Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify the NYSE Arca Options Fee Schedule, 36516-36519 [2017-16403]

Download as PDF 36516 Federal Register / Vol. 82, No. 149 / Friday, August 4, 2017 / Notices appropriate at this time in view of the legal and policy issues raised by the proposed rule change. Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. Rather, as described below, the Commission seeks and encourages interested persons to provide comments on the proposed rule change. Pursuant to Section 19(b)(2)(B) of the Act,33 the Commission is providing notice of the grounds for disapproval under consideration. The Commission is instituting proceedings to allow for additional analysis of the proposed rule change’s consistency with Section 6(b)(5) of the Act, which requires, among other things, that the rules of a national securities exchange be ‘‘designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, . . . to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest.’’ 34 IV. Procedure: Request for Written Comments The Commission requests that interested persons provide written submissions of their views, data, and arguments with respect to the issues identified above, as well as any other concerns they may have with the proposal. In particular, the Commission invites the written views of interested persons concerning whether the proposal is consistent with Section 6(b)(5) or any other provision of the Act, or the rules and regulations thereunder. Although there do not appear to be any issues relevant to approval or disapproval that would be facilitated by an oral presentation of views, data, and arguments, the Commission will consider, pursuant to Rule 19b–4, any request for an opportunity to make an oral presentation.35 Interested persons are invited to submit written data, views, and arguments regarding whether the proposal should be approved or disapproved by August 25, 2017. Any 33 Id. 34 15 U.S.C. 78f(b)(5). 19(b)(2) of the Act, as amended by the Securities Act Amendments of 1975, Public Law 94–29 (June 4, 1975), grants the Commission flexibility to determine what type of proceeding— either oral or notice and opportunity for written comments—is appropriate for consideration of a particular proposal by a self-regulatory organization. See Securities Act Amendments of 1975, Senate Comm. on Banking, Housing & Urban Affairs, S. Rep. No. 75, 94th Cong., 1st Sess. 30 (1975). 35 Section VerDate Sep<11>2014 15:13 Aug 03, 2017 Jkt 241001 person who wishes to file a rebuttal to any other person’s submission must file that rebuttal by September 8, 2017. The Commission asks that commenters address the sufficiency of the Exchange’s statements in support of the proposal, which are set forth in the Notice,36 in addition to any other comments they may wish to submit about the proposed rule change. Specifically, the Commission seeks comment on the statements of the Exchange contained in the Notice, the issues raised by the commenters, and any other issues raised by the proposed rule change. In addition, the Commission seeks comment on whether the trading of the Shares would be consistent with the maintenance of fair and orderly markets. In this regard, the Commission specifically seeks comment regarding market makers’ ability to make markets in the Shares and the sufficiency of the proposed VIIV as pricing information to market participants. Further, the Commission solicits comments on whether the selective disclosure of portfolio holdings to a Trusted Agent, as well as the non-transparent structure of the Funds, could result in any information asymmetry that would be inconsistent with the Act or other Federal securities laws or rules and regulations thereunder. 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–2017–36 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 Numbers SR–NYSEArca–2017–36. 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 36 See PO 00000 supra note 3. Frm 00161 Fmt 4703 Sfmt 4703 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 these filings 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–2017–36 and should be submitted on or before August 25, 2017. Rebuttal comments should be submitted by September 8, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.37 Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017–16402 Filed 8–3–17; 8:45 am] BILLING CODE P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–81268; File No. SR– NYSEARCA–2017–79] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify the NYSE Arca Options Fee Schedule July 31, 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 20, 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, 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. 37 17 CFR 200.30–3(a)(57). U.S.C.78s(b)(1). 2 15 U.S.C. 78a. 3 17 CFR 240.19b–4. 1 15 E:\FR\FM\04AUN1.SGM 04AUN1 Federal Register / Vol. 82, No. 149 / Friday, August 4, 2017 / Notices I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to modify the NYSE Arca Options Fee Schedule (‘‘Fee Schedule’’) to add clarification and consistency, but the Exchange is not proposing any changes to its fees. The Exchange proposes to implement the fee change effective July 20, 2017. The proposed rule change is available on the Exchange’s Web site at www.nyse.com, at the principal office of the Exchange, and at the Commission’s Public Reference Room. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of those statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of this filing is to make a number of textual changes designed to clarify and add consistency to the Fee Schedule. The Exchange is not proposing to make any substantive changes to its current fees. Earlier this month, July 2017, the Exchange submitted a filing that included clarifying changes to certain tables regarding Market Maker incentives (the ‘‘MM Cleanup Filing’’).4 The first sets of proposed changes are conforming changes, which are designed to align the text used in other incentive programs described in the Fee Schedule with those modified in the MM Cleanup Filing. Specifically, these conforming changes include: • The Exchange proposes to re-locate the reference to Endnote 15 from the beginning [sic] to the end [sic] of each of the following tables: ‘‘Customer and Professional Customer Monthly Posting Credit Tiers and Qualifications for Executions in Penny Pilot Issues’’; ‘‘Customer and Professional Customer 4 See Securities Exchange Act Release No. 81140 (July 13, 2017), 82 FR 33194 (July 19, 2017) (SR– NYSEArca–2017–77). VerDate Sep<11>2014 15:13 Aug 03, 2017 Jkt 241001 Incentive Program’’; and [sic] ‘‘NonCustomer Monthly Posting Credit Tiers and Qualifications for Executions in Non-Penny Pilot Issues’’; ‘‘Take Fee Discount Qualification for Penny Pilot Issues’’; and ‘‘Take Fee Discount Qualification for Non-Penny Pilot Issues’’ (the ‘‘Modified Tables’’). Endnote 15 provides that the qualification thresholds set forth in the applicable tables ‘‘[i]ncludes transaction volume from the OTP Holder’s or OTP Firm’s affiliates or its Appointed OFP or Appointed MM.’’ 5 Consistent with this proposed change, the Exchange proposes to remove the language that appears at the end of each of the Modified Tables providing that volume of an Appointed MM or Appointed OFP may be included because it would be duplicative of text contained in Endnote 15. • The Exchange proposes to replace reference to ‘‘Total Industry Customer equity and ETF option average daily volume’’ with ‘‘TCADV’’ (as defined in Endnote 8) 6 and to use this shorthand reference in the Modified Tables. Given that TCADV is defined in Endnote 8 and given that the ‘‘Customer and Professional Customer Monthly Posting Credit Tiers and Qualifications for Executions in Penny Pilot Issues’’ includes reference to Endnote 8, the Exchange proposes to remove the following language from this table because it is duplicative: ‘‘Qualifications based in part on Total Industry Customer equity and ETF option average daily volume (‘‘TCADV’’).’’ • In each of the Modified Tables, the Exchange proposes to replace reference to ‘‘Posted Orders’’ with ‘‘posted interest’’ and any reference to ‘‘orders’’ with ‘‘interest’’ to make clear that, where applicable, liquidity may include orders or quotes. • For consistency, the Exchange proposes to remove any capitalization from ‘‘issues’’ in reference to ‘‘all issues’’ in the Modified Tables. The Exchange also proposes to capitalize ‘‘Issues’’ as relates to ‘‘Penny Pilot Issues,’’ in the preamble to the ‘‘Customer and Professional Customer Monthly Posting Credit Tiers and Qualifications for Executions in Penny Pilot Issues,’’ and as relates to ‘‘nonPenny Pilot Issues,’’ in the preamble to the ‘‘Non-Customer Monthly Posting Credit Tiers and Qualifications for Executions in Non-Penny Pilot Issues.’’ • The Exchange also proposes to add a comma and, where applicable, the 5 See Fee Schedule, Endnote 15. supra note 4, the MM Cleanup Filing (adding definition of TCADV). 6 See PO 00000 Frm 00162 Fmt 4703 Sfmt 4703 36517 word ‘‘or’’, to signify an alternative qualification basis in certain of the Modified Tables as well as to remove any capitalization of the word ‘‘Plus’’ as relates to any alterative qualification bases in the Modified Tables. • The Exchange also proposes to alter the language in the Modified Tables to clarify how the credits are applied, i.e., that credit is applied to ‘‘electronic executions of [the applicable] posted interest’’ in the applicable securities. For consistency and clarity, the Exchange proposes to add ‘‘Electronic’’ to, as well as to capitalize ‘‘Non-Penny,’’ in the table heading for the ‘‘NonCustomer Monthly Posting Credit Tiers and Qualifications for Executions in Non-Penny Pilot Issues.’’ • For ease of reference, the Exchange proposes to rename the ‘‘Non-Customer Monthly Posting Credit Tiers and Qualifications for Executions in NonPenny Pilot Issues’’ to ‘‘Non-Customer, Non-Penny Pilot Posting Credit Tiers.’’ In addition to the foregoing, the Exchange also proposes to consistently utilize the term ‘‘Customer’’ to include Professional Customers, unless otherwise specified. Per the current Fee Schedule, regarding trade-related charges for standard options, the Exchange specifies that ‘‘[u]nless Professional Customer executions are specifically delineated, such executions will be treated as Customer executions for fee purposes.’’ 7 Although this language should (arguably) apply to the sections that follow, including incentive programs based on posted interest, the Exchange refers to both Customer and Professional Customer volume being counted towards the same incentives.8 Because the Exchange treats both Professional Customer and Customer volume the same for purposes of achieving the Customer Posting Tiers, the Exchange proposes to remove reference to Professional Customer from these sections of the Fee Schedule.’’ 9 7 See Fee Schedule, NYSE Arca Options: TradeRelated Changes for Standard Options. For additional clarity, the Exchange proposes to revise this sentence to put Customer in quotations and to add reference to credits. See proposed Fee Schedule, NYSE Arca Options: Trade-Related Changes for Standard Options (providing that ‘‘[u]nless Professional Customer executions are specifically delineated, such executions will be treated as ‘‘Customer’’ executions for fee/credit purposes). 8 See id., Customer and Professional Customer Monthly Posting Credit Tiers and Qualifications for Executions in Penny Pilot Issues; Customer and Professional Customer Incentive Program; and Customer and Professional Customer Posting Credit Tiers In Non Penny Pilot Issues (collectively, the ‘‘Customer Posting Tiers’’). 9 See proposed Fee Schedule, the Customer Posting Tiers. E:\FR\FM\04AUN1.SGM 04AUN1 36518 Federal Register / Vol. 82, No. 149 / Friday, August 4, 2017 / Notices Consistent with this change, the Exchange proposes the following changes to the Customer Posting Tiers: • The Exchange proposes to re-name the ‘‘Customer and Professional Customer Monthly Posting Credit Tiers and Qualifications for Executions in Penny Pilot Issues,’’ as ‘‘Customer Penny Pilot Posting Credit Tiers.’’ Consistent with certain of the conforming changes referenced above regarding how the applicable credits are the [sic] applied, the Exchange also proposes to modify the preamble to provide that ‘‘OTP Holders and OTP Firms meeting the qualifications below will receive the corresponding posting credit on all electronic executions of Customer posted interest in Penny Pilot Issues.’’ In addition, the Exchange proposes to update cross-references to this newly named table as appears in the Firm and Broker Dealer Monthly Fee Cap. • The Exchange proposes to add a title to signify the incentive program for ‘‘Customer and Professional Customer Posting Credit Tiers In Non Penny Pilot Issues,’’ which title would be ‘‘Customer Posting Credit Tiers in Non-Penny Pilot Issues.’’ The Exchange proposes to add a hyphen to the word ‘‘Non Penny’’ as appears in the table, for internal consistency. The Exchange also proposes to add a preamble to this table, which provides that ‘‘OTP Holders and OTP Firms meeting the qualifications below will receive the corresponding credit on all electronic executions of Customer posted interest in Non-Penny Pilot issues,’’ and to reference Endnotes 8 and 15, which describe what is included in eligible monthly volume and how that volume is calculated. Consistent with the proposed reference to Endnote 8 at the beginning of this table, which includes a description of qualifying ADV of Retail Orders of U.S. Equity Market Share on the NYSE Arca Equity Market, the Exchange proposes to remove duplicative references to Endnote 8 that appear throughout this table. • For avoidance of doubt, the Exchange proposes to add a sentence to Endnote 8 which provides that repeats that [sic] ‘‘[u]nless Professional Customer executions are specifically delineated, such executions will be treated as ‘‘Customer’’ executions executions [sic] in calculating qualifications for monthly posting credits or discounts.’’ The Exchange also proposes to define ‘‘Non-Customers,’’ as used in the Fee Schedule, to include Firms, Broker VerDate Sep<11>2014 15:13 Aug 03, 2017 Jkt 241001 Dealers, and Market Makers.10 Consistent with this change, the Exchange proposes to utilize, as shorthand, the defined term NonCustomer in place of references to Firms, Broker Dealers and Market Makers.11 Finally, the Exchange also proposes to re-locate the Market Maker Incentive For Penny Pilot Issues; the Market Maker Incentive For Non-Penny Pilot Issues; and the MM Tiers (collectively, the ‘‘MM Tables’’), without altering the substance of these tables.12 Specifically, the Exchange proposes to move the MM Tables immediately below the current Discount in Take Liquidity Fees for Professional Customer, Market Maker, Firm, and Broker Dealer Liquidity Removing Orders,13 which would place the MM Tables Immediately before the recently modified ‘‘Market Maker Penny Pilot and SPY Posting Credit Tiers.’’ 14 The Exchange believes moving table applicable to certain participants adjacent to each other would add to the clarity of the Fee Schedule and make it easier to navigate and comprehend. To the extent not specifically noted herein, the Exchange has also corrected certain typographical errors (such as missing hyphens or redundant endnote markings) as well as streamlined certain text to add clarity and transparency to the Fee Schedule. issuers, brokers or dealers. There are no changes to actual fees in this filing. The Exchange believes the proposed non-substantive changes to the Fee Schedule are reasonable, equitable, and not unfairly discriminatory because the changes would add clarity, transparency and internal consistency to the Fee Schedule making it easier to navigate and comprehend, which would benefit all market participants. For these reasons, the Exchange believes that the proposal is consistent with the Act. Options: Trade-Related Changes for Standard Options (providing that ‘‘Firms, Broker Dealers, and Market Makers are collectively referred to herein as ‘‘Non-Customers’’). 11 See proposed Fee Schedule, Discount in Take Liquidity Fees for Professional Customer and NonCustomer Liquidity Removing Interest; Take Fee Discount Qualification for Penny Pilot Issues (providing alternative threshold of at least 2.00% of TCADV from Professional Customer and NonCustomer Liquidity Removing interest in all issues.’’ 12 See supra note 4, the MM Cleanup Filing (includes modifications to the text of the MM Tables). 13 See supra note 10 (proposing to re-name this table). 14 See supra note 4, the MM Cleanup Filing (includes modifications to the text of the MM Tables). 15 15 U.S.C. 78f(b). 16 15 U.S.C. 78f(b)(4) and (5). III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action B. Self-Regulatory Organization’s Statement on Burden on Competition In accordance with Section 6(b)(8) of the Act,17 the Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange believes that the proposed textual changes are not intended to have any impact on competition, but instead are designed to make the Fee Schedule easier for market participants to navigate and digest, which is in the public interest. The Exchange notes that it operates in a highly competitive market in which market participants can readily favor competing venues. In such an environment, the Exchange must continually review, and consider 2. Statutory Basis adjusting, its fees and credits to remain competitive with other exchanges. For The Exchange believes that the proposed rule change is consistent with the reasons described above, the Section 6(b) of the Act,15 in general, and Exchange believes that the proposed rule change reflects this competitive furthers the objectives of Sections 6(b)(4) and (5) of the Act,16 in particular, environment. because it provides for the equitable C. Self-Regulatory Organization’s allocation of reasonable dues, fees, and Statement on Comments on the other charges among its members, Proposed Rule Change Received From issuers and other persons using its Members, Participants, or Others facilities and does not unfairly No written comments were solicited discriminate between customers, or received with respect to the proposed rule change. 10 See proposed Fee Schedule, NYSE Arca PO 00000 Frm 00163 Fmt 4703 Sfmt 4703 The foregoing rule change is effective upon filing pursuant to Section 19(b)(3)(A) 18 of the Act and subparagraph (f)(2) of Rule 19b–4 19 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 17 15 U.S.C. 78f(b)(8). U.S.C. 78s(b)(3)(A). 19 17 CFR 240.19b–4(f)(2). 18 15 E:\FR\FM\04AUN1.SGM 04AUN1 Federal Register / Vol. 82, No. 149 / Friday, August 4, 2017 / Notices 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) 20 of the Act to determine whether the proposed rule change should be approved or disapproved. submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR– NYSEArca–2017–79, and should be submitted on or before August 25, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.21 Eduardo A. Aleman, Assistant Secretary. 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: [FR Doc. 2017–16403 Filed 8–3–17; 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– NYSEArca-2017–79 on the subject line. AGENCY: 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–2017–79. 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 20 15 U.S.C. 78s(b)(2)(B). VerDate Sep<11>2014 15:13 Aug 03, 2017 maturities. Additionally, information is required on the terms, conditions and yield of the security being transferred. (1) Title: Form of Detached Assignment for U.S. Small Business Administration Loan Pool or Guaranteed Interest Certificate. Description of Respondents: Secondary Market Lenders. Estimated Annual Responses: 7,500. Estimated Annual Hour Burden: 11,250. Curtis B. Rich, Management Analyst. BILLING CODE 8011–01–P [FR Doc. 2017–16406 Filed 8–3–17; 8:45 am] SMALL BUSINESS ADMINISTRATION Reporting and Recordkeeping Requirements Under OMB Review Small Business Administration. ACTION: 30-Day notice. The Small Business Administration (SBA) is publishing this notice to comply with requirements of the Paperwork Reduction Act (PRA), which requires agencies to submit proposed reporting and recordkeeping requirements to OMB for review and approval, and to publish a notice in the Federal Register notifying the public that the agency has made such a submission. This notice also allows an additional 30 days for public comments. DATES: Submit comments on or before September 5, 2017. ADDRESSES: Comments should refer to the information collection by name and/ or OMB Control Number and should be sent to: Agency Clearance Officer, Curtis Rich, Small Business Administration, 409 3rd Street SW., 5th Floor, Washington, DC 20416; and SBA Desk Officer, Office of Information and Regulatory Affairs, Office of Management and Budget, New Executive Office Building, Washington, DC 20503. FOR FURTHER INFORMATION CONTACT: Curtis Rich, Agency Clearance Officer, (202) 205–7030 curtis.rich@sba.gov. Copies: A copy of the Form OMB 83– 1, supporting statement, and other documents submitted to OMB for review may be obtained from the Agency Clearance Officer. SUPPLEMENTARY INFORMATION: The Small Business Administration requires information to be disclosed to the buyer when a secondary market loan is transferred from one investor to another. This information includes a constant annual prepayment rate based upon the seller’s analysis of prepayment histories of SBA guaranteed loans with similar SUMMARY: 21 17 Jkt 241001 36519 PO 00000 CFR 200.30–3(a)(12). Frm 00164 Fmt 4703 Sfmt 4703 BILLING CODE 8025–01–P DEPARTMENT OF STATE [Public Notice: 10071] Notice of Public Meeting of the International Telecommunication Advisory Committee and Preparations for Upcoming International Telecommunications Meetings This notice announces a meeting of the Department of State’s International Telecommunication Advisory Committee (ITAC). The ITAC will meet on September 07, 2017 at 2:00 p.m. ET at 1120 20th St., 10th Floor, Washington, DC 20036. At this meeting, the ITAC will discuss preparations for the International Telecommunication Union (ITU) 2018 Plenipotentiary Conference (PP–18), review the results of recent multilateral meetings, and discuss preparations for upcoming multilateral meetings at ITU, the Organization for Economic Cooperation and Development (OECD), and the Asia Pacific Economic Cooperation (APEC). In Federal Register Notice 9920 1 published on March 20, 2017, the Department of State sought advice from stakeholders and interested parties to inform its upcoming preparations for PP–18. No written comments were received. The meeting will focus on the following topics: • Initiation of 2018 ITU Plenipotentiary Conference (PP–18) Preparatory Process • Results of Recent Multilateral Meetings Æ ITU Council-17 Æ Inter-American Telecommunication Commission (CITEL) D Permanent Consultative Committee on Telecommunication/ICT PCC–I 1 https://www.federalregister.gov/documents/ 2017/03/20/2017-05456/notice-of-public-meetingof-the-international-telecommunication-advisorycommittee-and-preparations. E:\FR\FM\04AUN1.SGM 04AUN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 82, Number 149 (Friday, August 4, 2017)]
[Notices]
[Pages 36516-36519]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-16403]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81268; File No. SR-NYSEARCA-2017-79]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Modify the NYSE 
Arca Options Fee Schedule

July 31, 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 20, 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, 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.

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[[Page 36517]]

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to modify the NYSE Arca Options Fee Schedule 
(``Fee Schedule'') to add clarification and consistency, but the 
Exchange is not proposing any changes to its fees. The Exchange 
proposes to implement the fee change effective July 20, 2017. The 
proposed rule change is available on the Exchange's Web site at 
www.nyse.com, at the principal office of the Exchange, and at the 
Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the self-regulatory organization 
included statements concerning the purpose of, and basis for, the 
proposed rule change and discussed any comments it received on the 
proposed rule change. The text of those statements may be examined at 
the places specified in Item IV below. The Exchange has prepared 
summaries, set forth in sections A, B, and C below, of the most 
significant parts of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of this filing is to make a number of textual changes 
designed to clarify and add consistency to the Fee Schedule. The 
Exchange is not proposing to make any substantive changes to its 
current fees.
    Earlier this month, July 2017, the Exchange submitted a filing that 
included clarifying changes to certain tables regarding Market Maker 
incentives (the ``MM Cleanup Filing'').\4\ The first sets of proposed 
changes are conforming changes, which are designed to align the text 
used in other incentive programs described in the Fee Schedule with 
those modified in the MM Cleanup Filing. Specifically, these conforming 
changes include:
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release No. 81140 (July 13, 
2017), 82 FR 33194 (July 19, 2017) (SR-NYSEArca-2017-77).
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     The Exchange proposes to re-locate the reference to 
Endnote 15 from the beginning [sic] to the end [sic] of each of the 
following tables: ``Customer and Professional Customer Monthly Posting 
Credit Tiers and Qualifications for Executions in Penny Pilot Issues''; 
``Customer and Professional Customer Incentive Program''; and [sic] 
``Non-Customer Monthly Posting Credit Tiers and Qualifications for 
Executions in Non-Penny Pilot Issues''; ``Take Fee Discount 
Qualification for Penny Pilot Issues''; and ``Take Fee Discount 
Qualification for Non-Penny Pilot Issues'' (the ``Modified Tables''). 
Endnote 15 provides that the qualification thresholds set forth in the 
applicable tables ``[i]ncludes transaction volume from the OTP Holder's 
or OTP Firm's affiliates or its Appointed OFP or Appointed MM.'' \5\ 
Consistent with this proposed change, the Exchange proposes to remove 
the language that appears at the end of each of the Modified Tables 
providing that volume of an Appointed MM or Appointed OFP may be 
included because it would be duplicative of text contained in Endnote 
15.
---------------------------------------------------------------------------

    \5\ See Fee Schedule, Endnote 15.
---------------------------------------------------------------------------

     The Exchange proposes to replace reference to ``Total 
Industry Customer equity and ETF option average daily volume'' with 
``TCADV'' (as defined in Endnote 8) \6\ and to use this shorthand 
reference in the Modified Tables. Given that TCADV is defined in 
Endnote 8 and given that the ``Customer and Professional Customer 
Monthly Posting Credit Tiers and Qualifications for Executions in Penny 
Pilot Issues'' includes reference to Endnote 8, the Exchange proposes 
to remove the following language from this table because it is 
duplicative: ``Qualifications based in part on Total Industry Customer 
equity and ETF option average daily volume (``TCADV'').''
---------------------------------------------------------------------------

    \6\ See supra note 4, the MM Cleanup Filing (adding definition 
of TCADV).
---------------------------------------------------------------------------

     In each of the Modified Tables, the Exchange proposes to 
replace reference to ``Posted Orders'' with ``posted interest'' and any 
reference to ``orders'' with ``interest'' to make clear that, where 
applicable, liquidity may include orders or quotes.
     For consistency, the Exchange proposes to remove any 
capitalization from ``issues'' in reference to ``all issues'' in the 
Modified Tables. The Exchange also proposes to capitalize ``Issues'' as 
relates to ``Penny Pilot Issues,'' in the preamble to the ``Customer 
and Professional Customer Monthly Posting Credit Tiers and 
Qualifications for Executions in Penny Pilot Issues,'' and as relates 
to ``non-Penny Pilot Issues,'' in the preamble to the ``Non-Customer 
Monthly Posting Credit Tiers and Qualifications for Executions in Non-
Penny Pilot Issues.''
     The Exchange also proposes to add a comma and, where 
applicable, the word ``or'', to signify an alternative qualification 
basis in certain of the Modified Tables as well as to remove any 
capitalization of the word ``Plus'' as relates to any alterative 
qualification bases in the Modified Tables.
     The Exchange also proposes to alter the language in the 
Modified Tables to clarify how the credits are applied, i.e., that 
credit is applied to ``electronic executions of [the applicable] posted 
interest'' in the applicable securities. For consistency and clarity, 
the Exchange proposes to add ``Electronic'' to, as well as to 
capitalize ``Non-Penny,'' in the table heading for the ``Non-Customer 
Monthly Posting Credit Tiers and Qualifications for Executions in Non-
Penny Pilot Issues.''
     For ease of reference, the Exchange proposes to rename the 
``Non-Customer Monthly Posting Credit Tiers and Qualifications for 
Executions in Non-Penny Pilot Issues'' to ``Non-Customer, Non-Penny 
Pilot Posting Credit Tiers.''
    In addition to the foregoing, the Exchange also proposes to 
consistently utilize the term ``Customer'' to include Professional 
Customers, unless otherwise specified. Per the current Fee Schedule, 
regarding trade-related charges for standard options, the Exchange 
specifies that ``[u]nless Professional Customer executions are 
specifically delineated, such executions will be treated as Customer 
executions for fee purposes.'' \7\ Although this language should 
(arguably) apply to the sections that follow, including incentive 
programs based on posted interest, the Exchange refers to both Customer 
and Professional Customer volume being counted towards the same 
incentives.\8\ Because the Exchange treats both Professional Customer 
and Customer volume the same for purposes of achieving the Customer 
Posting Tiers, the Exchange proposes to remove reference to 
Professional Customer from these sections of the Fee Schedule.'' \9\
---------------------------------------------------------------------------

    \7\ See Fee Schedule, NYSE Arca Options: Trade-Related Changes 
for Standard Options. For additional clarity, the Exchange proposes 
to revise this sentence to put Customer in quotations and to add 
reference to credits. See proposed Fee Schedule, NYSE Arca Options: 
Trade-Related Changes for Standard Options (providing that 
``[u]nless Professional Customer executions are specifically 
delineated, such executions will be treated as ``Customer'' 
executions for fee/credit purposes).
    \8\ See id., Customer and Professional Customer Monthly Posting 
Credit Tiers and Qualifications for Executions in Penny Pilot 
Issues; Customer and Professional Customer Incentive Program; and 
Customer and Professional Customer Posting Credit Tiers In Non Penny 
Pilot Issues (collectively, the ``Customer Posting Tiers'').
    \9\ See proposed Fee Schedule, the Customer Posting Tiers.

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[[Page 36518]]

    Consistent with this change, the Exchange proposes the following 
changes to the Customer Posting Tiers:
     The Exchange proposes to re-name the ``Customer and 
Professional Customer Monthly Posting Credit Tiers and Qualifications 
for Executions in Penny Pilot Issues,'' as ``Customer Penny Pilot 
Posting Credit Tiers.'' Consistent with certain of the conforming 
changes referenced above regarding how the applicable credits are the 
[sic] applied, the Exchange also proposes to modify the preamble to 
provide that ``OTP Holders and OTP Firms meeting the qualifications 
below will receive the corresponding posting credit on all electronic 
executions of Customer posted interest in Penny Pilot Issues.'' In 
addition, the Exchange proposes to update cross-references to this 
newly named table as appears in the Firm and Broker Dealer Monthly Fee 
Cap.
     The Exchange proposes to add a title to signify the 
incentive program for ``Customer and Professional Customer Posting 
Credit Tiers In Non Penny Pilot Issues,'' which title would be 
``Customer Posting Credit Tiers in Non-Penny Pilot Issues.'' The 
Exchange proposes to add a hyphen to the word ``Non Penny'' as appears 
in the table, for internal consistency. The Exchange also proposes to 
add a preamble to this table, which provides that ``OTP Holders and OTP 
Firms meeting the qualifications below will receive the corresponding 
credit on all electronic executions of Customer posted interest in Non-
Penny Pilot issues,'' and to reference Endnotes 8 and 15, which 
describe what is included in eligible monthly volume and how that 
volume is calculated. Consistent with the proposed reference to Endnote 
8 at the beginning of this table, which includes a description of 
qualifying ADV of Retail Orders of U.S. Equity Market Share on the NYSE 
Arca Equity Market, the Exchange proposes to remove duplicative 
references to Endnote 8 that appear throughout this table.
     For avoidance of doubt, the Exchange proposes to add a 
sentence to Endnote 8 which provides that repeats that [sic] ``[u]nless 
Professional Customer executions are specifically delineated, such 
executions will be treated as ``Customer'' executions executions [sic] 
in calculating qualifications for monthly posting credits or 
discounts.''
    The Exchange also proposes to define ``Non-Customers,'' as used in 
the Fee Schedule, to include Firms, Broker Dealers, and Market 
Makers.\10\ Consistent with this change, the Exchange proposes to 
utilize, as shorthand, the defined term Non-Customer in place of 
references to Firms, Broker Dealers and Market Makers.\11\
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    \10\ See proposed Fee Schedule, NYSE Arca Options: Trade-Related 
Changes for Standard Options (providing that ``Firms, Broker 
Dealers, and Market Makers are collectively referred to herein as 
``Non-Customers'').
    \11\ See proposed Fee Schedule, Discount in Take Liquidity Fees 
for Professional Customer and Non-Customer Liquidity Removing 
Interest; Take Fee Discount Qualification for Penny Pilot Issues 
(providing alternative threshold of at least 2.00% of TCADV from 
Professional Customer and Non-Customer Liquidity Removing interest 
in all issues.''
---------------------------------------------------------------------------

    Finally, the Exchange also proposes to re-locate the Market Maker 
Incentive For Penny Pilot Issues; the Market Maker Incentive For Non-
Penny Pilot Issues; and the MM Tiers (collectively, the ``MM Tables''), 
without altering the substance of these tables.\12\ Specifically, the 
Exchange proposes to move the MM Tables immediately below the current 
Discount in Take Liquidity Fees for Professional Customer, Market 
Maker, Firm, and Broker Dealer Liquidity Removing Orders,\13\ which 
would place the MM Tables Immediately before the recently modified 
``Market Maker Penny Pilot and SPY Posting Credit Tiers.'' \14\ The 
Exchange believes moving table applicable to certain participants 
adjacent to each other would add to the clarity of the Fee Schedule and 
make it easier to navigate and comprehend.
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    \12\ See supra note 4, the MM Cleanup Filing (includes 
modifications to the text of the MM Tables).
    \13\ See supra note 10 (proposing to re-name this table).
    \14\ See supra note 4, the MM Cleanup Filing (includes 
modifications to the text of the MM Tables).
---------------------------------------------------------------------------

    To the extent not specifically noted herein, the Exchange has also 
corrected certain typographical errors (such as missing hyphens or 
redundant endnote markings) as well as streamlined certain text to add 
clarity and transparency to the Fee Schedule.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\15\ in general, and furthers the 
objectives of Sections 6(b)(4) and (5) of the Act,\16\ 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. There are no changes to actual 
fees in this filing.
---------------------------------------------------------------------------

    \15\ 15 U.S.C. 78f(b).
    \16\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

    The Exchange believes the proposed non-substantive changes to the 
Fee Schedule are reasonable, equitable, and not unfairly discriminatory 
because the changes would add clarity, transparency and internal 
consistency to the Fee Schedule making it easier to navigate and 
comprehend, which would benefit all market participants.
    For these reasons, the Exchange believes that the proposal is 
consistent with the Act.

B. Self-Regulatory Organization's Statement on Burden on Competition

    In accordance with Section 6(b)(8) of the Act,\17\ the Exchange 
does not believe that the proposed rule change will impose any burden 
on competition that is not necessary or appropriate in furtherance of 
the purposes of the Act. The Exchange believes that the proposed 
textual changes are not intended to have any impact on competition, but 
instead are designed to make the Fee Schedule easier for market 
participants to navigate and digest, which is in the public interest.
---------------------------------------------------------------------------

    \17\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------

    The Exchange notes that it operates in a highly competitive market 
in which market participants can readily favor competing venues. In 
such an environment, the Exchange must continually review, and consider 
adjusting, its fees and credits to remain competitive with other 
exchanges. For the reasons described above, the Exchange believes that 
the proposed rule change reflects this competitive environment.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change is effective upon filing pursuant to 
Section 19(b)(3)(A) \18\ of the Act and subparagraph (f)(2) of Rule 
19b-4 \19\ thereunder, because it establishes a due, fee, or other 
charge imposed by the Exchange.
---------------------------------------------------------------------------

    \18\ 15 U.S.C. 78s(b)(3)(A).
    \19\ 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

[[Page 36519]]

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) \20\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
---------------------------------------------------------------------------

    \20\ 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-NYSEArca-2017-79 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-2017-79. 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-2017-79, and should 
be submitted on or before August 25, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\21\
---------------------------------------------------------------------------

    \21\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-16403 Filed 8-3-17; 8:45 am]
 BILLING CODE 8011-01-P

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