Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Change To Modify the NYSE American Options Fee Schedule, 47588-47590 [2017-21998]
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47588
Federal Register / Vol. 82, No. 196 / Thursday, October 12, 2017 / Notices
All submissions should refer to File
Number SR–FINRA–2017–031. 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
a.m. and 3 p.m. Copies of such filing
also will be available for inspection and
copying at the principal office of
FINRA. 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–FINRA–2017–031 and
should be submitted on or before
November 2, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Eduardo A. Aleman,
Assistant Secretary.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–81828; File No. SR–
NYSEAMER–2017–22]
Self-Regulatory Organizations; NYSE
American LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Change To Modify the NYSE American
Options Fee Schedule
October 5, 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 October
4, 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 modify the
NYSE American Options Fee Schedule
(‘‘Fee Schedule’’). The Exchange
proposes to implement the fee change
effective October 4, 2017.4 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 purpose of this filing is to modify
the Fee Schedule, effective October 4,
2017. Specifically, the Exchange
proposes to (i) modify the monthly rates
for certain American Trading Permits
(each an ‘‘ATP’’); and (ii) reduce the
Messages to Contracts Traded Ratio
Fees.
Monthly ATP Fees
NYSE American Market Makers (each,
an ‘‘MM’’) must have a certain number
of ATPs each month in order to submit
electronic quotations in option issues in
their appointment.5 The Exchange
currently employs a sliding scale for the
cost to each MM per ATP, with the
amount decreasing as the number of
ATPs utilized increases, as follows: 6
[FR Doc. 2017–21994 Filed 10–11–17; 8:45 am]
BILLING CODE 8011–01–P
Monthly fee
per ATP
ATP type
asabaliauskas on DSKBBXCHB2PROD with NOTICES
MM
MM
MM
MM
MM
MM
1st ATP ..................................................................
2nd ATP ................................................................
3rd ATP .................................................................
4th ATP .................................................................
5th ATP .................................................................
6th or more ATPs ..................................................
Thus, an MM that would like the
privilege of quoting in all issues traded
on the Exchange must have at least five
ATPs. And, if an MM firm sponsors
multiple individual MMs, the MM firm
CFR 200.30–3(a)(12).
U.S.C.78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
22:35 Oct 11, 2017
60 plus the Bottom 45%.
150 plus the Bottom 45%.
500 plus the Bottom 45%.
1,100 plus the Bottom 45%.
All issues traded on the Exchange.
All issues traded on the Exchange.
Jkt 244001
must pay for the requisite number of
ATPs for each individual MM to submit
quotes on the Exchange. For example,
assume an MM firm has three
individual MMs and that each MM
needs to be able to submit quotes in all
issues traded on the Exchange. In this
example, the MM firm would have to
pay for 15 ATPs (five for each
individual MM).
4 The Exchange originally filed to amend the Fee
Schedule on September 29, 2017 (SR–NYSEAmer–
2017–20) and withdrew such filing on October 4,
2017.
5 See Fee Schedule, Section III.A. (Monthly ATP
Fees), available here, https://www.nyse.com/
16 17
VerDate Sep<11>2014
$8,000
6,000
5,000
4,000
3,000
2,000
Number of issues permitted in a market makers quoting assignment
publicdocs/nyse/markets/american-options/NYSE_
American_Options_Fee_Schedule.pdf.
6 See id. (providing, in relevant part, that ‘‘[e]ach
calendar quarter, with a one-month lag, the
Exchange will publish on its Web site a list of the
Bottom 45% of issues traded’’).
PO 00000
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Federal Register / Vol. 82, No. 196 / Thursday, October 12, 2017 / Notices
The Exchanges proposes to modify its
monthly ATP rates such that it will
charge $2,000 for the 6th, 7th, 8th, and
9th ATP and would charge $500 per
month for the tenth or additional ATPs.
The Exchange believes that this
proposed reduction in ATP fees would
encourage MM firms to have more
individual MMs to quote on the
Exchange, which will in turn encourage
liquidity and depth of markets.
Messages to Contracts Traded Ratio Fees
The Exchange proposes to modify the
Messages to Contracts Traded Ratio Fees
(‘‘Messages Fee’’), which are assessed as
part of the Monthly Excessive
Bandwidth Utilization Fees.7 Currently,
the Exchange charges $0.01 per 1,000
messages (including orders or quotes) in
excess of 1.5 billion messages in a
calendar month if the ATP Holder does
not execute at least 1 contract for every
1,500–5,000 messages entered, as
determined by the Exchange.8 The
Exchange proposes to reduce this rate
from $0.01 to $0.005. The Exchange
believes this reduced rate would still
encourage market participants to be
rational and efficient in the use of the
Exchange’s system capacity.
change relates to the cost of ATPs for
MMs and are therefore are not unfairly
discriminatory to non-MMs because
only MMs are required to submit
quotations as part of their obligations to
operate on the Exchange (resulting in
the need for multiple ATPs). To the
extent that the proposed fee encourages
MM firms to have more individual MMs
quoting on the Exchange, all market
participant would benefit from
competitive quoting that would increase
opportunities to trade and enhance
price discovery.
The Exchange also believes that the
proposed reduction in the Messages
Fees is reasonable, equitable, and not
unfairly discriminatory because it
should still encourage market
participants to be rational and efficient
in the use of the Exchange’s system
capacity, which benefits all market
participants. The proposed reduced fee
is reasonable because it would apply to
all market participants that are subject
to the Messages Fee.
asabaliauskas on DSKBBXCHB2PROD with NOTICES
B. Self-Regulatory Organization’s
Statement on Burden on Competition
In accordance with Section 6(b)(8) of
the Act,12 the Exchange does not believe
that the proposed rule change would
2. Statutory Basis
impose any burden on competition that
is not necessary or appropriate in
The Exchange believes that the
proposed rule change is consistent with furtherance of the purposes of the Act.
The Exchange believes the proposed
Section 6(b) of the Act,9 in general, and
changes to the ATP fees are profurthers the objectives of Sections
6(b)(4) and (5) of the Act,10 in particular, competitive because the changes are
consistent with similar fees on other
because it provides for the equitable
options exchanges.13 The proposed
allocation of reasonable dues, fees, and
change does not impose an undue
other charges among its members,
burden on non-MMs as only MMs
issuers and other persons using its
require multiple ATPs to satisfy quoting
facilities and does not unfairly
obligations on the Exchange. To the
discriminate between customers,
extent that the proposed change results
issuers, brokers or dealers.
in more competitive quoting, the
The Exchange believes that the
proposed change is pro-competitive and
proposed change to ATP fees is
should result in increased opportunities
reasonable and not unfairly
to trade as well as enhanced price
discriminatory because the fees are
discovery to the benefit of all market
within the general range of similar fees
participants.
assessed for trading permits on other
Similarly, the changes to the Messages
exchanges.11 In addition, the proposed
Fees would not place an unfair burden
on competition as it would continue to
7 See Fee Schedule, Section II (Monthly Excessive
encourage efficient use of Exchange
Bandwidth Utilization Fees) (‘‘EBUF’’) (describing
both the Messages to Contracts Traded Ratio Fee
bandwidth and would apply to all
and the Order to Trade Ratio Fee, which comprises
market participants that are subject to
the EBUF, and noting that if an ATP Holder is liable
the Messages Fee.
for either or both fees in a given month, that firm
To the extent that these purposes are
would only be charged the greater of the two fees).
The Exchange is not modifying the Order to Trade
achieved, the Exchange believes that the
Ratio Fees.
8 Currently, the Exchange has set the ratio at 1
contract for every 5,000 messages.
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(4) and (5).
11 See Chicago Board of Options Exchange
(‘‘CBOE’’) fee schedule, Market-Maker Trading
Permit Sliding Scale, p. 7, available here, https://
www.cboe.com/publish/feeschedule/CBOEFee
Schedule.pdf (charging $5,000 per trading permit
for the first ten permits); NYSE Arca Options Fee
VerDate Sep<11>2014
22:35 Oct 11, 2017
Jkt 244001
Schedule, NYSE Arca GENERAL OPTIONS and
TRADING PERMIT (OTP) FEES, available here,
https://www.nyse.com/publicdocs/nyse/markets/
arca-options/NYSE_Arca_Options_Fee_
Schedule.pdf (imposing a sliding scale of fees,
starting at $6,000 per month for the first trading
permit down to $1,000 per month for the fifth and
additional permits).
12 15 U.S.C. 78f(b)(8).
13 See supra note 11.
PO 00000
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47589
proposed changes would enhance the
quality of the Exchange’s markets and
increase the volume of orders directed
to the Exchange. In turn, all the
Exchange’s market participants would
benefit from the improved market
liquidity. If the proposed changes make
the Exchange a more attractive
marketplace for market participants at
other exchanges, such market
participants are welcome to become
ATP Holders.
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) 14 of the Act and
subparagraph (f)(2) of Rule 19b–4 15
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) 16 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.
14 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
16 15 U.S.C. 78s(b)(2)(B).
15 17
E:\FR\FM\12OCN1.SGM
12OCN1
47590
Federal Register / Vol. 82, No. 196 / Thursday, October 12, 2017 / Notices
Comments may be submitted by any of
the following methods:
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
[Release No. 34–81827; File No. SR–CBOE–
2017–063]
• 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–2017–22 on the subject
line.
October 5, 2017.
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–NYSEAMER–2017–22. 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–
NYSEAMER–2017–22, and should be
submitted on or before November 2,
2017.
asabaliauskas on DSKBBXCHB2PROD with NOTICES
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Relating to the Fees
Schedule
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Brent J. Fields,
Secretary.
[FR Doc. 2017–21998 Filed 10–11–17; 8:45 am]
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
September 29, 2017, Chicago Board
Options Exchange, Incorporated (the
‘‘Exchange’’ or ‘‘CBOE’’) 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 Exchange. 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 seeks to amend the
Fees Schedule.
The text of the proposed rule change
is available on the Exchange’s Web site
(https://www.cboe.com/AboutCBOE/
CBOELegalRegulatoryHome.aspx), at
the Exchange’s Office of the Secretary,
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
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 its
Fees Schedule, effective October 2,
BILLING CODE 8011–01–P
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
22:35 Oct 11, 2017
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the
Securities Exchange Act of 1934 (the
‘‘Act’’) and the rules and regulations
thereunder applicable to the Exchange
and, in particular, the requirements of
Section 6(b) of the Act.3 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 4 requirements that the rules of
an exchange be 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 regulating, clearing, settling,
processing information with respect to,
and 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.
Additionally, the Exchange believes the
proposed rule change is consistent with
the Section 6(b)(5) 5 requirement that
the rules of an exchange not be designed
to permit unfair discrimination between
customers, issuers, brokers, or dealers.
In particular, the Exchange believes
applying the marketing fee to RUT
options is equitable, reasonable, and not
unfairly discriminatory as the marketing
fee to be applied to RUT options is
similar to the marketing fee currently
3 15
1 15
17 17
2017. Specifically, the Exchange
proposes to amend its marketing fee
program to assess the fee in Russell
2000 Index (‘‘RUT’’) options at a rate of
$0.30 per contract. The Exchange
currently assess its marketing fee for
penny classes at a rate of $0.25 and nonpenny classes at the rate of $0.70 per
contract. CBOE believes assessing the
marketing fee in RUT options will allow
CBOE Market-Makers (including DPMs,
PMMs, and LMMs) to compete better for
order flow in RUT options. Footnote 6
of the Fees Schedule currently exempts
Underlying Symbol List A symbols from
the marketing fee. Footnote 34 of the
Fees Schedule identifies RUT as an
Underlying Symbol List A symbol.
Thus, the Exchange is amending
footnote 6 of the Fees Schedule to
provide that the marketing fee will
apply to RUT. RUT will remain an
Underlying Symbol List A symbol in all
other respects.
The Exchange also proposes to make
a non-substantive amendment to the
term ‘binaries’ in footnote 6 of the Fees
Schedule.
Jkt 244001
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4 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
5 Id.
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]]>Agencies
[Federal Register Volume 82, Number 196 (Thursday, October 12, 2017)]
[Notices]
[Pages 47588-47590]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-21998]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-81828; File No. SR-NYSEAMER-2017-22]
Self-Regulatory Organizations; NYSE American LLC; Notice of
Filing and Immediate Effectiveness of Proposed Change To Modify the
NYSE American Options Fee Schedule
October 5, 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 October 4, 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 modify the NYSE American Options Fee
Schedule (``Fee Schedule''). The Exchange proposes to implement the fee
change effective October 4, 2017.\4\ 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.
---------------------------------------------------------------------------
\4\ The Exchange originally filed to amend the Fee Schedule on
September 29, 2017 (SR-NYSEAmer-2017-20) and withdrew such filing on
October 4, 2017.
---------------------------------------------------------------------------
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 modify the Fee Schedule, effective
October 4, 2017. Specifically, the Exchange proposes to (i) modify the
monthly rates for certain American Trading Permits (each an ``ATP'');
and (ii) reduce the Messages to Contracts Traded Ratio Fees.
Monthly ATP Fees
NYSE American Market Makers (each, an ``MM'') must have a certain
number of ATPs each month in order to submit electronic quotations in
option issues in their appointment.\5\ The Exchange currently employs a
sliding scale for the cost to each MM per ATP, with the amount
decreasing as the number of ATPs utilized increases, as follows: \6\
---------------------------------------------------------------------------
\5\ See Fee Schedule, Section III.A. (Monthly ATP Fees),
available here, https://www.nyse.com/publicdocs/nyse/markets/american-options/NYSE_American_Options_Fee_Schedule.pdf.
\6\ See id. (providing, in relevant part, that ``[e]ach calendar
quarter, with a one-month lag, the Exchange will publish on its Web
site a list of the Bottom 45% of issues traded'').
------------------------------------------------------------------------
Number of issues
Monthly fee permitted in a market
ATP type per ATP makers quoting
assignment
------------------------------------------------------------------------
MM 1st ATP..................... $8,000 60 plus the Bottom 45%.
MM 2nd ATP..................... 6,000 150 plus the Bottom
45%.
MM 3rd ATP..................... 5,000 500 plus the Bottom
45%.
MM 4th ATP..................... 4,000 1,100 plus the Bottom
45%.
MM 5th ATP..................... 3,000 All issues traded on
the Exchange.
MM 6th or more ATPs............ 2,000 All issues traded on
the Exchange.
------------------------------------------------------------------------
Thus, an MM that would like the privilege of quoting in all issues
traded on the Exchange must have at least five ATPs. And, if an MM firm
sponsors multiple individual MMs, the MM firm must pay for the
requisite number of ATPs for each individual MM to submit quotes on the
Exchange. For example, assume an MM firm has three individual MMs and
that each MM needs to be able to submit quotes in all issues traded on
the Exchange. In this example, the MM firm would have to pay for 15
ATPs (five for each individual MM).
[[Page 47589]]
The Exchanges proposes to modify its monthly ATP rates such that it
will charge $2,000 for the 6th, 7th, 8th, and 9th ATP and would charge
$500 per month for the tenth or additional ATPs. The Exchange believes
that this proposed reduction in ATP fees would encourage MM firms to
have more individual MMs to quote on the Exchange, which will in turn
encourage liquidity and depth of markets.
Messages to Contracts Traded Ratio Fees
The Exchange proposes to modify the Messages to Contracts Traded
Ratio Fees (``Messages Fee''), which are assessed as part of the
Monthly Excessive Bandwidth Utilization Fees.\7\ Currently, the
Exchange charges $0.01 per 1,000 messages (including orders or quotes)
in excess of 1.5 billion messages in a calendar month if the ATP Holder
does not execute at least 1 contract for every 1,500-5,000 messages
entered, as determined by the Exchange.\8\ The Exchange proposes to
reduce this rate from $0.01 to $0.005. The Exchange believes this
reduced rate would still encourage market participants to be rational
and efficient in the use of the Exchange's system capacity.
---------------------------------------------------------------------------
\7\ See Fee Schedule, Section II (Monthly Excessive Bandwidth
Utilization Fees) (``EBUF'') (describing both the Messages to
Contracts Traded Ratio Fee and the Order to Trade Ratio Fee, which
comprises the EBUF, and noting that if an ATP Holder is liable for
either or both fees in a given month, that firm would only be
charged the greater of the two fees). The Exchange is not modifying
the Order to Trade Ratio Fees.
\8\ Currently, the Exchange has set the ratio at 1 contract for
every 5,000 messages.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\9\ in general, and furthers the
objectives of Sections 6(b)(4) and (5) of the Act,\10\ 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.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
The Exchange believes that the proposed change to ATP fees is
reasonable and not unfairly discriminatory because the fees are within
the general range of similar fees assessed for trading permits on other
exchanges.\11\ In addition, the proposed change relates to the cost of
ATPs for MMs and are therefore are not unfairly discriminatory to non-
MMs because only MMs are required to submit quotations as part of their
obligations to operate on the Exchange (resulting in the need for
multiple ATPs). To the extent that the proposed fee encourages MM firms
to have more individual MMs quoting on the Exchange, all market
participant would benefit from competitive quoting that would increase
opportunities to trade and enhance price discovery.
---------------------------------------------------------------------------
\11\ See Chicago Board of Options Exchange (``CBOE'') fee
schedule, Market-Maker Trading Permit Sliding Scale, p. 7, available
here, https://www.cboe.com/publish/feeschedule/CBOEFeeSchedule.pdf
(charging $5,000 per trading permit for the first ten permits); NYSE
Arca Options Fee Schedule, NYSE Arca GENERAL OPTIONS and TRADING
PERMIT (OTP) FEES, available here, https://www.nyse.com/publicdocs/nyse/markets/arca-options/NYSE_Arca_Options_Fee_Schedule.pdf
(imposing a sliding scale of fees, starting at $6,000 per month for
the first trading permit down to $1,000 per month for the fifth and
additional permits).
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The Exchange also believes that the proposed reduction in the
Messages Fees is reasonable, equitable, and not unfairly discriminatory
because it should still encourage market participants to be rational
and efficient in the use of the Exchange's system capacity, which
benefits all market participants. The proposed reduced fee is
reasonable because it would apply to all market participants that are
subject to the Messages Fee.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\12\ the Exchange
does not believe that the proposed rule change would impose any burden
on competition that is not necessary or appropriate in furtherance of
the purposes of the Act. The Exchange believes the proposed changes to
the ATP fees are pro-competitive because the changes are consistent
with similar fees on other options exchanges.\13\ The proposed change
does not impose an undue burden on non-MMs as only MMs require multiple
ATPs to satisfy quoting obligations on the Exchange. To the extent that
the proposed change results in more competitive quoting, the proposed
change is pro-competitive and should result in increased opportunities
to trade as well as enhanced price discovery to the benefit of all
market participants.
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\12\ 15 U.S.C. 78f(b)(8).
\13\ See supra note 11.
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Similarly, the changes to the Messages Fees would not place an
unfair burden on competition as it would continue to encourage
efficient use of Exchange bandwidth and would apply to all market
participants that are subject to the Messages Fee.
To the extent that these purposes are achieved, the Exchange
believes that the proposed changes would enhance the quality of the
Exchange's markets and increase the volume of orders directed to the
Exchange. In turn, all the Exchange's market participants would benefit
from the improved market liquidity. If the proposed changes make the
Exchange a more attractive marketplace for market participants at other
exchanges, such market participants are welcome to become ATP Holders.
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) \14\ of the Act and subparagraph (f)(2) of Rule
19b-4 \15\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
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\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 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) \16\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\16\ 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.
[[Page 47590]]
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-2017-22 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-NYSEAMER-2017-22. 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-NYSEAMER-2017-22, and should
be submitted on or before November 2, 2017.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2017-21998 Filed 10-11-17; 8:45 am]
BILLING CODE 8011-01-P
