Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Change To Amend Its Price List, 43059-43061 [2017-19376]
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Federal Register / Vol. 82, No. 176 / Wednesday, September 13, 2017 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–81547; File No. SR–
NYSEAMER–2017–11]
Self-Regulatory Organizations; NYSE
American LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Change To Amend Its Price List
September 7, 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 August
29, 2017, NYSE American LLC (the
‘‘Exchange’’ or ‘‘NYSE American’’) filed
with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the selfregulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
Price List to (1) delete fees and credits
that are not applicable to trading on the
Pillar trading platform, and (2) prorate
Port Fees to the number of trading days
in a billing month that a port is utilized.
The Exchange proposes to implement
the rule change on September 1, 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.
sradovich on DSK3GMQ082PROD with NOTICES
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
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1. Purpose
The Exchange proposes to amend its
Price List to (1) delete fees and credits
that are not applicable to trading on the
Pillar trading platform, and (2) prorate
Port Fees to the number of trading days
in a billing month that a port is utilized.
The Exchange proposes to implement
the rule change on September 1, 2017.
Deletion of Non-Pillar Fees and Credits
To effect its transition of cash equities
trading to Pillar, the Exchange amended
its Price List to adopt a new pricing
model for trading on the Pillar
platform.4 Because specified transaction
fees and credits applicable to trading
cash equities on a Floor-based trading
platform are not applicable to trading on
Pillar, the Exchange designated certain
fees and credits with the following
preamble: ‘‘The following Fees and
Credits are not Applicable to Trading on
the Pillar Trading Platform.’’ 5
On July 24, 2017, the Exchange
transitioned all cash equities trading to
the Pillar platform. Because transaction
fees and credits that are not applicable
to trading on the Pillar trading platform
are now obsolete, the Exchange
proposes to delete the following fees
and credits in their entirety: 6
• Equity Transaction Fees and Credits
for Listed Securities and the following
subheadings:
Æ Transactions in Securities with a
Per Share Price of $1.00 or More;
Æ Transactions in Securities with a
Per Share Price Below $1.00;
Æ Fees and Credits Applicable to
Designated Market Makers on
Transactions in Securities with a Per
Share Price of $1.00 or more;
Æ Fees and Credits Applicable to
Designated Market Makers on
Transactions in Securities with a Per
Share Price below $1.00;
Æ Credits Applicable to Supplemental
Liquidity Providers; and
Æ Fees and Credits Applicable to
Executions in the Retail Liquidity
Program.
• Transaction Fees and Credits For
Non-ETP Securities Traded Pursuant to
Unlisted Trading Privileges and the
following subheadings:
4 See Securities Exchange Act Release Nos. [sic]
81228 (July 27, 2017), 82 FR 36012 (August 2, 2017)
(SR–NYSEMKT–2017–43).
5 See id., 82 FR at 36012–13.
6 The Exchange proposes to delete these fees and
credits in their entirety, including (1) the section
headings of all of credits and fees being deleted, (2)
all associated footnotes, and (3) the recently added
preamble.
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43059
Æ Fees and Credits applicable to
Market Participants;
Æ Fees and Credits applicable to
Designated Market Makers (DMMs);
Æ Fees and Credits applicable to
Supplemental Liquidity Providers
(SLPs); and
Æ Fees and Credits Applicable to
Executions in the Retail Liquidity
Program.
• Transaction Fees and Credits For
ETPs Traded Pursuant to Unlisted
Trading Privileges and the following
subheadings:
Æ Fees and Credits applicable to
Market Participants;
Æ Fees and Credits applicable to
DMMs;
Æ Fees and Credits applicable to
SLPs;
Æ Fees and Credits Applicable to
Executions in the Retail Liquidity
Program; and
Æ Crossing Sessions
• Port Fees.
*
*
*
*
*
The Exchange proposes to delete the
following additional fees as being
inapplicable to trading on Pillar:
Æ Risk Management Gateway
(‘‘RMG’’);
Æ Equipment fees;
Æ Radio Paging Service;
Æ Financial Vendor Services;
Æ Cellular Phones;
Æ Booth Telephone System;
Æ Service Charges; and
Æ System Processing Fees, comprising
fees for the Online Comparison System
(OCS) and Merged Order Report.
The RMG is no longer supported in
Pillar and the various equipment fees
relate to trading cash equities on a
Floor-based trading platform, and are
thus obsolete. Similarly, the Exchange
no longer utilizes OCS or makes Merged
Order Reports available.
The Exchange also proposes to delete
footnotes 17–19 designated as
‘‘Reserved’’ in the ‘‘CRD Fees for
Member Organizations that are not
FINRA Members’’ section of the Price
List. The Exchange believes it would
reduce confusion and promote
transparency to delete footnotes that do
not have any substantive content.
The Exchange also proposes a
technical, non-substantive amendment
to replace the heading ‘‘Pillar Trading
Platform’’ with ‘‘NYSE American
Trading Fees and Credits.’’
Proration of Port Fees
Until October 1, 2017, the Exchange is
not charging market participants for the
use of order/quote entry ports or for the
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Federal Register / Vol. 82, No. 176 / Wednesday, September 13, 2017 / Notices
use of drop copy ports.7 Thereafter, a
$250 per port per month fee will apply
for order/quote entry and drop copy
ports.
The Exchange proposes to amend the
Price List to add a footnote to the
heading of Section V (Port Fees)
providing that port fees for order/quote
entry and drop copies will be prorated
to the number of trading days in a
billing month.
*
*
*
*
*
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
sradovich on DSK3GMQ082PROD with NOTICES
The proposed rule change is
consistent with Section 6(b) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),8 in general, and furthers the
objectives of Section 6(b)(4) 9 of the Act,
in particular, because it provides for the
equitable allocation of reasonable dues,
fees, and other charges among its
members, issuers and other persons
using its facilities and does not unfairly
discriminate between customers,
issuers, brokers or dealers. The
Exchange also believes that the
proposed rule change is consistent with
Section 6(b)(5) of the Act,10 in particular
in that it is designed to promote just and
equitable principles of trade, to foster
cooperation and coordination with
persons engaged in facilitating
transactions in securities, 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.
The Exchange believes that its
proposed rule change to eliminate fees
and credits that are not applicable to
trading on Pillar would remove
impediments to and perfect the
mechanism of a free and open market
and a national market system because it
would eliminate fees and credits that
are now obsolete. Eliminating obsolete
fees and credits would reduce potential
confusion and add transparency and
clarity to the Exchange’s rules, thereby
ensuring that members, regulators, and
the public can more easily navigate and
understand the Exchange’s rulebook.
7 Order/quote entry ports provide connectivity to
the Exchange’s trading systems for entry of orders
and/or quotes. Drop copy ports allow for the receipt
of ‘‘drop copies’’ of order or transaction
information.
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(4).
10 15 U.S.C. 78f(b)(5).
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The Exchange also believes that
prorating the fees for order/quote entry
and drop copy ports is reasonable
because it would provide a nexus
between the Exchange’s charge for use
of its ports and the number of trading
days in a billing month that the market
participant utilizes the applicable port.
The Exchange believes that the
proposed prorating of monthly port fees
rebate is equitable and not unfairly
discriminatory because it directly ties
the monthly port fees to the number of
trading days in that billing month. The
Exchange also believes that the
proposed prorating is equitable and not
unfairly discriminatory because all
market participants utilizing ports to
connect to the Exchange would be
treated the same.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
In accordance with Section 6(b)(8) of
the Act,11 the Exchange believes that the
proposed rule change would not impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed rule change is not intended to
address any competitive issues, but
rather it is designed to eliminate
obsolete fees and credits.
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) 12 of the Act and
subparagraph (f)(2) of Rule 19b–4 13
thereunder, because it establishes a due,
fee, or other charge imposed by the
Exchange.
At any time within 60 days of the
filing of such proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
under Section 19(b)(2)(B) 14 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NYSEAMER–2017–11 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–NYSEAMER–2017–11. 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
12 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
14 15 U.S.C. 78s(b)(2)(B).
13 17
11 15
PO 00000
U.S.C. 78f(b)(8).
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Federal Register / Vol. 82, No. 176 / Wednesday, September 13, 2017 / Notices
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–
NYSEAMER–2017–11 and should be
submitted on or before October 4, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–19376 Filed 9–12–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–81550; File No. SR–NSCC–
2017–010]
Self-Regulatory Organizations;
National Securities Clearing
Corporation; Order Approving
Proposed Rule Change To Expand the
Application of the Family-Issued
Securities Charge
sradovich on DSK3GMQ082PROD with NOTICES
September 7, 2017.
On July 10, 2017, National Securities
Clearing Corporation (‘‘NSCC’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) proposed
rule change SR–NSCC–2017–010
(‘‘Proposed Rule Change’’) pursuant to
Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder.2 The Proposed Rule
Change was published for comment in
15 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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the Federal Register on July 31, 2017.3
The Commission did not receive any
comments on the Proposed Rule
Change. For the reasons discussed
below, the Commission approves the
Proposed Rule Change.
I. Description of the Proposed Rule
Change
The Proposed Rule Change is a
proposal by NSCC to further address
specific wrong-way risk 4 that is present
when NSCC acts as central counterparty
to a transaction with an NSCC member
(‘‘Member’’) where the underlying
securities are securities issued by such
Member or an affiliate of such Member
(‘‘family-issued securities’’).5 Currently,
NSCC applies a targeted margin charge
to address the specific wrong-way risk
of family-issued securities transactions
(‘‘FIS Charge’’) where the Member is on
NSCC’s Watch List.6 NSCC believes that
Members on the Watch List present a
higher credit risk (i.e., a greater risk of
defaulting on their settlement
obligations), compared to Members not
on the Watch List.7 As such, the familyissued securities of Members on the
Watch List currently receive a FIS
Charge because of the increased credit
risk presented by such Members.8 As
described in detail below, NSCC
3 Securities Exchange Act Release No. 81203 (July
25, 2017), 82 FR 35563 (July 31, 2017) (SR–NSCC–
2017–010) (‘‘Notice’’). NSCC also filed a related
advance notice with the Commission pursuant to
Section 806(e)(1) of the Payment, Clearing, and
Settlement Supervision Act of 2010 and Rule 19b–
4(n)(1) under the Act. 15 U.S.C. 5465(e)(1) and 17
CFR 240.19b–4(n)(1). The advance notice was
published in the Federal Register on August 2,
2017. Securities Exchange Act Release No. 81286
(August 2, 2017), 82 FR 37141 (August 8, 2017)
(SR–NSCC–2017–804). The Commission did not
receive any comments on that proposal.
4 Specific wrong-way risk is the risk that an
exposure to a counterparty is highly likely to
increase when the creditworthiness of that
counterparty is deteriorating. See Principles for
financial market infrastructures, issued by the
Committee on Payment and Settlement Systems and
the Technical Committee of the International
Organization of Securities Commissions 47 n.65
(April 2012), available at https://www.bis.org/publ/
cpss101a.pdf.
5 Notice, 82 at 35563–64. As part of this proposal,
NSCC proposes to define in its rules that, for a
given Member, a family-issued security is a security
that was issued by such Member or an affiliate of
such Member. Notice, 82 at 35563.
6 Notice, 82 at 35563. As part of its ongoing
monitoring of its membership, NSCC utilizes an
internal credit risk rating matrix to rate its risk
exposures to its Members based on a scale from 1
(the strongest) to 7 (the weakest). Members that fall
within the weakest three rating categories (i.e., 5, 6,
and 7) are placed on NSCC’s ‘‘Watch List’’ and, as
provided under NSCC’s Rules and Procedures
(‘‘Rules’’), may be subject to enhanced surveillance
or additional margin charges. See Section 4 of Rule
2B and Section I(B)(1) of Procedure XV of NSCC’s
Rules, available at https://dtcc.com/∼/media/Files/
Downloads/legal/rules/nscc_rules.pdf.
7 Notice, 82 at 35564.
8 Id.
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43061
proposes in the Proposed Rule Change
to expand the application of the FIS
Charge to all Members, regardless of a
Member’s Watch List status, but still
maintain a higher FIS Charge for
Members that present a greater credit
risk to NSCC, such as Members on the
Watch List.9
Currently, in calculating a Watch List
Member’s overall margin charge (i.e., a
Watch List Member’s required deposit
to NSCC’s clearing fund), NSCC
excludes the Member’s net, unsettled
long position in family-issued securities
from the volatility component of the
margin calculation (‘‘VaR Charge’’).10
Instead, for such unsettled long
positions, NSCC calculates the required
margin (i.e., the FIS Charge) by
multiplying the position value by a set
percentage, which is determined based
on a Member’s rating on NSCC’s
internal credit risk rating matrix.11
NSCC applies this separate margin
calculation to deal with specific wrongway risk that arises from these positions
because NSCC has to liquidate the
unsettled family-issued security long
positions in the Member’s portfolio to
manage the default.12 Given that the
Member’s default would likely
adversely affect NSCC’s ability to
liquidate such positions at full value
(because the value of the family-issued
securities will decline in response to the
Member’s default), NSCC applies the
FIS Charge to try to address the risk of
a shortfall.13 According to NSCC, the
FIS Charge constitutes a more
conservative approach to collecting
margin on family-issued security
positions than what may be achieved by
applying the VaR Charge, which does
not recognize the relationship between
the Member and the family-issued
securities.14
Although the risk of default by
Members that are not on the Watch List
is lower than Members on the Watch
9 Id.
10 Id.
11 Id. More specifically, fixed-income securities
that are family-issued securities are charged a rate
of no less than 80 percent for firms that are rated
6 or 7 on the credit risk rating matrix, and no less
than 40 percent for firms that are rated 5 on the
credit risk rating matrix. Equity securities that are
family-issued securities are charged a rate of 100
percent for firms that are rated 6 or 7 on the credit
risk rating matrix, and no less than 50 percent for
firms that are rated 5 on the credit risk rating
matrix. See Section I(B)(1) of Procedure XV of
NSCC’s Rules, available at https://dtcc.com/∼/
media/Files/Downloads/legal/rules/nscc_rules.pdf.
12 Notice, 82 at 35564. In a default scenario, NSCC
would receive the family-issued securities from a
Member’s guaranteed long transactions and would
have to liquidate the holding to unwind NSCC’s
position. Id.
13 Id.
14 Id.
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]]>Agencies
[Federal Register Volume 82, Number 176 (Wednesday, September 13, 2017)]
[Notices]
[Pages 43059-43061]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-19376]
[[Page 43059]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-81547; File No. SR-NYSEAMER-2017-11]
Self-Regulatory Organizations; NYSE American LLC; Notice of
Filing and Immediate Effectiveness of Proposed Change To Amend Its
Price List
September 7, 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 August 29, 2017, NYSE American LLC (the ``Exchange'' or
``NYSE American'') 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 amend its Price List to (1) delete fees
and credits that are not applicable to trading on the Pillar trading
platform, and (2) prorate Port Fees to the number of trading days in a
billing month that a port is utilized. The Exchange proposes to
implement the rule change on September 1, 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
The Exchange proposes to amend its Price List to (1) delete fees
and credits that are not applicable to trading on the Pillar trading
platform, and (2) prorate Port Fees to the number of trading days in a
billing month that a port is utilized.
The Exchange proposes to implement the rule change on September 1,
2017.
Deletion of Non-Pillar Fees and Credits
To effect its transition of cash equities trading to Pillar, the
Exchange amended its Price List to adopt a new pricing model for
trading on the Pillar platform.\4\ Because specified transaction fees
and credits applicable to trading cash equities on a Floor-based
trading platform are not applicable to trading on Pillar, the Exchange
designated certain fees and credits with the following preamble: ``The
following Fees and Credits are not Applicable to Trading on the Pillar
Trading Platform.'' \5\
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release Nos. [sic] 81228 (July
27, 2017), 82 FR 36012 (August 2, 2017) (SR-NYSEMKT-2017-43).
\5\ See id., 82 FR at 36012-13.
---------------------------------------------------------------------------
On July 24, 2017, the Exchange transitioned all cash equities
trading to the Pillar platform. Because transaction fees and credits
that are not applicable to trading on the Pillar trading platform are
now obsolete, the Exchange proposes to delete the following fees and
credits in their entirety: \6\
---------------------------------------------------------------------------
\6\ The Exchange proposes to delete these fees and credits in
their entirety, including (1) the section headings of all of credits
and fees being deleted, (2) all associated footnotes, and (3) the
recently added preamble.
---------------------------------------------------------------------------
Equity Transaction Fees and Credits for Listed Securities
and the following subheadings:
[cir] Transactions in Securities with a Per Share Price of $1.00 or
More;
[cir] Transactions in Securities with a Per Share Price Below
$1.00;
[cir] Fees and Credits Applicable to Designated Market Makers on
Transactions in Securities with a Per Share Price of $1.00 or more;
[cir] Fees and Credits Applicable to Designated Market Makers on
Transactions in Securities with a Per Share Price below $1.00;
[cir] Credits Applicable to Supplemental Liquidity Providers; and
[cir] Fees and Credits Applicable to Executions in the Retail
Liquidity Program.
Transaction Fees and Credits For Non-ETP Securities Traded
Pursuant to Unlisted Trading Privileges and the following subheadings:
[cir] Fees and Credits applicable to Market Participants;
[cir] Fees and Credits applicable to Designated Market Makers
(DMMs);
[cir] Fees and Credits applicable to Supplemental Liquidity
Providers (SLPs); and
[cir] Fees and Credits Applicable to Executions in the Retail
Liquidity Program.
Transaction Fees and Credits For ETPs Traded Pursuant to
Unlisted Trading Privileges and the following subheadings:
[cir] Fees and Credits applicable to Market Participants;
[cir] Fees and Credits applicable to DMMs;
[cir] Fees and Credits applicable to SLPs;
[cir] Fees and Credits Applicable to Executions in the Retail
Liquidity Program; and
[cir] Crossing Sessions
Port Fees.
* * * * *
The Exchange proposes to delete the following additional fees as
being inapplicable to trading on Pillar:
[cir] Risk Management Gateway (``RMG'');
[cir] Equipment fees;
[cir] Radio Paging Service;
[cir] Financial Vendor Services;
[cir] Cellular Phones;
[cir] Booth Telephone System;
[cir] Service Charges; and
[cir] System Processing Fees, comprising fees for the Online
Comparison System (OCS) and Merged Order Report.
The RMG is no longer supported in Pillar and the various equipment
fees relate to trading cash equities on a Floor-based trading platform,
and are thus obsolete. Similarly, the Exchange no longer utilizes OCS
or makes Merged Order Reports available.
The Exchange also proposes to delete footnotes 17-19 designated as
``Reserved'' in the ``CRD Fees for Member Organizations that are not
FINRA Members'' section of the Price List. The Exchange believes it
would reduce confusion and promote transparency to delete footnotes
that do not have any substantive content.
The Exchange also proposes a technical, non-substantive amendment
to replace the heading ``Pillar Trading Platform'' with ``NYSE American
Trading Fees and Credits.''
Proration of Port Fees
Until October 1, 2017, the Exchange is not charging market
participants for the use of order/quote entry ports or for the
[[Page 43060]]
use of drop copy ports.\7\ Thereafter, a $250 per port per month fee
will apply for order/quote entry and drop copy ports.
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\7\ Order/quote entry ports provide connectivity to the
Exchange's trading systems for entry of orders and/or quotes. Drop
copy ports allow for the receipt of ``drop copies'' of order or
transaction information.
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The Exchange proposes to amend the Price List to add a footnote to
the heading of Section V (Port Fees) providing that port fees for
order/quote entry and drop copies will be prorated to the number of
trading days in a billing month.
* * * * *
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 proposed rule change is consistent with Section 6(b) of the
Securities Exchange Act of 1934 (the ``Act''),\8\ in general, and
furthers the objectives of Section 6(b)(4) \9\ of the Act, in
particular, because it provides for the equitable allocation of
reasonable dues, fees, and other charges among its members, issuers and
other persons using its facilities and does not unfairly discriminate
between customers, issuers, brokers or dealers. The Exchange also
believes that the proposed rule change is consistent with Section
6(b)(5) of the Act,\10\ in particular in that it is designed to promote
just and equitable principles of trade, to foster cooperation and
coordination with persons engaged in facilitating transactions in
securities, 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.
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(4).
\10\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that its proposed rule change to eliminate
fees and credits that are not applicable to trading on Pillar would
remove impediments to and perfect the mechanism of a free and open
market and a national market system because it would eliminate fees and
credits that are now obsolete. Eliminating obsolete fees and credits
would reduce potential confusion and add transparency and clarity to
the Exchange's rules, thereby ensuring that members, regulators, and
the public can more easily navigate and understand the Exchange's
rulebook.
The Exchange also believes that prorating the fees for order/quote
entry and drop copy ports is reasonable because it would provide a
nexus between the Exchange's charge for use of its ports and the number
of trading days in a billing month that the market participant utilizes
the applicable port. The Exchange believes that the proposed prorating
of monthly port fees rebate is equitable and not unfairly
discriminatory because it directly ties the monthly port fees to the
number of trading days in that billing month. The Exchange also
believes that the proposed prorating is equitable and not unfairly
discriminatory because all market participants utilizing ports to
connect to the Exchange would be treated the same.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\11\ the Exchange
believes that the proposed rule change would not impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act. The proposed rule change is not intended to
address any competitive issues, but rather it is designed to eliminate
obsolete fees and credits.
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\11\ 15 U.S.C. 78f(b)(8).
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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) \12\ of the Act and subparagraph (f)(2) of Rule
19b-4 \13\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(2).
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At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \14\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\14\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-NYSEAMER-2017-11 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-NYSEAMER-2017-11. 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
[[Page 43061]]
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-NYSEAMER-2017-11 and should
be submitted on or before October 4, 2017.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
Eduardo A. Aleman,
Assistant Secretary.
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\15\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2017-19376 Filed 9-12-17; 8:45 am]
BILLING CODE 8011-01-P
