Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its Price List, 44016-44018 [2017-19964]

Download as PDF 44016 Federal Register / Vol. 82, No. 181 / Wednesday, September 20, 2017 / Notices For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.17 Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017–19965 Filed 9–19–17; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–81612; File No. SR–NYSE– 2017–47] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its Price List 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 September 14, 2017. 1. Purpose 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 September 7, 2017, New York Stock Exchange LLC (‘‘NYSE’’ or the ‘‘Exchange’’) 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. The Exchange proposes to amend its Price List to (1) revise the credit for DMMs for MPL Orders that provide liquidity to the Exchange, and (2) make certain non-substantive, clarifying changes. The proposed changes would only apply to transactions in securities priced $1.00 or more. The Exchange proposes to implement these changes to its Price List effective September 7, 2017. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change sradovich on DSKBBY8HB2PROD with NOTICES The Exchange proposes to amend its Price List for equity transactions in stocks with a per share stock price more than $1.00 to (1) revise the credit for Designated Market Makers (‘‘DMMs’’) for Mid-Point Passive Liquidity (‘‘MPL’’) Orders that provide liquidity to the Exchange, and (2) make certain nonsubstantive, clarifying changes. The Exchange proposes to implement the proposed changes on September 7, 2017.4 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. 17 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 15 U.S.C. 78a. 3 17 CFR 240.19b–4. 4 The Exchange originally filed to amend the Price List Schedule on August 29, 2017 (SR–NYSE– 2017–45) and withdrew such filing on September 7, 2017. 1 15 VerDate Sep<11>2014 18:28 Sep 19, 2017 Jkt 241001 Proposed Rule Change The Exchange proposes the following changes to its Price List. Verbal Interest at the Close The current Price List provides that the Exchange charges $0.0010 for verbal interest on the close. The Price List also provides that non-electronic agency transactions of Floor brokers that execute at the close are not charged. The Exchange would delete the current entry providing that there is no charge for non-electronic agency transactions of Floor brokers that execute at the close. This entry was inadvertently not deleted when the Exchange adopted the current charge for verbal interest on the close.5 Deleting obsolete and duplicative material would add clarity to the Exchange’s Price List. At the Opening Orders The Exchange currently charges $0.0010 for at the opening or at the opening only orders that are ‘‘credited to both sides.’’ The Exchange proposes to replace ‘‘At the opening or at the opening only orders’’ with ‘‘Executions at the Open.’’ The Exchange would also 5 See Securities Exchange Act Release No. 77929 (May 26, 2016), 81 FR 35406 (June 2, 2016). PO 00000 Frm 00085 Fmt 4703 Sfmt 4703 delete ‘‘credited to.’’ The Exchange believes that the reference is redundant and unnecessary. Credits for MPL Orders An MPL Order is an undisplayed limit order that trades at the mid-point of the best protected bid (‘‘PBB’’) and best protected offer (‘‘PBO’’), as such terms are defined in Regulation NMS Rule 600(b)(57) (together, ‘‘PBBO’’). The Exchange proposes changes to the Price List to consolidate and streamline presentation of the credits for MPL orders that provide liquidity to the Exchange. Currently, credits for MPL orders that provide liquidity to the Exchange, excluding MPL Orders from DMMs and Supplemental Liquidity Providers (‘‘SLP’’), are set forth separately from the related credits for MPL orders that add liquidity to the Exchange applicable to SLPs. The credit amounts and qualifications for SLP and non-SLP MPL orders that add liquidity to the Exchange are the same. In order to consolidate these provisions, the Exchange proposes to delete (1) the phrase ‘‘and Supplemental Liquidity Providers (‘SLPs’)’’ from the provision governing credits for MPL orders that provide liquidity to the Exchange so as not to exclude SLP MPL orders, and (2) the SLP fees for MPL orders that add liquidity to the Exchange found under the heading ‘‘Credit Applicable to Supplemental Liquidity Providers (‘SLPs’)’’ of the Price List in their entirety. No substantive change would be effected since, as noted, the amount of the credits and qualifications for SLP and non-SLP MPL orders that add liquidity to the Exchange are currently the same and would remain unchanged. DMM MPL Orders The Exchange currently provides a credit of $0.0030 to DMMs for executions of MPL Orders in securities priced $1.00 or more that provide liquidity to the NYSE. The Exchange proposes to revise the credit to DMMs to $0.00275. * * * * * 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,6 in general, and furthers the objectives of Sections 6 15 E:\FR\FM\20SEN1.SGM U.S.C. 78f(b). 20SEN1 sradovich on DSKBBY8HB2PROD with NOTICES Federal Register / Vol. 82, No. 181 / Wednesday, September 20, 2017 / Notices 6(b)(4) and (5) of the Act,7 in particular, because it provides for the equitable allocation of reasonable dues, fees, and other charges among its members, issuers and other persons using its facilities and does not unfairly discriminate between customers, issuers, brokers or dealers and is designed to prevent fraudulent and manipulative acts and practices, 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 the proposed non-substantive changes to its Price List deleting obsolete entry relating to non-electronic agency transactions of Floor brokers at the close; clarifying that the charge for at the opening or at the opening only orders are ‘‘credited’’ to both sides; replacing ‘‘At the opening or at the opening only orders’’ with ‘‘Executions at the Open’’; and consolidating and streamlining the presentation of the credits for MPL orders that provide liquidity to the Exchange are designed to provide greater specificity and clarity to the Price List, 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. Eliminating obsolete and redundant material also reduces potential confusion and adds 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. Finally, the Exchange believes that the proposed change to the credit for DMMs for MPL Orders that provide liquidity to the Exchange to $0.00275 per share is reasonable because the credit is in line with the best credit for member organizations of $0.00275 when the member organization has Adding ADV 8 in MPL orders that is at least 0.140% of NYSE CADV.9 The proposed $0.00275 credit is also comparable to credits provided by other markets. For example, NASDAQ’s best credit to add non-displayed midpoint liquidity is 7 15 U.S.C. 78f(b)(4) & (5). 8 ‘‘Adding ADV’’ is when a member organization has ADV that adds liquidity to the Exchange during the billing month. Adding ADV excludes any liquidity added by a DMM. 9 NYSE CADV is defined in the Price List as the consolidated average daily volume of NYSE-listed securities. VerDate Sep<11>2014 18:28 Sep 19, 2017 Jkt 241001 $0.0025.10 Moreover, the requirement is equitable and not unfairly discriminatory because DMMs on the Exchange have heightened quoting and other obligations that other market participants do not have. As such, it is equitable and not unfairly discriminatory to offer DMMs a credit that is in line with the best credit for other member organizations that do not have such obligations. The requirement is also equitable and not unfairly discriminatory because it would apply equally to all DMM firms. 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 with the Act. 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. Instead, the proposed rule change is designed to eliminate obsolete and redundant material from the Exchange’s Price List and provide the public and investors with a Price List that is clear and transparent. Further, the Exchange believes that the proposed change to the credit for DMMs for MPL Orders would not place a burden on competition because the lower credit is comparable to credits provided by other exchanges. 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 10 See NASDAQ Price List, available at https:// www.nasdaqtrader.com/Trader.aspx?id= PriceListTrading2. 11 15 U.S.C. 78f(b)(8). PO 00000 Frm 00086 Fmt 4703 Sfmt 4703 44017 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– NYSE–2017–47 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. 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 E:\FR\FM\20SEN1.SGM 20SEN1 44018 Federal Register / Vol. 82, No. 181 / Wednesday, September 20, 2017 / Notices All submissions should refer to File Number SR–NYSE–2017–47. 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–NYSE– 2017–47 and should be submitted on or before October 11, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.15 Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017–19964 Filed 9–19–17; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–81615; File No. SR–BOX– 2017–30] sradovich on DSKBBY8HB2PROD with NOTICES Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee Schedule on the BOX Market LLC (‘‘BOX’’) Options Facility September 14, 2017. 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 15 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 VerDate Sep<11>2014 18:28 Sep 19, 2017 Jkt 241001 September 1, 2017, BOX Options Exchange LLC (the ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Exchange filed the proposed rule change pursuant to Section 19(b)(3)(A)(ii) of the Act,3 and Rule 19b–4(f)(2) thereunder,4 which renders the proposal effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of the Substance of the Proposed Rule Change The Exchange is filing with the Securities and Exchange Commission (‘‘Commission’’) a proposed rule change to amend the Fee Schedule on the BOX Market LLC (‘‘BOX’’) options facility. The text of the proposed rule change is available from the principal office of the Exchange, at the Commission’s Public Reference Room and also on the Exchange’s Internet Web site at https:// boxexchange.com. 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 the Fee Schedule for trading on BOX. Specifically, the Exchange proposes to (1) amend the BOX Volume Rebate (‘‘BVR’’) in Section I.B.2; (2) modify the fees and rebate for Qualified Contingent Cross 5 (‘‘QCC’’) Transactions in Section 3 15 U.S.C. 78s(b)(3)(A)(ii). CFR 240.19b–4(f)(2). 5 A QCC Order is an originating order (Agency Order) to buy or sell at least 1,000 standard option contracts, or 10,000 mini-option contracts, that is identified as being part of a qualified contingent trade, coupled with a contra side order to buy or sell an equal number of contracts. 4 17 PO 00000 Frm 00087 Fmt 4703 Sfmt 4703 I.D.; and (3) make a clarifying change to in [sic] a footnote regarding the definition of ‘‘Broker Dealer facilitating a Public Customer’’ in Section II (Manual Transactions). BVR First, the Exchange proposes to adjust a rebate within the BVR. Under the BVR, the Exchange offers a tiered per contract rebate for all Public Customer PIP Orders and COPIP Orders of 100 and under contracts that do not trade solely with their contra order. Percentage thresholds are calculated on a monthly basis by totaling the Participant’s PIP and COPIP volume submitted to BOX, relative to the total national Customer volume in multiplylisted options classes. The Exchange proposes to raise the rebate for COPIP Orders in Tier 4 from $0.06 to $0.08. The Exchange notes that is it not proposing any changes to the percentage thresholds within the BVR. The quantity submitted will continue to be calculated on a monthly basis by totaling the Participant’s PIP and COPIP volume submitted to BOX, relative to the total national Customer volume in multiplylisted options classes. The Exchange also proposes to amend the BVR to remove the flat $0.03 rebate for those Public Customer COPIP Orders of 100 and under contracts that trade solely with their contra order. Public Customer PIP Orders of 100 and under contracts that trade solely with their contra order will continue to receive a $0.03 rebate per contract, regardless of tier. QCC Transactions The Exchange then proposes to amend the QCC Transaction fees and rebate. Specifically, the Exchange proposes to decrease the fees for all nonPublic Customer (Professional Customers, Broker Dealers and Market Makers) QCC Orders from $0.20 to $0.17 per contract side.6 In addition, the Exchange proposes to decrease the QCC Rebate from $0.15 to $0.14 per contract. Manual Transaction Fees Finally, the Exchange also proposes to amend the footnote that defines a ‘‘Broker Dealer facilitating a Public Customer’’ in Section II (Manual Transactions) to clarify that the ‘‘Broker Dealer facilitating a Public Customer’’ account type and applicable fees will be applied, regardless of if the Broker Dealer clears in the customer range, or clears as a Broker Dealer. To do this, the Exchange proposes to amend the 6 The Exchange notes that no changes will be made to Public Customer QCC Order fees. E:\FR\FM\20SEN1.SGM 20SEN1

Agencies

[Federal Register Volume 82, Number 181 (Wednesday, September 20, 2017)]
[Notices]
[Pages 44016-44018]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-19964]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81612; File No. SR-NYSE-2017-47]


Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend Its Price List

September 14, 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 September 7, 2017, New York Stock Exchange LLC (``NYSE'' 
or the ``Exchange'') 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend its Price List for equity 
transactions in stocks with a per share stock price more than $1.00 to 
(1) revise the credit for Designated Market Makers (``DMMs'') for Mid-
Point Passive Liquidity (``MPL'') Orders that provide liquidity to the 
Exchange, and (2) make certain non-substantive, clarifying changes. The 
Exchange proposes to implement the proposed changes on September 7, 
2017.\4\ 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.
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    \4\ The Exchange originally filed to amend the Price List 
Schedule on August 29, 2017 (SR-NYSE-2017-45) and withdrew such 
filing on September 7, 2017.
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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

1. Purpose
    The Exchange proposes to amend its Price List to (1) revise the 
credit for DMMs for MPL Orders that provide liquidity to the Exchange, 
and (2) make certain non-substantive, clarifying changes.
    The proposed changes would only apply to transactions in securities 
priced $1.00 or more.
    The Exchange proposes to implement these changes to its Price List 
effective September 7, 2017.
Proposed Rule Change
    The Exchange proposes the following changes to its Price List.
Verbal Interest at the Close
    The current Price List provides that the Exchange charges $0.0010 
for verbal interest on the close. The Price List also provides that 
non-electronic agency transactions of Floor brokers that execute at the 
close are not charged.
    The Exchange would delete the current entry providing that there is 
no charge for non-electronic agency transactions of Floor brokers that 
execute at the close. This entry was inadvertently not deleted when the 
Exchange adopted the current charge for verbal interest on the 
close.\5\ Deleting obsolete and duplicative material would add clarity 
to the Exchange's Price List.
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    \5\ See Securities Exchange Act Release No. 77929 (May 26, 
2016), 81 FR 35406 (June 2, 2016).
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At the Opening Orders
    The Exchange currently charges $0.0010 for at the opening or at the 
opening only orders that are ``credited to both sides.'' The Exchange 
proposes to replace ``At the opening or at the opening only orders'' 
with ``Executions at the Open.'' The Exchange would also delete 
``credited to.'' The Exchange believes that the reference is redundant 
and unnecessary.
Credits for MPL Orders
    An MPL Order is an undisplayed limit order that trades at the mid-
point of the best protected bid (``PBB'') and best protected offer 
(``PBO''), as such terms are defined in Regulation NMS Rule 600(b)(57) 
(together, ``PBBO'').
    The Exchange proposes changes to the Price List to consolidate and 
streamline presentation of the credits for MPL orders that provide 
liquidity to the Exchange. Currently, credits for MPL orders that 
provide liquidity to the Exchange, excluding MPL Orders from DMMs and 
Supplemental Liquidity Providers (``SLP''), are set forth separately 
from the related credits for MPL orders that add liquidity to the 
Exchange applicable to SLPs. The credit amounts and qualifications for 
SLP and non-SLP MPL orders that add liquidity to the Exchange are the 
same.
    In order to consolidate these provisions, the Exchange proposes to 
delete (1) the phrase ``and Supplemental Liquidity Providers (`SLPs')'' 
from the provision governing credits for MPL orders that provide 
liquidity to the Exchange so as not to exclude SLP MPL orders, and (2) 
the SLP fees for MPL orders that add liquidity to the Exchange found 
under the heading ``Credit Applicable to Supplemental Liquidity 
Providers (`SLPs')'' of the Price List in their entirety. No 
substantive change would be effected since, as noted, the amount of the 
credits and qualifications for SLP and non-SLP MPL orders that add 
liquidity to the Exchange are currently the same and would remain 
unchanged.
DMM MPL Orders
    The Exchange currently provides a credit of $0.0030 to DMMs for 
executions of MPL Orders in securities priced $1.00 or more that 
provide liquidity to the NYSE. The Exchange proposes to revise the 
credit to DMMs to $0.00275.
* * * * *
    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,\6\ in general, and furthers the 
objectives of Sections

[[Page 44017]]

6(b)(4) and (5) of the Act,\7\ in particular, because it provides for 
the equitable allocation of reasonable dues, fees, and other charges 
among its members, issuers and other persons using its facilities and 
does not unfairly discriminate between customers, issuers, brokers or 
dealers and is designed to prevent fraudulent and manipulative acts and 
practices, 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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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(4) & (5).
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    The Exchange believes that the proposed non-substantive changes to 
its Price List deleting obsolete entry relating to non-electronic 
agency transactions of Floor brokers at the close; clarifying that the 
charge for at the opening or at the opening only orders are 
``credited'' to both sides; replacing ``At the opening or at the 
opening only orders'' with ``Executions at the Open''; and 
consolidating and streamlining the presentation of the credits for MPL 
orders that provide liquidity to the Exchange are designed to provide 
greater specificity and clarity to the Price List, 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. Eliminating obsolete and redundant material also 
reduces potential confusion and adds 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.
    Finally, the Exchange believes that the proposed change to the 
credit for DMMs for MPL Orders that provide liquidity to the Exchange 
to $0.00275 per share is reasonable because the credit is in line with 
the best credit for member organizations of $0.00275 when the member 
organization has Adding ADV \8\ in MPL orders that is at least 0.140% 
of NYSE CADV.\9\ The proposed $0.00275 credit is also comparable to 
credits provided by other markets. For example, NASDAQ's best credit to 
add non-displayed midpoint liquidity is $0.0025.\10\ Moreover, the 
requirement is equitable and not unfairly discriminatory because DMMs 
on the Exchange have heightened quoting and other obligations that 
other market participants do not have. As such, it is equitable and not 
unfairly discriminatory to offer DMMs a credit that is in line with the 
best credit for other member organizations that do not have such 
obligations. The requirement is also equitable and not unfairly 
discriminatory because it would apply equally to all DMM firms.
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    \8\ ``Adding ADV'' is when a member organization has ADV that 
adds liquidity to the Exchange during the billing month. Adding ADV 
excludes any liquidity added by a DMM.
    \9\ NYSE CADV is defined in the Price List as the consolidated 
average daily volume of NYSE-listed securities.
    \10\ See NASDAQ Price List, available at https://www.nasdaqtrader.com/Trader.aspx?id=PriceListTrading2.
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    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 with the Act.

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. Instead, the proposed rule change is designed to 
eliminate obsolete and redundant material from the Exchange's Price 
List and provide the public and investors with a Price List that is 
clear and transparent. Further, the Exchange believes that the proposed 
change to the credit for DMMs for MPL Orders would not place a burden 
on competition because the lower credit is comparable to credits 
provided by other exchanges.
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    \11\ 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) \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-NYSE-2017-47 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.


[[Page 44018]]


All submissions should refer to File Number SR-NYSE-2017-47. 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-NYSE-2017-47 and should be 
submitted on or before October 11, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-19964 Filed 9-19-17; 8:45 am]
BILLING CODE 8011-01-P
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