Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its Price List for Equity Transactions in Stocks With a Per Share Stock Price of $1.00 or More To Introduce a New Market at-the-Close and Limit at-the-Close Tier 3, 7282-7284 [2018-03314]
Download as PDF
<![CDATA[
7282
Federal Register / Vol. 83, No. 34 / Tuesday, February 20, 2018 / Notices
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–BOX–2018–07 and should
be submitted on or before March 9,
2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–03306 Filed 2–16–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–82706; File No. SR–NYSE–
2018–08]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend Its
Price List for Equity Transactions in
Stocks With a Per Share Stock Price of
$1.00 or More To Introduce a New
Market at-the-Close and Limit at-theClose Tier 3
February 13, 2018.
sradovich on DSK3GMQ082PROD with NOTICES
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 February
1, 2018, 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 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 for equity transactions in
stocks with a per share stock price of
$1.00 or more to introduce a new market
at-the-close (‘‘MOC’’) and limit at-theclose (‘‘LOC’’) Tier 3. The proposed rule
change is available on the Exchange’s
18 17
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
VerDate Sep<11>2014
17:55 Feb 16, 2018
Jkt 244001
website 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 introduce a new MOC/LOC
Tier 3.
The proposed change would only
apply to fees and credits in transactions
in securities priced $1.00 or more.
The Exchange proposes to implement
this change to its Price List effective
February 1, 2018.
Currently, for MOC/LOC Tier 1, the
Exchange currently charges $0.0004 per
share for MOC orders and $0.0007 per
share for LOC orders from any member
organization in the prior three billing
months executing (1) an ADV of MOC
activity on the NYSE of at least 0.45%
of NYSE CADV, (2) an ADV of total
close activity (MOC/LOC and
executions at the close) on the NYSE of
at least 0.7% of NYSE CADV, and (3)
whose MOC activity comprised at least
35% of the member organization’s total
close activity (MOC/LOC and other
executions at the close). For MOC/LOC
Tier 2, the Exchange currently charges
$0.0005 per share for MOC orders and
$0.0008 per share for LOC orders from
any member organization in the prior
three billing months executing (1) an
ADV of MOC activity on the NYSE of at
least 0.35% of NYSE CADV, (2) an ADV
of total close activity (MOC/LOC and
other executions at the close) on the
NYSE of at least 0.525% of NYSE
CADV, and (3) whose MOC activity
comprised at least 35% of the member
organization’s total close activity (MOC/
LOC and other executions at the close).
The Exchange proposes a third tier for
MOC and LOC orders that would charge
$0.0008 per share for MOC orders and
PO 00000
Frm 00147
Fmt 4703
Sfmt 4703
$0.0009 per share for LOC orders from
any member organization executing in
the current billing month (1) an ADV of
MOC activity on the NYSE of at least
0.25% of NYSE (Tape A) CADV, (2) an
ADV of the member organization’s total
close activity (MOC/LOC and other
executions at the close) on the NYSE of
at least 0.35% of NYSE (Tape A) CADV,
and (3) whose MOC activity comprised
at least 35% of the member
organization’s total close activity (MOC/
LOC and other executions at the close).
The rates and requirements for MOC/
LOC Tiers 1 and 2 would remain the
same.
*
*
*
*
*
The proposed change is 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,4 in general, and
furthers the objectives of Sections
6(b)(4) and 6(b)(5) of the Act,5 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 believes that the
proposed fee change for certain
executions at the close are reasonable.
The Exchange’s closing auction is a
recognized industry benchmark,6 and
member organizations receive a
substantial benefit from the Exchange in
obtaining high levels of executions at
the Exchange’s closing price on a daily
basis.
The Exchange believes that offering a
new fee tier for member organizations
that execute in a current month an ADV
of MOC activity on the NYSE of at least
0.25% of NYSE (Tape A) CADV, an
ADV of the member organization’s total
close activity (MOC/LOC and other
executions at the close) on the NYSE of
at least 0.35% of NYSE (Tape A) CADV,
and whose MOC activity comprised at
least 35% of the member organization’s
total close activity (MOC/LOC and other
executions at the close) is reasonable
and not unfairly discriminatory because
the proposed change would encourage
greater marketable and other liquidity at
4 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4) & (5).
6 For example, the pricing and valuation of
certain indices, funds, and derivative products
require primary market prints.
5 15
E:\FR\FM\20FEN1.SGM
20FEN1
Federal Register / Vol. 83, No. 34 / Tuesday, February 20, 2018 / Notices
sradovich on DSK3GMQ082PROD with NOTICES
the closing auction, and higher volumes
of MOC and LOC orders contribute to
the quality of the Exchange’s closing
auction and provide market participants
whose orders are swept into the close
with a greater opportunity for execution.
The Exchange believes that the
proposed tier is equitable and not
unfairly discriminatory because all
member organizations will be subject to
the same fee structure, which will
automatically adjust based on prevailing
market conditions.
The Exchange believes that charging a
lower rate for MOC executions than
LOC executions is reasonable and not
unfairly discriminatory because MOC
orders are always marketable and
therefore have a higher likelihood of
execution at the close. Charging a lower
fee will encourage higher volumes of
MOC orders at the close, which should
result in a higher level of orders
matched and greater liquidity for all
Exchange auction participants. The
Exchange notes that the current MOC/
LOC Tier 1 and MOC/LOC Tier 2 charge
a lower rate for MOC executions than
LOC executions.
The Exchange believes that the
requirement that at least 35% of the
member organization’s total close
activity be comprised of MOC activity in
order to qualify for MOC/LOC Tier 3
rates is reasonable and not unfairly
discriminatory because MOC orders
contribute meaningfully to the price and
size discovery, which is the hallmark of
the closing auction process. Charging a
lower fee to member organizations
utilizing MOC orders as a significant
component of their closing auction
participation will encourage higher
volumes of MOC orders at the close,
which should result in robust price
discovery, a higher level of orders
matched and greater liquidity for all
Exchange auction participants.
Finally, the Exchange believes that it
is subject to significant competitive
forces, as described below in the
Exchange’s statement regarding the
burden on competition.
For the foregoing reasons, the
Exchange believes that the proposal is
consistent with the Act.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
In accordance with Section 6(b)(8) of
the Act,7 the Exchange believes that the
proposed rule change would not impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. Instead, the
Exchange believes that the proposed
change would encourage the submission
of additional liquidity to a public
exchange, thereby promoting price
discovery and transparency and
enhancing order execution
opportunities for member organizations.
The Exchange believes that this could
promote competition between the
Exchange and other execution venues,
including those that currently offer
similar order types and comparable
transaction pricing, by encouraging
additional orders to be sent to the
Exchange for execution.
Finally, the Exchange notes that it
operates in a highly competitive market
in which market participants can
readily favor competing venues if they
deem fee levels at a particular venue to
be excessive or rebate opportunities
available at other venues to be more
favorable. In such an environment, the
Exchange must continually adjust its
fees and rebates to remain competitive
with other exchanges and with
alternative trading systems that have
been exempted from compliance with
the statutory standards applicable to
exchanges. Because competitors are free
to modify their own fees and credits in
response, and because market
participants may readily adjust their
order routing practices, the Exchange
believes that the degree to which fee
changes in this market may impose any
burden on competition is extremely
limited. As a result of all of these
considerations, the Exchange does not
believe that the proposed change 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) 8 of the Act and
subparagraph (f)(2) of Rule 19b–4 9
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
8 15
7 15
U.S.C. 78f(b)(8).
VerDate Sep<11>2014
17:55 Feb 16, 2018
9 17
Jkt 244001
PO 00000
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
Frm 00148
Fmt 4703
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)10 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–2018–08 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–NYSE–2018–08. 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 website (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 website 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.
Persons submitting comments are
cautioned that we do not redact or edit
10 15
Sfmt 4703
7283
E:\FR\FM\20FEN1.SGM
U.S.C. 78s(b)(2)(B).
20FEN1
7284
Federal Register / Vol. 83, No. 34 / Tuesday, February 20, 2018 / Notices
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–NYSE–2018–08 and should
be submitted on or before March 13,
2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Eduardo A. Aleman,
Assistant Secretary.
(Catalog of Federal Domestic Assistance
Number 59008)
James E. Rivera,
Associate Administrator for Disaster
Assistance.
[FR Doc. 2018–03338 Filed 2–16–18; 8:45 am]
BILLING CODE 8025–01–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
Sixth Drone Advisory Committee
(DAC) Meeting
[FR Doc. 2018–03314 Filed 2–16–18; 8:45 am]
BILLING CODE 8011–01–P
Federal Aviation
Administration (FAA), US Department
of Transportation.
ACTION: Sixth DAC Meeting.
AGENCY:
SMALL BUSINESS ADMINISTRATION
The meeting will be held on
March 9, 2018, 9:00 a.m.–3:30 p.m.
Eastern.
FAA Approval of Noise Compatibility
Program for Hawthorne Municipal
Airport, Hawthorne, California
The meeting will be held at
the MITRE–1 Building, 7525 Colshire
Drive, McLean, VA 22102–7539.
FOR FURTHER INFORMATION CONTACT: Al
Secen at asecen@rtca.org or 202–330–
0647, or The RTCA Secretariat, 1150
18th Street NW, Suite 910, Washington,
DC 20036, or by telephone at 202–833–
9339, fax at 202–833–9434, or website at
https://www.rtca.org.
SUPPLEMENTARY INFORMATION: Pursuant
to section 10(a)(2) of the Federal
Advisory Committee Act (Pub. L. 92–
463, 5 U.S.C., App.), notice is hereby
given of the Sixth DAC Meeting. The
DAC is a component of RTCA, which is
a Federal Advisory Committee. The
agenda will likely include, but may not
be limited to, the following:
AGENCY:
ADDRESSES:
U.S. Small Business
Administration.
ACTION: Amendment 1.
AGENCY:
This is an amendment of the
Presidential declaration of a major
disaster for public assistance only for
the state of New Hampshire (FEMA–
4355–DR), dated 01/02/2018.
Incident: Severe Storm and Flooding.
Incident Period: 10/29/2017 through
11/01/2017.
DATES: Issued on 02/08/2018.
Physical Loan Application Deadline
Date: 03/05/2018.
Economic Injury (EIDL) Loan
Application Deadline Date: 10/02/2018.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street SW, Suite 6050,
Washington, DC 20416, (202) 205–6734.
SUPPLEMENTARY INFORMATION: The notice
of the President’s major disaster
declaration for Private Non-Profit
organizations in the State of New
Hampshire, dated 01/02/2018, is hereby
amended to include the following areas
as adversely affected by the disaster.
Primary Counties: Merrimack
All other information in the original
declaration remains unchanged.
sradovich on DSK3GMQ082PROD with NOTICES
VerDate Sep<11>2014
17:55 Feb 16, 2018
Jkt 244001
BILLING CODE 4910–13–P
DATES:
Presidential Declaration Amendment of
a Major Disaster for Public Assistance
Only for the State of New Hampshire
CFR 200.30–3(a)(12).
[FR Doc. 2018–03373 Filed 2–16–18; 8:45 am]
DEPARTMENT OF TRANSPORTATION
SUMMARY:
11 17
Issued in Washington, DC, on February 14,
2018.
Christopher W. Harm,
Unmanned Aircraft Systems (UAS)
Stakeholder and Committee Liaison, AUS–
10, UAS Integration Office, FAA.
The FAA is issuing this notice
to advise the public of the Sixth DAC
Meeting.
[Disaster Declaration #15429 and #15430;
New Hampshire Disaster Number NH–
00040]
SUMMARY:
Attendance is open to the interested
public. With the approval of the
chairman, members of the public may
present oral statements at the meeting.
Persons wishing to present statements
or obtain information should contact the
person listed in the FOR FURTHER
INFORMATION, CONTACT section. Members
of the public may present a written
statement to the committee at any time.
Friday, March 9, 2018
• Call to Order; Official Statement of
the Designated Federal Officer
• Welcome and Introductions; Review
of the Fifth DAC Meeting
• Approval of Minutes from the Fifth
DAC Meeting
• Chairman’s Report
• FAA Update
• DAC Subcommittee (SC) Co-Chairs’
Report
• DACSC Task Group 3’s (TG3) UAS
Funding Report
• Discussion of TG3’s Report
• Discussion of FAA’s Response to DAC
Recommendations
• Discussion of DAC Engagement in the
Future
• New Business/Agenda Topics
• Closing Remarks
• Adjourn
PO 00000
Frm 00149
Fmt 4703
Sfmt 4703
Federal Aviation Administration
Federal Aviation
Administration, DOT.
ACTION: Notice.
The Federal Aviation
Administration (FAA) announces its
findings on the noise compatibility
program submitted by the City of
Hawthorne, California. On April 11,
2014, the FAA determined that the
noise exposure maps submitted by the
City of Hawthorne were in compliance
with applicable requirements. On
December 18, 2017, the FAA approved
the Hawthorne Municipal Airport Noise
Compatibility Program. All 11 of the
recommendations of the program were
approved. No program elements relating
to new or revised flight procedures for
noise abatement were proposed by the
airport operator.
DATES: The applicability date of the
FAA’s approval of the Hawthorne
Municipal Airport noise compatibility
program is December 18, 2017.
FOR FURTHER INFORMATION CONTACT:
Victor Globa, Environmental Protection
Specialist, Federal Aviation
Administration, Los Angeles Airports
District Office, 15000 Aviation
Boulevard, Lawndale, California 90261.
Telephone: 310–725–3637. Documents
reflecting this FAA action may be
reviewed at this same location.
SUPPLEMENTARY INFORMATION: This
notice announces that the FAA has
given its overall approval to the noise
compatibility program for Hawthorne
Municipal Airport, applicable December
18, 2017.
SUMMARY:
E:\FR\FM\20FEN1.SGM
20FEN1
]]>Agencies
[Federal Register Volume 83, Number 34 (Tuesday, February 20, 2018)]
[Notices]
[Pages 7282-7284]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-03314]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-82706; File No. SR-NYSE-2018-08]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend Its Price List for Equity Transactions in Stocks With a Per Share
Stock Price of $1.00 or More To Introduce a New Market at-the-Close and
Limit at-the-Close Tier 3
February 13, 2018.
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 February 1, 2018, 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.
---------------------------------------------------------------------------
\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 for equity
transactions in stocks with a per share stock price of $1.00 or more to
introduce a new market at-the-close (``MOC'') and limit at-the-close
(``LOC'') Tier 3. The proposed rule change is available on the
Exchange's website 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 introduce a new
MOC/LOC Tier 3.
The proposed change would only apply to fees and credits in
transactions in securities priced $1.00 or more.
The Exchange proposes to implement this change to its Price List
effective February 1, 2018.
Currently, for MOC/LOC Tier 1, the Exchange currently charges
$0.0004 per share for MOC orders and $0.0007 per share for LOC orders
from any member organization in the prior three billing months
executing (1) an ADV of MOC activity on the NYSE of at least 0.45% of
NYSE CADV, (2) an ADV of total close activity (MOC/LOC and executions
at the close) on the NYSE of at least 0.7% of NYSE CADV, and (3) whose
MOC activity comprised at least 35% of the member organization's total
close activity (MOC/LOC and other executions at the close). For MOC/LOC
Tier 2, the Exchange currently charges $0.0005 per share for MOC orders
and $0.0008 per share for LOC orders from any member organization in
the prior three billing months executing (1) an ADV of MOC activity on
the NYSE of at least 0.35% of NYSE CADV, (2) an ADV of total close
activity (MOC/LOC and other executions at the close) on the NYSE of at
least 0.525% of NYSE CADV, and (3) whose MOC activity comprised at
least 35% of the member organization's total close activity (MOC/LOC
and other executions at the close).
The Exchange proposes a third tier for MOC and LOC orders that
would charge $0.0008 per share for MOC orders and $0.0009 per share for
LOC orders from any member organization executing in the current
billing month (1) an ADV of MOC activity on the NYSE of at least 0.25%
of NYSE (Tape A) CADV, (2) an ADV of the member organization's total
close activity (MOC/LOC and other executions at the close) on the NYSE
of at least 0.35% of NYSE (Tape A) CADV, and (3) whose MOC activity
comprised at least 35% of the member organization's total close
activity (MOC/LOC and other executions at the close). The rates and
requirements for MOC/LOC Tiers 1 and 2 would remain the same.
* * * * *
The proposed change is 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,\4\ in general, and furthers the
objectives of Sections 6(b)(4) and 6(b)(5) of the Act,\5\ 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.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(4) & (5).
---------------------------------------------------------------------------
The Exchange believes that the proposed fee change for certain
executions at the close are reasonable. The Exchange's closing auction
is a recognized industry benchmark,\6\ and member organizations receive
a substantial benefit from the Exchange in obtaining high levels of
executions at the Exchange's closing price on a daily basis.
---------------------------------------------------------------------------
\6\ For example, the pricing and valuation of certain indices,
funds, and derivative products require primary market prints.
---------------------------------------------------------------------------
The Exchange believes that offering a new fee tier for member
organizations that execute in a current month an ADV of MOC activity on
the NYSE of at least 0.25% of NYSE (Tape A) CADV, an ADV of the member
organization's total close activity (MOC/LOC and other executions at
the close) on the NYSE of at least 0.35% of NYSE (Tape A) CADV, and
whose MOC activity comprised at least 35% of the member organization's
total close activity (MOC/LOC and other executions at the close) is
reasonable and not unfairly discriminatory because the proposed change
would encourage greater marketable and other liquidity at
[[Page 7283]]
the closing auction, and higher volumes of MOC and LOC orders
contribute to the quality of the Exchange's closing auction and provide
market participants whose orders are swept into the close with a
greater opportunity for execution. The Exchange believes that the
proposed tier is equitable and not unfairly discriminatory because all
member organizations will be subject to the same fee structure, which
will automatically adjust based on prevailing market conditions.
The Exchange believes that charging a lower rate for MOC executions
than LOC executions is reasonable and not unfairly discriminatory
because MOC orders are always marketable and therefore have a higher
likelihood of execution at the close. Charging a lower fee will
encourage higher volumes of MOC orders at the close, which should
result in a higher level of orders matched and greater liquidity for
all Exchange auction participants. The Exchange notes that the current
MOC/LOC Tier 1 and MOC/LOC Tier 2 charge a lower rate for MOC
executions than LOC executions.
The Exchange believes that the requirement that at least 35% of the
member organization's total close activity be comprised of MOC activity
in order to qualify for MOC/LOC Tier 3 rates is reasonable and not
unfairly discriminatory because MOC orders contribute meaningfully to
the price and size discovery, which is the hallmark of the closing
auction process. Charging a lower fee to member organizations utilizing
MOC orders as a significant component of their closing auction
participation will encourage higher volumes of MOC orders at the close,
which should result in robust price discovery, a higher level of orders
matched and greater liquidity for all Exchange auction participants.
Finally, the Exchange believes that it is subject to significant
competitive forces, as described below in the Exchange's statement
regarding the burden on competition.
For the foregoing reasons, the Exchange believes that the proposal
is consistent with the Act.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\7\ the Exchange
believes that the proposed rule change would not impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act. Instead, the Exchange believes that the proposed
change would encourage the submission of additional liquidity to a
public exchange, thereby promoting price discovery and transparency and
enhancing order execution opportunities for member organizations. The
Exchange believes that this could promote competition between the
Exchange and other execution venues, including those that currently
offer similar order types and comparable transaction pricing, by
encouraging additional orders to be sent to the Exchange for execution.
---------------------------------------------------------------------------
\7\ 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 change 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) \8\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \9\ thereunder, because it establishes a due, fee, or other charge
imposed by the Exchange.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B)\10\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-NYSE-2018-08 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-NYSE-2018-08. 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 website (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 website 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. Persons submitting comments are
cautioned that we do not redact or edit
[[Page 7284]]
personal identifying information from comment submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-NYSE-2018-08 and should be
submitted on or before March 13, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-03314 Filed 2-16-18; 8:45 am]
BILLING CODE 8011-01-P
