Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify the NYSE American Options Fee Schedule, 31431-31433 [2018-14362]
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Federal Register / Vol. 83, No. 129 / Thursday, July 5, 2018 / Notices
www.prc.gov, Docket Nos. MC2018–188,
CP2018–262.
POSTAL SERVICE
Product Change—Priority Mail and
First-Class Package Service
Negotiated Service Agreement
Elizabeth Reed,
Attorney, Corporate and Postal Business Law.
[FR Doc. 2018–14433 Filed 7–3–18; 8:45 am]
Postal ServiceTM.
ACTION: Notice.
AGENCY:
BILLING CODE 7710–12–P
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
DATES: Date of required notice: July 5,
2018.
SUMMARY:
FOR FURTHER INFORMATION CONTACT:
Elizabeth Reed, 202–268–3179.
The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on June 29, 2018,
it filed with the Postal Regulatory
Commission a USPS Request to Add
Priority Mail & First-Class Package
Service Contract 83 to Competitive
Product List. Documents are available at
www.prc.gov, Docket Nos. MC2018–189,
CP2018–263.
SUPPLEMENTARY INFORMATION:
Elizabeth Reed,
Attorney, Corporate and Postal Business Law.
[FR Doc. 2018–14434 Filed 7–3–18; 8:45 am]
BILLING CODE 7710–12–P
POSTAL SERVICE
Product Change—Priority Mail Express
and Priority Mail Negotiated Service
Agreement
Postal ServiceTM.
Notice.
AGENCY:
ACTION:
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
DATES: Date of required notice: July 5,
2018.
SUMMARY:
FOR FURTHER INFORMATION CONTACT:
Elizabeth Reed, 202–268–3179.
The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on June 29, 2018,
it filed with the Postal Regulatory
Commission a USPS Request to Add
Priority Mail Express & Priority Mail
Contract 69 to Competitive Product List.
Documents are available at
amozie on DSK3GDR082PROD with NOTICES1
SUPPLEMENTARY INFORMATION:
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SECURITIES AND EXCHANGE
COMMISSION
Submission for OMB Review;
Comment Request
Upon Written Request Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
Extension:
Regulation BTR, SEC File No. 270–521,
OMB Control No. 3235–0579
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) has submitted to the
Office of Management and Budget this
request for extension of the previously
approved collection of information
discussed below.
Regulation Blackout Trade Restriction
(‘‘Regulation BTR’’) (17 CFR 245.100–
245.104) clarifies the scope and
application of Section 306(a) of the
Sarbanes-Oxley Act of 2002 (‘‘Act’’) (15
U.S.C. 7244(a)). Section 306(a)(6) [15
U.S.C. 7244(a)(6)] of the Act requires an
issuer to provide timely notice to its
directors and executive officers and to
the Commission of the imposition of a
blackout period that would trigger the
statutory trading prohibition of Section
306(a)(1) [15 U.S.C. 7244(a)(1)]. Section
306(a) of the Act prohibits any director
or executive officer of an issuer of any
equity security, directly or indirectly,
from purchasing, selling or otherwise
acquiring or transferring any equity
security of that issuer during any
blackout period with respect to such
equity security, if the director or
executive officer acquired the equity
security in connection with his or her
service or employment. Approximately
1,230 issuers file Regulation BTR
notices approximately 5 times a year for
a total of 6,150 responses. We estimate
that it takes approximately 2 hours to
prepare the blackout notice for a total
annual burden of 2,460 hours. The
issuer prepares 75% of the 2,460 annual
burden hours for a total reporting
burden of (1,230 × 2 × 0.75) 1,845 hours.
In addition, we estimate that an issuer
distributes a notice to five directors and
executive officers at an estimated 5
minutes per notice (1,230 blackout
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period × 5 notices × 5 minutes) for a
total reporting burden of 512 hours. The
combined annual reporting burden is
(1,845 hours + 512 hours) 2,357 hours.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a currently valid
control number.
The public may view the background
documentation for this information
collection at the following website,
www.reginfo.gov. Comments should be
directed to: (i) Desk Officer for the
Securities and Exchange Commission,
Office of Information and Regulatory
Affairs, Office of Management and
Budget, Room 10102, New Executive
Office Building, Washington, DC 20503,
or by sending an email to: Shagufta_
Ahmed@omb.eop.gov; and (ii) Pamela
Dyson, Director/Chief Information
Officer, Securities and Exchange
Commission, c/o Candace Kenner, 100 F
Street NE, Washington, DC 20549 or
send an email to: PRA_Mailbox@
sec.gov. Comments must be submitted to
OMB within 30 days of this notice.
Dated: June 28, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–14360 Filed 7–3–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–83553; File No. SR–
NYSEAMER–2018–34]
Self-Regulatory Organizations; NYSE
American LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Modify the NYSE
American Options Fee Schedule
June 28, 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 June 27,
2018, 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.
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
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Federal Register / Vol. 83, No. 129 / Thursday, July 5, 2018 / Notices
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 June 27, 2018. 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
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1. Purpose
The purpose of this filing is to modify
the Fee Schedule, effective June 27,
2018, to introduce fees for the newly
listed options on the NYSE FANG+
Index (‘‘NYSE FANG+’’), which will
trade under the symbol FAANG. Section
1 of the Fee Schedule sets forth the rates
for options transactions, both manual
and electronic.4 The Exchange proposes
to introduce fees related to transactions
in NYSE FANG+ in new note 8 to
Section I, Options Transaction Fees and
Credits. As proposed, the Exchange
would charge $0.35 per contract, per
side for non-Customer NYSE FANG+
transactions, whether executed
manually or electronically. However,
the Exchange would not charge a fee for
any NYSE FANG+ options transactions
(i) on behalf of Customers or (ii) by
Market Makers with an appointment in
NYSE FANG+.5 Further, the Exchange
would not impose any Marketing
Charges on NYSE FANG+ option
4 See e.g., Fee Schedule, I.A. (Rates for Standard
Options transactions), available here, https://
www.nyse.com/publicdocs/nyse/markets/americanoptions/NYSE_American_Options_Fee_
Schedule.pdf.
5 The term Market Maker, as used herein,
includes NYSE American Options Market Makers,
Specialists, e-Specialists and Directed Order Market
Makers.
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transactions or any Rights Fees upon
allocation in options on NYSE FANG+.6
Market Makers that do not have an
appointment in NYSE FANG+ will be
subject to the same fee of $0.35 per
contract, per side for non-Customer
NYSE FANG+ transactions. However,
volume in NYSE FANG+ would be
included in the calculations to qualify
for any volume-based incentives
currently being offered on the Exchange
(e.g., such monthly volume would be
counted towards the Market Maker
Sliding Scale program, per Section I.C.,
and the American Customer
Engagement (‘‘ACE’’) Program, per
Section I.E. of the Fee Schedule, and the
Firm Monthly Fee Cap, per Section
I.J.).7
The Exchange believes the proposed
fees for NYSE FANG+ would further the
Exchange’s goal of introducing new
products to the marketplace by
encouraging trading in this index, in
particular by encouraging Market
Makers to make a market in these
products, which would in turn, benefit
market participants.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act, in general, and
furthers the objectives of Sections
6(b)(4) and (5) of the Act, in particular,
because it provides for the equitable
allocation of reasonable dues, fees, and
other charges among its members,
issuers and other persons using its
facilities and does not unfairly
discriminate between customers,
issuers, brokers or dealers.
The Exchange believes the proposal to
implement fees for options on NYSE
FANG+ is reasonable, equitable and not
unfairly discriminatory for the following
reasons. The Exchange believes the
proposed fees, which apply equally to
electronic and manual (open outcry)
transactions on behalf of nonCustomers, on the one hand, and
Customers, on the other hand, to be
reasonable and equitable because the
proposed differentiation among market
participants for NYSE FANG+ fees is
consistent with the manner in which the
6 See Fee Schedule, Sections I.A., note 3 (for
description of the collection, and distribution of,
Marketing Fees); and Section III.C. (for description
of the e-Specialist, DOMM and Specialist Monthly
Rights Fees). See also proposed Fee Schedule, note
8 to Section I, Options Transaction Fees and Credits
(providing, in part, that ‘‘Marketing Charges will
not be applied to FAANG transactions’’).
7 See proposed Fee Schedule, note 8 to Section I,
Options Transaction Fees and Credits (providing, in
part, that ‘‘[a]ny volume in FAANG will be
included in the calculations to qualify for any
volume-based incentives currently being offered on
the Exchange’’).
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Exchange distinguishes among market
participants for fee purposes in other
contexts.8 The Exchange believes that
not imposing fees for NYSE FANG+
transactions on behalf of Customers is
likewise reasonable, equitable and not
unfairly discriminatory because
Customer order flow enhances liquidity
on the Exchange for the benefit of all
market participants. Specifically,
Customer liquidity benefits all market
participants by providing more trading
opportunities, which attracts Market
Makers. An increase in the activity of
Market Makers in turn facilitates tighter
spreads, which may cause an additional
corresponding increase in order flow
from other market participants.
The Exchange believes that applying
the same fee on all non-Customer NYSE
FANG+ option transactions, other than
those by Market Makers with an
appointment in NYSE FANG+, is nondiscriminatory because it applies to all
similarly situated participants on an
equal basis that opt to trade the product.
Moreover, the decision to transact in
NYSE FANG+ (or, for Market Makers, to
seek an appointment) is voluntary. The
Exchange believes that allowing Market
Makers with an appointment in NYSE
FANG+ to transact in the product free of
charge (and without incurring
Marketing Fees) is not unfairly
discriminatory because Market Makers
have heightened obligations that are not
applicable to other non-Customer
market participants.9 It is also nondiscriminatory because all Market
Makers may apply for an appointment
in NYSE FANG+ options. Further,
encouraging Market Makers to seek an
appointment in, and thus provide
continuous quotes in, NYSE FANG+
would add liquidity to the market and
provide market participants—both
Customer and non-Customer alike—
increased opportunities to trade options
on NYSE FANG+. The Exchange
believes that exempting transactions in
NYSE FANG+ from the monthly Rights
Fees would likewise encourage trading
in NYSE FANG+ options, which
increase in the availability of such
options would benefit all market
participants.
Further, the proposal to include any
volume in NYSE FANG+ in the
calculations to qualify for any volumebased incentives offered on the
Exchange would further the Exchange’s
8 See id. (providing that non-Customers (i.e.,
NYSE American Options Market Makers, Firms and
Broker Dealers and Professional Customers) are
charged a total $0.25 per contract for manual
executions, while Customers are charged $0.00 per
contract for manual executions).
9 See, e.g., Rules 920NY, 925.1NY(b) and 927NY
(setting forth heightened quoting obligations).
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Federal Register / Vol. 83, No. 129 / Thursday, July 5, 2018 / Notices
goal of introducing new products to the
marketplace by encouraging trading in
these products. To the extent that the
proposed change incentivizes any
market participants to direct their order
flow to the Exchange, all market
participants would benefit from
increased liquidity and trading
opportunities on the Exchange. Finally,
the Exchange notes that offering market
participants incentives to trade in
certain newly offered products is not
new or novel.10
B. Self-Regulatory Organization’s
Statement on Burden on Competition
In accordance with Section 6(b)(8) of
the Act, 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
transaction fees for NYSE FANG+
would not place an unfair burden on
competition as it would apply to all
similarly situated non-Customer/nonMarket Maker participants. The
Exchange also believes the proposed
pricing for NYSE FANG+ is
procompetitive as it would further the
Exchange’s goal of introducing new
products to the marketplace and
encouraging Market Makers to make a
market in these products, which would
in turn, benefit market participants.
Market participants that do not wish to
trade in or seek an appointment in
NYSE FANG+ are not obliged to do so.
The Exchange does not believe that
the proposed change will impair the
ability of any market participants or
competing order execution venues to
maintain their competitive standing in
the financial markets. Further, the fees
would be applied to all similarly
situated participants (i.e., nonCustomers), and, as such, the proposed
change would not impose a disparate
burden on competition either among or
between classes of market participants.
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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.
10 See, e.g., Securities Exchange Act Release No.
77293 (March 4, 2016), 81 FR 12762 (March 4,
2016) (SR–NYSEMKT–2016–34) (addressing the
treatment of Binary Return Derivatives—or ByRDs—
and exempting such transactions from all Exchange
fees to encourage trading in the product).
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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) 11 of the Act and
subparagraph (f)(2) of Rule 19b–4 12
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) 13 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 No. SR–
NYSEAMER–2018–34 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 No.
SR–NYSEAMER–2018–34. 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
PO 00000
11 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
13 15 U.S.C. 78s(b)(2)(B).
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
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File No.
SR–NYSEAMER–2018–34, and should
be submitted on or before July 26, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–14362 Filed 7–3–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–347, OMB Control No.
3235–0393]
Submission for OMB Review;
Comment Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
Washington, DC 20549–2736
Extension:
Rule 15g–4
Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
Securities and Exchange Commission
(‘‘Commission’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for extension of the
existing collection of information
provided for in Rule 15g–4—Disclosure
of compensation to brokers or dealers
(17 CRF 240.15g–4) under the Securities
Exchange Act of 1934 (15 U.S.C. 78a et
seq.).
Rule 15g–4 requires brokers and
dealers effecting transactions in penny
stocks for or with customers to disclose
the amount of compensation received by
the broker-dealer in connection with the
transaction. The purpose of the rule is
12 17
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14 17
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CFR 200.30–3(a)(12).
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]]>Agencies
[Federal Register Volume 83, Number 129 (Thursday, July 5, 2018)]
[Notices]
[Pages 31431-31433]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-14362]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-83553; File No. SR-NYSEAMER-2018-34]
Self-Regulatory Organizations; NYSE American LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Modify
the NYSE American Options Fee Schedule
June 28, 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 June 27, 2018, 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.
---------------------------------------------------------------------------
[[Page 31432]]
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 June 27, 2018. 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 purpose of this filing is to modify the Fee Schedule, effective
June 27, 2018, to introduce fees for the newly listed options on the
NYSE FANG+ Index (``NYSE FANG+''), which will trade under the symbol
FAANG. Section 1 of the Fee Schedule sets forth the rates for options
transactions, both manual and electronic.\4\ The Exchange proposes to
introduce fees related to transactions in NYSE FANG+ in new note 8 to
Section I, Options Transaction Fees and Credits. As proposed, the
Exchange would charge $0.35 per contract, per side for non-Customer
NYSE FANG+ transactions, whether executed manually or electronically.
However, the Exchange would not charge a fee for any NYSE FANG+ options
transactions (i) on behalf of Customers or (ii) by Market Makers with
an appointment in NYSE FANG+.\5\ Further, the Exchange would not impose
any Marketing Charges on NYSE FANG+ option transactions or any Rights
Fees upon allocation in options on NYSE FANG+.\6\ Market Makers that do
not have an appointment in NYSE FANG+ will be subject to the same fee
of $0.35 per contract, per side for non-Customer NYSE FANG+
transactions. However, volume in NYSE FANG+ would be included in the
calculations to qualify for any volume-based incentives currently being
offered on the Exchange (e.g., such monthly volume would be counted
towards the Market Maker Sliding Scale program, per Section I.C., and
the American Customer Engagement (``ACE'') Program, per Section I.E. of
the Fee Schedule, and the Firm Monthly Fee Cap, per Section I.J.).\7\
---------------------------------------------------------------------------
\4\ See e.g., Fee Schedule, I.A. (Rates for Standard Options
transactions), available here, https://www.nyse.com/publicdocs/nyse/markets/american-options/NYSE_American_Options_Fee_Schedule.pdf.
\5\ The term Market Maker, as used herein, includes NYSE
American Options Market Makers, Specialists, e-Specialists and
Directed Order Market Makers.
\6\ See Fee Schedule, Sections I.A., note 3 (for description of
the collection, and distribution of, Marketing Fees); and Section
III.C. (for description of the e-Specialist, DOMM and Specialist
Monthly Rights Fees). See also proposed Fee Schedule, note 8 to
Section I, Options Transaction Fees and Credits (providing, in part,
that ``Marketing Charges will not be applied to FAANG
transactions'').
\7\ See proposed Fee Schedule, note 8 to Section I, Options
Transaction Fees and Credits (providing, in part, that ``[a]ny
volume in FAANG will be included in the calculations to qualify for
any volume-based incentives currently being offered on the
Exchange'').
---------------------------------------------------------------------------
The Exchange believes the proposed fees for NYSE FANG+ would
further the Exchange's goal of introducing new products to the
marketplace by encouraging trading in this index, in particular by
encouraging Market Makers to make a market in these products, which
would in turn, benefit market participants.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act, in general, and furthers the objectives
of Sections 6(b)(4) and (5) of the Act, in particular, because it
provides for the equitable allocation of reasonable dues, fees, and
other charges among its members, issuers and other persons using its
facilities and does not unfairly discriminate between customers,
issuers, brokers or dealers.
The Exchange believes the proposal to implement fees for options on
NYSE FANG+ is reasonable, equitable and not unfairly discriminatory for
the following reasons. The Exchange believes the proposed fees, which
apply equally to electronic and manual (open outcry) transactions on
behalf of non-Customers, on the one hand, and Customers, on the other
hand, to be reasonable and equitable because the proposed
differentiation among market participants for NYSE FANG+ fees is
consistent with the manner in which the Exchange distinguishes among
market participants for fee purposes in other contexts.\8\ The Exchange
believes that not imposing fees for NYSE FANG+ transactions on behalf
of Customers is likewise reasonable, equitable and not unfairly
discriminatory because Customer order flow enhances liquidity on the
Exchange for the benefit of all market participants. Specifically,
Customer liquidity benefits all market participants by providing more
trading opportunities, which attracts Market Makers. An increase in the
activity of Market Makers in turn facilitates tighter spreads, which
may cause an additional corresponding increase in order flow from other
market participants.
---------------------------------------------------------------------------
\8\ See id. (providing that non-Customers (i.e., NYSE American
Options Market Makers, Firms and Broker Dealers and Professional
Customers) are charged a total $0.25 per contract for manual
executions, while Customers are charged $0.00 per contract for
manual executions).
---------------------------------------------------------------------------
The Exchange believes that applying the same fee on all non-
Customer NYSE FANG+ option transactions, other than those by Market
Makers with an appointment in NYSE FANG+, is non-discriminatory because
it applies to all similarly situated participants on an equal basis
that opt to trade the product. Moreover, the decision to transact in
NYSE FANG+ (or, for Market Makers, to seek an appointment) is
voluntary. The Exchange believes that allowing Market Makers with an
appointment in NYSE FANG+ to transact in the product free of charge
(and without incurring Marketing Fees) is not unfairly discriminatory
because Market Makers have heightened obligations that are not
applicable to other non-Customer market participants.\9\ It is also
non-discriminatory because all Market Makers may apply for an
appointment in NYSE FANG+ options. Further, encouraging Market Makers
to seek an appointment in, and thus provide continuous quotes in, NYSE
FANG+ would add liquidity to the market and provide market
participants--both Customer and non-Customer alike--increased
opportunities to trade options on NYSE FANG+. The Exchange believes
that exempting transactions in NYSE FANG+ from the monthly Rights Fees
would likewise encourage trading in NYSE FANG+ options, which increase
in the availability of such options would benefit all market
participants.
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\9\ See, e.g., Rules 920NY, 925.1NY(b) and 927NY (setting forth
heightened quoting obligations).
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Further, the proposal to include any volume in NYSE FANG+ in the
calculations to qualify for any volume-based incentives offered on the
Exchange would further the Exchange's
[[Page 31433]]
goal of introducing new products to the marketplace by encouraging
trading in these products. To the extent that the proposed change
incentivizes any market participants to direct their order flow to the
Exchange, all market participants would benefit from increased
liquidity and trading opportunities on the Exchange. Finally, the
Exchange notes that offering market participants incentives to trade in
certain newly offered products is not new or novel.\10\
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\10\ See, e.g., Securities Exchange Act Release No. 77293 (March
4, 2016), 81 FR 12762 (March 4, 2016) (SR-NYSEMKT-2016-34)
(addressing the treatment of Binary Return Derivatives--or ByRDs--
and exempting such transactions from all Exchange fees to encourage
trading in the product).
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B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act, 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 transaction
fees for NYSE FANG+ would not place an unfair burden on competition as
it would apply to all similarly situated non-Customer/non-Market Maker
participants. The Exchange also believes the proposed pricing for NYSE
FANG+ is procompetitive as it would further the Exchange's goal of
introducing new products to the marketplace and encouraging Market
Makers to make a market in these products, which would in turn, benefit
market participants. Market participants that do not wish to trade in
or seek an appointment in NYSE FANG+ are not obliged to do so.
The Exchange does not believe that the proposed change will impair
the ability of any market participants or competing order execution
venues to maintain their competitive standing in the financial markets.
Further, the fees would be applied to all similarly situated
participants (i.e., non-Customers), and, as such, the proposed change
would not impose a disparate burden on competition either among or
between classes of market participants.
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) \11\ of the Act and subparagraph (f)(2) of Rule
19b-4 \12\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 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) \13\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\13\ 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 [email protected]. Please include
File No. SR-NYSEAMER-2018-34 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 No. SR-NYSEAMER-2018-34. 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 personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File No. SR-NYSEAMER-2018-34, and should be submitted
on or before July 26, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-14362 Filed 7-3-18; 8:45 am]
BILLING CODE 8011-01-P
