to
facilitate execution of, and enhance
sent via a drop copy port. Drop copy ports cannot
be used to enter orders and/or quotes.
15 See Rule 1.1E(m) (definition of ETP).
16 15 U.S.C. 78f(b).
17 15 U.S.C. 78f(b)(4) & (5).
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eDMM Fees and Credits
trading opportunities for, displayable
orders, thereby further incentivizing
entry of displayed orders on the
Exchange.
Liquidity Adding Non-Displayed Order
Fees
The Exchange believes that charging
$0.0002 per share for securities priced at
or above $1.00 and 0.25% of the total
dollar value of the transaction for
securities priced below $1.00 for
executions on the Exchange of nondisplayed orders that add liquidity to
the Exchange is reasonable and not
unfairly discriminatory because the
proposed rate would be lower than the
fee charged by other exchanges.18 The
Exchange further believes that the
proposed fee increase is equitable and
not unfairly discriminatory because it
would apply to all non-displayed orders
that add liquidity to the Exchange.
Liquidity Removing Order Fees
The Exchange believes that charging
$0.0002 per share for securities priced at
or above $1.00 and 0.25% of the total
dollar value of the transaction for
securities priced below $1.00 for
executions on the Exchange that remove
liquidity, including eDMM transactions,
is reasonable and consistent with the
Act. The Exchange notes that the
proposed fees are less than the
comparable fees on other exchanges.19
Executions at the Open and Close
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The Exchange believes that charging
$0.0005 per share for executions at the
open and close for all securities would
encourage order flow to maintain the
quality of the Exchange’s closing
auctions for the benefit of all market
participants. The Exchange’s closing
auction is a recognized industry
benchmark,20 and member
organizations receive a substantial
benefit from the Exchange in obtaining
high levels of executions at the
Exchange’s closing price on a daily
basis.
18 IEX, for instance, charges a fee of $0.0009 per
share for providing non-displayed liquidity for
securities priced at or above $1.00 and 0.30% of
TDVT (i.e., the total dollar value of the transaction
calculated as the execution price) for securities
below $1.00. See Investors Exchange Fee Schedule
2017, available at https://www.iextrading.com/
trading/fees/.
19 For example, IEX charges a fee of $0.0009 per
share for taking non-displayed liquidity for
securities priced at or above $1.00 and 0.30% of
TDVT (for securities below $1.00. See Investors
Exchange Fee Schedule 2017, available at https://
www.iextrading.com/trading/fees/.
20 For example, the pricing and valuation of
certain indices, funds, and derivative products
require primary market prints.
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Transaction Fees and Credits
The Exchange believes that the
proposed rebate of $0.0045 per share for
eDMM displayed transactions that add
liquidity to the Exchange in securities
with a price at or above $1.00 and the
proposed rebate of .25% of total dollar
value for eDMM displayed transactions
that add liquidity to the in securities
with a price below $1.00 are reasonable
and not unfairly discriminatory. To
qualify for the proposed adding
liquidity, monthly and market data
credits, each eDMM must satisfy the
heightened quoting obligation in for
eDMMs in Rule 7.24E(c), which requires
the eDMM to maintain a bid or an offer
at the NBBO at least 25% of the day as
measured across all Exchange-listed
securities that have been assigned to the
eDMM. The Exchange believes that the
proposed rebates based on the
heightened quoting obligations in Rule
7.24E(c) would encourage additional
displayed liquidity on the Exchange in
Exchange-listed securities. Further, the
Exchange believes that the proposed
rebates are equitably allocated and not
unfairly discriminatory because they
would apply equally to all eDMMs.
Further, the Exchange believes that
not charging eDMMs for non-displayed
transactions that add liquidity to the
Exchange in all securities is reasonable
and not unfairly discriminatory because
it would encourage additional nondisplayed liquidity on the Exchange in
Exchange-listed securities. The
Exchange believes that not charging
eDMMs for adding non-displayed
liquidity is not unfairly discriminatory
because it would apply equally to all
eDMMs. In addition, eDMMs have
higher quoting obligations than other
market participant, which contributes to
price discovery and benefits all market
participants. As such, it is equitable and
not unfairly discriminatory to offer
eDMMs fees that are relatively lower
than other market participants that do
not have such obligations.
The Exchange believes that not
charging eDMMs for executions at the
open or close in all securities does not
constitute an inequitable allocation of
dues, fees and other charges as it
provides the eDMMs appropriate
incentives to act as liquidity providers
and would support them in performing
their market making function in the
Exchange’s new automated price-time
priority allocation market model on
Pillar.
Monthly Credits
The Exchange believes that the
proposed $100 per security credit and
PO 00000
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Sfmt 4703
36015
the proposed prorating is reasonable in
light of lower trading volumes in the
applicable securities relatively [sic] to
those securities that have a consolidated
ADV of less than 50,000 shares. The
Exchange believes it is appropriate to
prorate the rebate to the number of
trading days because it would provide a
nexus between, and directly tie, the
rebate paid to a eDMM and the number
of trading days for which an eDMM has
regulatory responsibility for a stock
pursuant to Rule 7.24E(c). The Exchange
also believes that the proposal is
equitable and not unfairly
discriminatory because all eDMMs
would be treated the same. The
Exchange believes that the proposed
additional $500 per security credit is
reasonable and not unfairly
discriminatory for the same reasons.
Market Data Revenue
The Exchange believes that the
proposed DMM quoting requirement at
the NBBO at least 25% of the time
during Core Trading Hours in order to
receive in each applicable security
100% of the Quoting Share is reasonable
because the proposed requirement
would improve quoting and increase
adding liquidity across thinly traded
securities where there may be fewer
liquidity providers. Moreover, the
requirement is equitable and not
unfairly discriminatory because it
would apply equally to all eDMMs. The
Exchange notes that the Quoting Share
is in addition to the eDMM rebate for
providing liquidity and the monthly
credit payable to eDMMs for securities
with an ADV of less than 50,000 shares
during the billing month.
Routing Fees
The Exchange believes that its
proposed routing fees are a reasonable
and not an unfairly discriminatory
allocation of fees because the fee would
be applicable to all ETP Holders in an
equivalent manner. Moreover, the
proposed fees for routing shares are also
reasonable and not unfairly
discriminatory because they are
consistent with fees charged on other
exchanges. In particular, the Exchange’s
proposal to charge a fee of $0.0016 per
share for executions that route to and
execute on Away Market auctions in
securities priced at or above $1.00 is
reasonable and not unfairly
discriminatory because it is consistent
with fees charged on other exchanges.21
21 For example, the NASDAQ Stock Market
(‘‘NASDAQ’’) charges a rate of $0.0016 per executed
share for Tier F. See NASDAQ Fee Schedule at
https://www.nasdaqtrader.com/Trader.aspx?id=
PriceListTrading2.
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Federal Register / Vol. 82, No. 147 / Wednesday, August 2, 2017 / Notices
The proposal to charge $0.0030 for all
other executions in securities priced at
or above $1.00 that route to and execute
on Away Market auctions is reasonable
and not unfairly discriminatory because
it is consistent with fees charged on
other exchanges.22
Finally, the proposal to charge a fee
of 0.30% of total dollar value for
transactions in securities with a price
under $1.00 are reasonable and not
unfairly discriminatory because it is
consistent with fees charged on other
exchanges.23
Off-Hours Trading Facility
The Exchange believes that retaining
the current fee structure for off-hours
aggregate-price coupled orders in Pillar
without substantive change and moving
the fee to the new Pillar section of the
Price List utilizing updated references is
reasonable because the proposed
changes are designed to provide greater
specificity and clarity to the Price List,
reduce potential confusion, and make
the Exchange’s rules easier to navigate,
thereby removing impediments to and
perfecting the mechanism of a free and
open market and a national market
system, and, in general, protecting
investors and the public interest.
sradovich on DSKBCFCHB2PROD with NOTICES
Port Fees
The Exchange believes that the
proposed rates for order/quote entry
ports and drop copy ports are
reasonable because the fees charged for
both types of ports are expected to
permit the Exchange to offset, in part, its
connectivity costs associated with
making such ports available, including
costs based on software and hardware
enhancements and resources dedicated
to gateway development, quality
assurance, and support. The proposed
port fees are also reasonable because the
proposed fees are comparable to the
rates charged by other venues, and in
some cases are less expensive than
many of the Exchange’s competitors.24
The Exchange believes that the
proposed fee for order/quote entry ports
22 For example, NASDAQ charges a rate of
$0.0030 to remove liquidity for shares executed at
or above $1.00. See NASDAQ Fee Schedule at
https://www.nasdaqtrader.com/Trader.aspx?id=
PriceListTrading2.
23 NASDAQ, for example, charges a fee of 0.30%
(i.e. 30 basis points) of total dollar volume to
remove liquidity for shares executed below $1.00.
See NASDAQ Fee Schedule at https://
www.nasdaqtrader.com/Trader.aspx?id=
PriceListTrading2.
24 For example, NASDAQ charges $575 for order
entry ports and $550 for DROP ports. See NASDAQ
Fee Schedule at https://www.nasdaqtrader.com/
Trader.aspx?id=PriceListTrading2#connectivity.
Also, BZX charges $550 per month per pair for
logical ports. Additionally, EDGA and EDGX each
charge $550 per port per month.
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19:43 Aug 01, 2017
Jkt 241001
is equitable and not unfairly
discriminatory because charges for
order/entry ports being [sic] will be
based on the number of ports utilized.
This aspect of the proposed rule change
is also equitable and not unfairly
discriminatory because it will apply on
an equal basis for all ports on the
Exchange. The Exchange also believes
that these changes to the fees are
equitable and not unfairly
discriminatory because they would
apply to all users of order/quote entry
ports on the Exchange.
The Exchange believes that the
proposed fee for drop copy ports is
reasonable because it will result in a fee
being charged for the use of technology
and infrastructure provided by the
Exchange. In this regard, the Exchange
believes that the rate is reasonable
because it is comparable to the rate
charged by other exchanges for drop
copy ports.25
The Exchange also believes that it is
reasonable that only one fee per drop
copy port would apply, even if the port
receives drop copies from multiple
order/quote entry ports, because the
purpose of drop copies is such that a
trading unit’s or a firm’s entire order
and execution activity is captured. The
Exchange believes that the proposed
new fee for drop copy ports is equitable
and not unfairly discriminatory because
it will apply on an equal basis to all
users of drop copy ports and to all drop
copy ports on the Exchange. In this
regard, all firms will be able to request
drop copy ports, as would be the case
with order/quote entry ports.
ETP Fee
The Exchange believes that not
charging member organization [sic] a fee
to obtain an ETP on the Exchange is
reasonable because it may incentivize
broker-dealers to become Exchange
member organizations and to direct
order flow to the Exchange, which
benefits all market participants through
increased liquidity and enhanced price
discovery.
Finally, the Exchange believes that it
is subject to significant competitive
forces, as described below in the
Exchange’s statement regarding the
burden on competition.
For the foregoing reasons, the
Exchange believes that the proposal is
consistent [sic]
B. Self-Regulatory Organization’s
Statement on Burden on Competition
In accordance with Section 6(b)(8) of
the Act,26 the Exchange believes that the
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) 27 of the Act and
subparagraph (f)(2) of Rule 19b–4 28
thereunder, because it establishes a due,
25 See
27 15
26 15
28 17
PO 00000
note 24, supra.
U.S.C. 78f(b)(8).
proposed rule change would not 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 encourage the
submission of additional liquidity to a
public exchange, thereby promoting
price discovery and transparency and
enhancing order execution
opportunities for member organizations.
The Exchange believes that this could
promote competition between the
Exchange and other execution venues,
including those that currently offer
similar order types and comparable
transaction pricing, by encouraging
additional orders to be sent to the
Exchange for execution.
Finally, the Exchange notes that it
operates in a highly competitive market
in which market participants can
readily favor competing venues if they
deem fee levels at a particular venue to
be excessive or rebate opportunities
available at other venues to be more
favorable. In such an environment, the
Exchange must continually adjust its
fees and rebates to remain competitive
with other exchanges and with
alternative trading systems that have
been exempted from compliance with
the statutory standards applicable to
exchanges. Because competitors are free
to modify their own fees and credits in
response, and because market
participants may readily adjust their
order routing practices, the Exchange
believes that the degree to which fee
changes in this market may impose any
burden on competition is extremely
limited. As a result of all of these
considerations, the Exchange does not
believe that the proposed changes will
impair the ability of member
organizations or competing order
execution venues to maintain their
competitive standing in the financial
markets.
Frm 00091
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E:\FR\FM\02AUN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
02AUN1
36017
Federal Register / Vol. 82, No. 147 / Wednesday, August 2, 2017 / Notices
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) 29 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
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–2017–43 and should be
submitted on or before August 23, 2017.
Options Rules
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.30
Eduardo A. Aleman,
Assistant Secretary.
(a) and (b) No change.
(c) Notwithstanding any other
provision regarding the interval of strike
prices of series of options on ExchangeTraded Fund Shares in this rule, the
interval of strike prices on SPDR® S&P
500® ETF (‘‘SPY’’), iShares Core S&P
500 ETF (‘‘IVV’’), and the SPDR® Dow
Jones® Industrial Average ETF (‘‘DIA’’)
options will be $1 or greater.
(d)–(f) No change.
.02–.09 No change.
*
*
*
*
*
[FR Doc. 2017–16208 Filed 8–1–17; 8:45 am]
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–2017–43 on the subject line.
sradovich on DSKBCFCHB2PROD with NOTICES
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:
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend
Options Market Rules at Chapter IV,
Section 6
Paper Comments
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSEMKT–2017–43. 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
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 July 27,
2017, The NASDAQ Stock Market LLC
(‘‘Nasdaq’’ or ‘‘Exchange’’) 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 Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–81245; File No. SR–
NASDAQ–2017–073]
July 28, 2017.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
The Exchange proposes to amend The
NASDAQ Options Market LLC (‘‘NOM’’)
Rules at Chapter IV, Section 6, entitled
‘‘Series of Options Contracts Open for
Trading.’’
The text of the proposed rule change
is set forth below. Proposed new
language is italicized; deleted text is in
brackets.
*
*
*
*
*
NASDAQ Stock Market Rules
*
*
*
*
*
30 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
29 15
U.S.C. 78s(b)(2)(B).
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*
*
*
*
*
Chapter IV Securities Traded on NOM
*
*
*
*
*
Sec. 6 Series of Options Contracts Open
for Trading
(a)–(g) No change.
Supplementary Material to Section 6
.01
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
NOM Rules at Chapter IV, Section 6,
entitled ‘‘Series of Options Contracts
Open for Trading’’ by modifying the
strike setting regime for the iShares Core
S&P 500 ETF (‘‘IVV’’) options.
Specifically, the Exchange proposes to
modify the interval setting regime for
IVV options to allow $1 strike price
intervals above $200.
The Exchange believes that the
proposed rule change would make IVV
options easier for investors and traders
to use and more tailored to their
investment needs. Additionally, the
interval setting regime the Exchange
proposes to apply to IVV options is
currently applied to options on units of
the Standard & Poor’s Depository
E:\FR\FM\02AUN1.SGM
02AUN1
]]>Agencies
[Federal Register Volume 82, Number 147 (Wednesday, August 2, 2017)]
[Notices]
[Pages 36012-36017]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-16208]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-81228; File No. SR-NYSEMKT-2017-43]
Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed Change To Adopt Transaction Fees in
Connection With the Exchange's Transition to a Fully-Automated Cash
Equities Market
July 27, 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 July 19, 2017, NYSE MKT LLC (the ``Exchange'' or ``NYSE
MKT'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to adopt transaction fees in connection with
the Exchange's transition to a fully-automated cash equities market.
The Exchange proposes to implement the rule change on July 24, 2017.
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
On January 29, 2015, the Exchange announced the implementation of
Pillar, which is an integrated trading technology platform designed to
use a single specification for connecting to the equities and options
markets operated by the Exchange and its affiliates, NYSE Arca, Inc.
(``NYSE Arca'') and New York Stock Exchange LLC (``NYSE'').\4\ NYSE
Arca Equities, Inc. (``NYSE Arca Equities),\5\ which operates the cash
equities trading platform for NYSE Arca, was the first trading system
to migrate to Pillar.\6\
---------------------------------------------------------------------------
\4\ See Trader Update dated January 29, 2015, available here:
https://www.nyse.com/trader-update/history#13517.
\5\ NYSE Arca Equities is a wholly-owned corporation of NYSE
Arca and operates as a facility of NYSE Arca.
\6\ NYSE Arca filed four rule proposals in connection with the
NYSE Arca implementation of Pillar. See Securities Exchange Act
Release Nos. 74951 (May 13, 2015), 80 FR 28721 (May 19, 2015)
(Notice) and 75494 (July 20, 2015), 80 FR 44170 (July 24, 2015) (SR-
NYSEArca-2015-38) (Approval Order of NYSE Arca Pillar I Filing,
adopting rules for Trading Sessions, Order Ranking and Display, and
Order Execution); Securities Exchange Act Release Nos. 75497 (July
21, 2015), 80 FR 45022 (July 28, 2015) (Notice) and 76267 (October
26, 2015), 80 FR 66951 (October 30, 2015) (SR-NYSEArca-2015-56)
(Approval Order of NYSE Arca Pillar II Filing, adopting rules for
Orders and Modifiers and the Retail Liquidity Program); Securities
Exchange Act Release Nos. 75467 (July 16, 2015), 80 FR 43515 (July
22, 2015) (Notice) and 76198 (October 20, 2015), 80 FR 65274
(October 26, 2015) (SR-NYSEArca-2015-58) (Approval Order of NYSE
Arca Pillar III Filing, adopting rules for Trading Halts, Short
Sales, Limit Up-Limit Down, and Odd Lots and Mixed Lots); and
Securities Exchange Act Release Nos. 76085 (October 6, 2015), 80 FR
61513 (October 13, 2015) (Notice) and 76869 (January 11, 2016), 81
FR 2276 (January 15, 2016) (SR-NYSEArca-2015-86) (Approval Order of
NYSE Arca Pillar IV Filing, adopting rules for Auctions).
---------------------------------------------------------------------------
To effect its transition to Pillar, the Exchange adopted the rule
numbering framework of the NYSE Arca Equities, Inc. (``NYSE Arca
Equities'') rules for Exchange cash equities trading on the Pillar
trading platform.\7\ The Exchange's trading rules for cash equity
trading on Pillar are based on the trading rules of NYSE Arca
Equities.\8\ As described in the Trading Rules Filing, with Pillar, the
Exchange will transition its cash equities trading platform from a
Floor-based market with a parity allocation model to a fully automated
price-time priority allocation model that trades all NMS Stocks.
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 79242 (November 4,
2016), 81 FR 79081 (November 10, 2016) (SR-NYSEMKT-2016-97) (Notice
and Filing of Immediate Effectiveness of Proposed Rule Change) (the
``Framework Filing''). The rules applicable to cash equities trading
on Pillar are denoted with the letter ``E''. Additionally, the
Exchange filed a proposed rule change to support Exchange trading of
securities listed on other national securities exchanges on an
unlisted trading privileges basis, including Exchange Traded
Products (``ETP'') listed on other exchanges. See Securities
Exchange Act Release No. 79400 (November 25, 2016), 81 FR 86750
(December 1, 2016) (SR-NYSEMKT-2016-103) (Notice) (the ``ETP Listing
Rules Filing'').
\8\ See Securities Exchange Act Release Nos. 80590 (May 4,
2017), 82 FR 21843 (May 10, 2017) (Approval Order) and 79993
(February 9, 2017), 82 FR 10814 (February 15, 2017) (SR-NYSEMKT-
2017-01) (Notice) (``Trading Rules Filing''). The Exchange also has
established market maker obligations when trading on the Pillar
trading platform. See Securities Exchange Act Release No. 80577 (May
2, 2017), 82 FR 21446 (May 8, 2017) (SR-NYSEMKT-2017-04) (Approval
Order) (``DMM Obligations Filing''). In addition, the Exchange will
introduce a delay mechanism on Pillar that will add the equivalent
of 350 microseconds of latency to inbound and outbound order
messages. See Securities Exchange Act Release Nos. 80700 (May 16,
2017), 82 FR 23381 (May 22, 2017) (SR-NYSEMKT-2017-05) (Approval
Order) and 79998 (February 9, 2017), 82 FR 10828 (February 15, 2017)
(SR-NYSEMKT-2017-05) (Notice).
---------------------------------------------------------------------------
In connection with this transition, the Exchange proposes to amend
its Price List to adopt a new pricing model for trading on the Pillar
platform.
The proposed changes would apply to transactions executed in all
trading sessions in securities priced at or above and below $1.00.
The Exchange proposes to implement these changes effective July 24,
2017.
Proposed Rule Change
The Exchange proposes the following transaction fees for trading on
its Pillar trading platform.
The Exchange also proposes to add the following legend immediately
before those current fees and credits in the
[[Page 36013]]
current fee schedule that would no longer be applicable when trading on
the Pillar platform begins: ``The following Fees and Credits are not
Applicable to Trading on the Pillar Trading Platform.'' The Exchange
believes that the proposed legend would clarify which fees and credits
in the current fee schedule would not be applicable to trading on the
Pillar platform, and thus promote transparency regarding which rules
would govern trading on the Exchange once it transitions to Pillar.
General Information Applicable to the Price List
The Exchange proposes to summarize general information applicable
to fees for the Pillar trading platform in three bullets under the
first heading in the Price List titled ``Pillar Trading Platform.''
The first bullet would provide that rebates are indicated by
parentheses.
The second bullet would provide that, for purposes of determining
transaction fees and credits based on requirements based on quoting
levels, average daily volume (``ADV''), and consolidated ADV
(``CADV''), the Exchange may exclude shares traded any day that (1) the
Exchange is not open for the entire trading day and/or (2) a disruption
affects an Exchange system that lasts for more than 60 minutes during
regular trading hours. The second proposed bullet would reproduce the
language in footnote 6 of the current Price List.
Finally, the Exchange would state that Electronic Designated Market
Maker (``eDMM'') \9\ liquidity credits based on quoting in Exchange-
listed securities in the current month will include scheduled early
closing days but will not include days involving one or both of the
events described in proposed bullet two described above. Once again,
the language on the third proposed bullet would reproduce language in
footnote 7 of the current Price List.
---------------------------------------------------------------------------
\9\ See note 10, infra.
---------------------------------------------------------------------------
Transaction Fees
The Exchange proposes the following transactions fees for all
transactions other than transactions by an eDMM in securities assigned
to an eDMM under heading I titled ``Transaction Fees (other than for
Transactions by an eDMM in Securities Assigned to an eDMM)'':
Liquidity Adding Displayed Order Fees
The Exchange does not propose to charge a fee for executions on the
Exchange of displayed orders that add liquidity to the Exchange. The
proposal would apply to securities priced at or above $1.00 as well as
below $1.00.
Liquidity Adding Non-Displayed Order Fees
For securities priced at or above $1.00, the Exchange proposes to
charge $0.0002 per share for executions on the Exchange of non-
displayed orders that add liquidity to the Exchange.
For securities priced below $1.00, the Exchange proposes to charge
0.25% of the total dollar value of the transaction for executions on
the Exchange of non-displayed orders that add liquidity to the
Exchange.
Liquidity Removing Order Fees
The Exchange proposes to charge $0.0002 per share for securities
priced at or above $1.00 and 0.25% of the total dollar value of the
transaction for securities priced below $1.00 for all executions on the
Exchange that remove liquidity from the Exchange. As noted below, the
same fees would apply to eDMM transactions that remove liquidity from
the Exchange.
Executions at the Open and Close
For securities priced at or above $1.00 as well as below $1.00, the
Exchange proposes to charge a fee of $0.0005 per share for executions
at the open and close.
eDMM Fees and Credits
Following the transition to Pillar, Exchange DMMs will be
electronic access only,\10\ and the Exchange proposes to refer to them
as ``eDMMs'' in the Price List and in this Filing. The Exchange
proposes new fees and credits applicable to eDMM on transactions in
securities assigned to the eDMM under heading II in the Price List
titled ``Fees and Credits Applicable to eDMMs on Transactions in
Securities Assigned to an eDMM.''
---------------------------------------------------------------------------
\10\ See DMM Obligations Filing, 82 FR at 21446. In addition,
because DMMs in Pillar will not be Floor-based individuals who
operate within a DMM unit of a member organization, the Exchange
will not assign securities at the natural person level and will not
require DMMs to facilitate the opening, reopening, or closing of
assigned Exchange-listed securities. Further, the DMM rules do not
entitle e-DMMs to a parity allocation of executions, and also would
not subject DMMs to heightened capital requirements. Finally, DMMs
would continue to be subject to rules governing allocation of
securities and combination of DMM units. See generally id. The
registration and obligations of DMMs are set forth in Rule 7.24E.
---------------------------------------------------------------------------
Immediately below the new proposed heading, the Exchange proposes
to summarize certain general information applicable to eDMM fees and
credits in three introductory bullets.
The first bullet would provide that, unless an eDMM qualifies for a
higher rebate, eDMMs in NYSE American \11\-listed securities will
receive the specified rebates based on the specified quoting
requirement for securities at or above $1.00.
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\11\ Effective on or before July 24, 2017, the Exchange's name
will change to NYSE American LLC. The Exchange has filed to amend,
among other documents, the Price List to reflect the name change.
See Securities Exchange Act Release No. 80283 (March 21, 2017), 82
FR 15244 (March 21, 2017). Because the proposed amendments to the
Price List described in this proposed rule change will be effective
after the Exchange changes its name, the Exchange proposes to
reflect the new name in the proposed Price List.
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The second bullet would define ``Core Trading Hours'' to mean the
hours of 9:30 a.m. Eastern Time through 4:00 p.m. Eastern Time or such
other hours as may be determined by the Exchange from time to time. The
proposed bullet is consistent with Rule 1.1E(j), which defines ``Core
Trading Hours.''
Finally, the third bullet would provide that, for each eDMM to
qualify for the specified credits, each eDMM must meet the heightened
quoting obligations set forth in Rule 7.24E(c).\12\
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\12\ Rule 7.24E(c) describes the obligations of DMMs on the
Pillar Trading Platform and provides that, in addition to meeting
the Market Maker obligations set forth in Rule 7.23E, DMMs are
required to maintain a bid or an offer at the National Best Bid and
National Best Offer (``NBBO'' or ``inside'') at least 25% of the day
as measured across all Exchange-listed securities that have been
assigned to the DMM. Rule 7.24E(c) further provides that time at the
inside is calculated as the average of the percentage of time the
DMM unit has a bid or offer at the inside and that orders entered by
the DMM that are not displayed would not be included in the inside
quote calculation.
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The Exchange proposes three new subheadings A through C setting
forth eDMM transaction fee and credits, eDMM monthly credits, and
market data revenue.
Transaction Fees and Credits
Beneath a new subheading A titled ``Transaction Fees and Credits,''
the Exchange would summarize eDMM fees and credits for transactions
that (1) add liquidity to the Exchange, (2) remove liquidity from the
Exchange, and (3) for executions at the open and close of trading, as
follows:
For transactions in securities with a price at or above $1.00, the
Exchange proposes a rebate to eDMMs of $0.0045 per share for displayed
transactions that add liquidity to the Exchange.
The Exchange does not propose to charge for non-displayed
transactions that add liquidity to the Exchange in securities with a
price at or above $1.00.
For transactions in securities with a price below $1.00, the
Exchange proposes a rebate of .25% of total dollar value for displayed
transactions that add liquidity to the Exchange.
[[Page 36014]]
The Exchange does not propose to charge for non-displayed
transactions that add liquidity to the Exchange in securities with a
price below $1.00.
The Exchange does not propose to charge for executions at the open
and close for securities priced at or above $1.00 as well as below
$1.00.
The Exchange proposes to charge $0.0002 per share for securities
priced at or above $1.00 and 0.25% of the total dollar value of the
transaction for securities priced below $1.00 for all eDMM executions
on the Exchange that remove liquidity from the Exchange.
Monthly Credits
Beneath a new subheading B titled ``Monthly Credits,'' the Exchange
proposes that, in addition to the current rate on transactions, the
Exchange would provide additional per security credits for eDMMs if
certain requirements are met.
First, the Exchange proposes a $100 per security credit in a month
that a security is assigned to the eDMM for securities whose CADV
during the previous month would be less than 50,000 shares per day and
for which the eDMM quotes at the NBBO at least 25% of the time during
Core Trading Hours for that symbol in that month. The credit would be
prorated to the number of trading days in a month that a security is
assigned to the eDMM.
Second, in addition to the current rate on transactions and the
$100 monthly credit, the Exchange proposes to provide a $500 per
security credit in a month that a security is assigned to an eDMM, for
each security for which the eDMM quotes at the NBBO at least 25% of the
time during Core Trading Hours for that symbol in that month up to a
maximum of 20 symbols per month per eDMM.
Market Data Revenue
Under new heading C titled ``Market Data Revenue,'' the Exchange
proposes that, for securities with a trading price either at, above or
below $1.00, each eDMM would receive all of the market data quote
revenue (the ``Quoting Share'') in their assigned securities received
by the Exchange from the Consolidated Tape Association under the
Revenue Allocation Formula of Regulation NMS in any month in which the
eDMM quotes at the NBBO at least 25% of time during Core Trading Hours.
Routing Fees for All ETP Holders
Under new heading III titled ``Fees for Routing for all ETP
Holders,'' the Exchange proposes the following fees for routing, which
would be applicable to all orders that are routed, including orders
from eDMMs in their assigned NYSE American-listed securities.
For executions in securities with a price at or above $1.00 that
route to and execute on Away Markets,\13\ the Exchange proposes to
charge a fee of $0.0016 per share for executions in an Away Market
auction, and a fee of $0.0030 for all other executions.
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\13\ The term ``Away Market'' is defined in Rule 1.1E(ff) to
mean any exchange, alternative trading system (``ATS'') or other
broker-dealer (1) with which the Exchange maintains an electronic
linkage, and (2) that provides instantaneous responses to orders
routed from the Exchange.
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For securities priced below $1.00 that route to and execute on Away
Markets, the Exchange proposes to charge a fee of 0.30% of the total
dollar value of the transaction for executions in an Away Market
auction as well as all other executions.
Off-Hours Trading Facility
Following the transition to Pillar, trading on the Exchange's Off-
Hours Trading Facility will be governed by Rule 7.39E for trading in
aggregate-price coupled orders, which is also known as ``Crossing
Session II.'' The Exchange currently charges a fee of $0.0004 per share
for multiple stock aggregate priced buy and sell orders in Crossing
Session II. Fees for such executions are currently capped at $100,000
per month per member organization.
The Exchange proposes to retain this fee structure without any
substantive differences for aggregate-price coupled orders executed in
the Off-Hours Trading Facility described in Rule 7.39E. Because such
trading would be pursuant to a Pillar rule, the Exchange proposes to
set forth the fee under a new heading IV titled ``Fees for Off-Hours
Trading Facility'' in the proposed Price List and omit any reference to
Crossing Session II.
Port Fees
Under proposed new heading V titled ``Port Fees,'' the Exchange
proposes fees for the use of ports that (1) that provide connectivity
to the Exchange's trading systems (i.e., ports for entry of orders and/
or quotes (``order/quote entry ports'')), and (2) allow for the receipt
of ``drop copies'' of order or transaction information (``drop copy
ports'' and, together with order/quote entry ports, ``ports'').\14\
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\14\ Firms receive confirmations of their orders and receive
execution reports via the order/quote entry port that is used to
enter the order or quote. A ``drop copy'' contains redundant
information that a firm chooses to have ``dropped'' to another
destination (e.g., to allow the firm's back office and/or compliance
department, or another firm--typically the firm's clearing broker--
to have immediate access to the information). Drop copies can only
be sent via a drop copy port. Drop copy ports cannot be used to
enter orders and/or quotes.
---------------------------------------------------------------------------
For order/quote entry ports, the Exchange proposes to charge $250
per port per month. The fee would apply to all market participants. The
Exchange proposes not to charge for order/quote entry ports until
October 1, 2017. Thereafter, the Exchange proposes to implement the
$250 per port per month fee.
Similarly, the Exchange proposes to charge $250 per drop copy port
per month. The fee would apply to all market participants.
Additionally, the Exchange proposes to specify that only one fee per
drop copy port would apply, even if the port receives drop copies from
multiple order/quote entry ports.
The Exchange proposes not to charge for drop copy ports until
October 1, 2017. Thereafter, the Exchange proposes to implement the
$250 per port per month fee.
Equity Trading Permit (``ETP'') Fee
The Exchange proposes a new heading VI titled ``ETP Fee.'' The
Exchange does not propose to charge a fee to obtain an ETP.\15\
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\15\ See Rule 1.1E(m) (definition of ETP).
---------------------------------------------------------------------------
* * * * *
The proposed changes are not otherwise intended to address any
other issues, and the Exchange is not aware of any problems that member
organizations would have in complying with the proposed change.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\16\ in general, and furthers the
objectives of Sections 6(b)(4) and 6(b)(5) of the Act,\17\ 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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\16\ 15 U.S.C. 78f(b).
\17\ 15 U.S.C. 78f(b)(4) & (5).
---------------------------------------------------------------------------
Transaction Fees
Liquidity Adding Displayed Order Fees
The Exchange believes that not charging a fee for liquidity adding
displayed orders would encourage price discovery and enhance market
quality by encouraging more competitive pricing of displayed orders.
The Exchange believes that not charging a fee for liquidity adding
displayed orders is equitable and not unfairly discriminatory because
it is designed to facilitate execution of, and enhance
[[Page 36015]]
trading opportunities for, displayable orders, thereby further
incentivizing entry of displayed orders on the Exchange.
Liquidity Adding Non-Displayed Order Fees
The Exchange believes that charging $0.0002 per share for
securities priced at or above $1.00 and 0.25% of the total dollar value
of the transaction for securities priced below $1.00 for executions on
the Exchange of non-displayed orders that add liquidity to the Exchange
is reasonable and not unfairly discriminatory because the proposed rate
would be lower than the fee charged by other exchanges.\18\ The
Exchange further believes that the proposed fee increase is equitable
and not unfairly discriminatory because it would apply to all non-
displayed orders that add liquidity to the Exchange.
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\18\ IEX, for instance, charges a fee of $0.0009 per share for
providing non-displayed liquidity for securities priced at or above
$1.00 and 0.30% of TDVT (i.e., the total dollar value of the
transaction calculated as the execution price) for securities below
$1.00. See Investors Exchange Fee Schedule 2017, available at
https://www.iextrading.com/trading/fees/.
---------------------------------------------------------------------------
Liquidity Removing Order Fees
The Exchange believes that charging $0.0002 per share for
securities priced at or above $1.00 and 0.25% of the total dollar value
of the transaction for securities priced below $1.00 for executions on
the Exchange that remove liquidity, including eDMM transactions, is
reasonable and consistent with the Act. The Exchange notes that the
proposed fees are less than the comparable fees on other exchanges.\19\
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\19\ For example, IEX charges a fee of $0.0009 per share for
taking non-displayed liquidity for securities priced at or above
$1.00 and 0.30% of TDVT (for securities below $1.00. See Investors
Exchange Fee Schedule 2017, available at https://www.iextrading.com/trading/fees/.
---------------------------------------------------------------------------
Executions at the Open and Close
The Exchange believes that charging $0.0005 per share for
executions at the open and close for all securities would encourage
order flow to maintain the quality of the Exchange's closing auctions
for the benefit of all market participants. The Exchange's closing
auction is a recognized industry benchmark,\20\ and member
organizations receive a substantial benefit from the Exchange in
obtaining high levels of executions at the Exchange's closing price on
a daily basis.
---------------------------------------------------------------------------
\20\ For example, the pricing and valuation of certain indices,
funds, and derivative products require primary market prints.
---------------------------------------------------------------------------
eDMM Fees and Credits
Transaction Fees and Credits
The Exchange believes that the proposed rebate of $0.0045 per share
for eDMM displayed transactions that add liquidity to the Exchange in
securities with a price at or above $1.00 and the proposed rebate of
.25% of total dollar value for eDMM displayed transactions that add
liquidity to the in securities with a price below $1.00 are reasonable
and not unfairly discriminatory. To qualify for the proposed adding
liquidity, monthly and market data credits, each eDMM must satisfy the
heightened quoting obligation in for eDMMs in Rule 7.24E(c), which
requires the eDMM to maintain a bid or an offer at the NBBO at least
25% of the day as measured across all Exchange-listed securities that
have been assigned to the eDMM. The Exchange believes that the proposed
rebates based on the heightened quoting obligations in Rule 7.24E(c)
would encourage additional displayed liquidity on the Exchange in
Exchange-listed securities. Further, the Exchange believes that the
proposed rebates are equitably allocated and not unfairly
discriminatory because they would apply equally to all eDMMs.
Further, the Exchange believes that not charging eDMMs for non-
displayed transactions that add liquidity to the Exchange in all
securities is reasonable and not unfairly discriminatory because it
would encourage additional non-displayed liquidity on the Exchange in
Exchange-listed securities. The Exchange believes that not charging
eDMMs for adding non-displayed liquidity is not unfairly discriminatory
because it would apply equally to all eDMMs. In addition, eDMMs have
higher quoting obligations than other market participant, which
contributes to price discovery and benefits all market participants. As
such, it is equitable and not unfairly discriminatory to offer eDMMs
fees that are relatively lower than other market participants that do
not have such obligations.
The Exchange believes that not charging eDMMs for executions at the
open or close in all securities does not constitute an inequitable
allocation of dues, fees and other charges as it provides the eDMMs
appropriate incentives to act as liquidity providers and would support
them in performing their market making function in the Exchange's new
automated price-time priority allocation market model on Pillar.
Monthly Credits
The Exchange believes that the proposed $100 per security credit
and the proposed prorating is reasonable in light of lower trading
volumes in the applicable securities relatively [sic] to those
securities that have a consolidated ADV of less than 50,000 shares. The
Exchange believes it is appropriate to prorate the rebate to the number
of trading days because it would provide a nexus between, and directly
tie, the rebate paid to a eDMM and the number of trading days for which
an eDMM has regulatory responsibility for a stock pursuant to Rule
7.24E(c). The Exchange also believes that the proposal is equitable and
not unfairly discriminatory because all eDMMs would be treated the
same. The Exchange believes that the proposed additional $500 per
security credit is reasonable and not unfairly discriminatory for the
same reasons.
Market Data Revenue
The Exchange believes that the proposed DMM quoting requirement at
the NBBO at least 25% of the time during Core Trading Hours in order to
receive in each applicable security 100% of the Quoting Share is
reasonable because the proposed requirement would improve quoting and
increase adding liquidity across thinly traded securities where there
may be fewer liquidity providers. Moreover, the requirement is
equitable and not unfairly discriminatory because it would apply
equally to all eDMMs. The Exchange notes that the Quoting Share is in
addition to the eDMM rebate for providing liquidity and the monthly
credit payable to eDMMs for securities with an ADV of less than 50,000
shares during the billing month.
Routing Fees
The Exchange believes that its proposed routing fees are a
reasonable and not an unfairly discriminatory allocation of fees
because the fee would be applicable to all ETP Holders in an equivalent
manner. Moreover, the proposed fees for routing shares are also
reasonable and not unfairly discriminatory because they are consistent
with fees charged on other exchanges. In particular, the Exchange's
proposal to charge a fee of $0.0016 per share for executions that route
to and execute on Away Market auctions in securities priced at or above
$1.00 is reasonable and not unfairly discriminatory because it is
consistent with fees charged on other exchanges.\21\
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\21\ For example, the NASDAQ Stock Market (``NASDAQ'') charges a
rate of $0.0016 per executed share for Tier F. See NASDAQ Fee
Schedule at https://www.nasdaqtrader.com/Trader.aspx?id=PriceListTrading2.
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[[Page 36016]]
The proposal to charge $0.0030 for all other executions in
securities priced at or above $1.00 that route to and execute on Away
Market auctions is reasonable and not unfairly discriminatory because
it is consistent with fees charged on other exchanges.\22\
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\22\ For example, NASDAQ charges a rate of $0.0030 to remove
liquidity for shares executed at or above $1.00. See NASDAQ Fee
Schedule at https://www.nasdaqtrader.com/Trader.aspx?id=PriceListTrading2.
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Finally, the proposal to charge a fee of 0.30% of total dollar
value for transactions in securities with a price under $1.00 are
reasonable and not unfairly discriminatory because it is consistent
with fees charged on other exchanges.\23\
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\23\ NASDAQ, for example, charges a fee of 0.30% (i.e. 30 basis
points) of total dollar volume to remove liquidity for shares
executed below $1.00. See NASDAQ Fee Schedule at https://www.nasdaqtrader.com/Trader.aspx?id=PriceListTrading2.
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Off-Hours Trading Facility
The Exchange believes that retaining the current fee structure for
off-hours aggregate-price coupled orders in Pillar without substantive
change and moving the fee to the new Pillar section of the Price List
utilizing updated references is reasonable because the proposed changes
are designed to provide greater specificity and clarity to the Price
List, reduce potential confusion, and make the Exchange's rules easier
to navigate, thereby removing impediments to and perfecting the
mechanism of a free and open market and a national market system, and,
in general, protecting investors and the public interest.
Port Fees
The Exchange believes that the proposed rates for order/quote entry
ports and drop copy ports are reasonable because the fees charged for
both types of ports are expected to permit the Exchange to offset, in
part, its connectivity costs associated with making such ports
available, including costs based on software and hardware enhancements
and resources dedicated to gateway development, quality assurance, and
support. The proposed port fees are also reasonable because the
proposed fees are comparable to the rates charged by other venues, and
in some cases are less expensive than many of the Exchange's
competitors.\24\
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\24\ For example, NASDAQ charges $575 for order entry ports and
$550 for DROP ports. See NASDAQ Fee Schedule at https://www.nasdaqtrader.com/Trader.aspx?id=PriceListTrading2#connectivity.
Also, BZX charges $550 per month per pair for logical ports.
Additionally, EDGA and EDGX each charge $550 per port per month.
---------------------------------------------------------------------------
The Exchange believes that the proposed fee for order/quote entry
ports is equitable and not unfairly discriminatory because charges for
order/entry ports being [sic] will be based on the number of ports
utilized. This aspect of the proposed rule change is also equitable and
not unfairly discriminatory because it will apply on an equal basis for
all ports on the Exchange. The Exchange also believes that these
changes to the fees are equitable and not unfairly discriminatory
because they would apply to all users of order/quote entry ports on the
Exchange.
The Exchange believes that the proposed fee for drop copy ports is
reasonable because it will result in a fee being charged for the use of
technology and infrastructure provided by the Exchange. In this regard,
the Exchange believes that the rate is reasonable because it is
comparable to the rate charged by other exchanges for drop copy
ports.\25\
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\25\ See note 24, supra.
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The Exchange also believes that it is reasonable that only one fee
per drop copy port would apply, even if the port receives drop copies
from multiple order/quote entry ports, because the purpose of drop
copies is such that a trading unit's or a firm's entire order and
execution activity is captured. The Exchange believes that the proposed
new fee for drop copy ports is equitable and not unfairly
discriminatory because it will apply on an equal basis to all users of
drop copy ports and to all drop copy ports on the Exchange. In this
regard, all firms will be able to request drop copy ports, as would be
the case with order/quote entry ports.
ETP Fee
The Exchange believes that not charging member organization [sic] a
fee to obtain an ETP on the Exchange is reasonable because it may
incentivize broker-dealers to become Exchange member organizations and
to direct order flow to the Exchange, which benefits all market
participants through increased liquidity and enhanced price discovery.
Finally, the Exchange believes that it is subject to significant
competitive forces, as described below in the Exchange's statement
regarding the burden on competition.
For the foregoing reasons, the Exchange believes that the proposal
is consistent [sic]
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\26\ 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. Instead, the Exchange believes that the proposed
changes would encourage the submission of additional liquidity to a
public exchange, thereby promoting price discovery and transparency and
enhancing order execution opportunities for member organizations. The
Exchange believes that this could promote competition between the
Exchange and other execution venues, including those that currently
offer similar order types and comparable transaction pricing, by
encouraging additional orders to be sent to the Exchange for execution.
---------------------------------------------------------------------------
\26\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------
Finally, the Exchange notes that it operates in a highly
competitive market in which market participants can readily favor
competing venues if they deem fee levels at a particular venue to be
excessive or rebate opportunities available at other venues to be more
favorable. In such an environment, the Exchange must continually adjust
its fees and rebates to remain competitive with other exchanges and
with alternative trading systems that have been exempted from
compliance with the statutory standards applicable to exchanges.
Because competitors are free to modify their own fees and credits in
response, and because market participants may readily adjust their
order routing practices, the Exchange believes that the degree to which
fee changes in this market may impose any burden on competition is
extremely limited. As a result of all of these considerations, the
Exchange does not believe that the proposed changes will impair the
ability of member organizations or competing order execution venues to
maintain their competitive standing in the financial markets.
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) \27\ of the Act and subparagraph (f)(2) of Rule
19b-4 \28\ thereunder, because it establishes a due,
[[Page 36017]]
fee, or other charge imposed by the Exchange.
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\27\ 15 U.S.C. 78s(b)(3)(A).
\28\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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) \29\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\29\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------
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-2017-43 on the subject line.
Paper Comments
Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSEMKT-2017-43. 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-NYSEMKT-2017-43 and should
be submitted on or before August 23, 2017.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\30\
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\30\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-16208 Filed 8-1-17; 8:45 am]
BILLING CODE 8011-01-P
