Self-Regulatory Organizations; NYSE National, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its Schedule of Fees and Rebates, 42196-42198 [2018-17830]
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42196
Federal Register / Vol. 83, No. 161 / Monday, August 20, 2018 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–83843; File No. SR–
NYSENAT–2018–18]
Self-Regulatory Organizations; NYSE
National, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Its Schedule of
Fees and Rebates
August 14, 2018.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on August
1, 2018, NYSE National, Inc.
(‘‘Exchange’’ or ‘‘NYSE National’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
Schedule of Fees and Rebates to specify
that an ETP Holder may request that the
Exchange aggregate its eligible activity
with activity of its ETP Holder affiliates
for purposes of charges or credits based
on volume. 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.
daltland on DSKBBV9HB2PROD with NOTICES
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
1 15
U.S.C.78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
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1. Purpose
The Exchange proposes to amend its
Schedule of Fees and Rebates to specify
that an ETP Holder may request that the
Exchange aggregate its eligible activity
with activity of its ETP Holder affiliates
for purposes of charges or credits based
on volume. As noted below, the
proposed provision is based on similar
provisions in the price lists of the
Exchange’s affiliates New York Stock
Exchange LLC (‘‘NYSE’’), NYSE Arca,
Inc. (‘‘NYSE Arca’’), and NYSE
American Equities (‘‘NYSE American’’)
(together, the ‘‘Exchange Affiliates’’).4
The Exchange proposes to amend its
Schedule of Fees and Rebates to specify
that an ETP Holder may request that the
Exchange aggregate its eligible activity
with eligible activity of its ETP Holder
affiliates for purposes of charges or
credits based on volume. The proposed
rule change is based on the rules of the
Exchange Affiliates, which contain
substantially the same language.5 The
Exchange notes that this type of
provision is also common among many
other exchanges.6
As proposed, for purposes of applying
any provision of the Exchange’s
Schedule of Fees and Rebates where the
charge assessed, or credit provided, by
the Exchange depends on the volume of
an ETP Holder’s activity (i.e., where a
volume threshold or volume percentage
is required to obtain the pricing), an
ETP Holder may request that the
Exchange aggregate its eligible activity
with eligible activity of its ETP Holder
affiliates. The Exchange further
proposes that an ETP Holder requesting
aggregation of eligible affiliate activity
would be required to (1) certify to the
Exchange which affiliate(s) it seeks to
aggregate prior to receiving approval for
aggregation, and (2) inform the
4 See New York Stock Exchange Price List 2018,
available at https://www.nyse.com/publicdocs/nyse/
markets/nyse/NYSE_Price_List.pdf; NYSE Arca
Equities Fees and Charges, available at https://
www.nyse.com/publicdocs/nyse/markets/nyse-arca/
NYSE_Arca_Marketplace_Fees.pdf; and the NYSE
American Equities Price List, available at https://
www.nyse.com/publicdocs/nyse/markets/nyseamerican/NYSE_America_Equities_Price_List.pdf.
5 See note 4, supra. The Exchange proposes to
omit a reference to Designated Market Makers or
‘‘DMMs’’ found in price lists of the Exchange
Affiliates because the Exchange does not currently
have DMMs.
6 See, e.g., NASDAQ Stock Market Rule 7027,
NASDAQ Options Market Rules at Chapter XV, and
the NASDAQ PHLX LLC Pricing Schedule,
available at https://nasdaqphlx.cchwallstreet.com/
NASDAQPHLXTools/PlatformViewer.asp?
selectednode=chp_1_5_2&manual=%2Fnasdaq
omxphlx%2Fphlx%2Fphlx-rulesbrd%2F.
PO 00000
Frm 00097
Fmt 4703
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Exchange immediately of any event that
causes an entity to cease being an
affiliate(s). The Exchange would review
available information regarding the
entities and reserves the right to request
additional information to verify the
affiliate status of an entity. As further
proposed, the Exchange would approve
a request, unless it determines that the
certificate is not accurate.
The Exchange also proposes that if
two or more ETP Holders become
affiliated on or prior to the sixteenth day
of a month, and submit the required
request for aggregation on or prior to the
twenty-second day of the month, an
approval of the request would be
deemed to be effective as of the first day
of that month. If two or more ETP
Holders become affiliated after the
sixteenth day of a month, or submit a
request for aggregation after the twenty
second day of the month, an approval of
the request would be deemed to be
effective as of the first day of the next
calendar month. The Exchange believes
that this requirement, which is also
similar to requirements of the Exchange
Affiliates, would be a fair and objective
way to apply the aggregation rule to fees
and streamline the billing process. The
Exchange further proposes to provide
that for purposes of applying any
provision of the Schedule of Fees and
Rebates where the charge assessed, or
credit provided, by the Exchange
depends upon the volume of an ETP
Holder’s activity, references to an entity
would be deemed to include the entity
and its affiliates that have been
approved for aggregation. The Exchange
proposes to provide that ETP Holders
may not aggregate volume where the
Schedule of Fees and Rebates specifies
that aggregation is not permitted.7
Finally, the Exchange proposes that
for purposes of the Schedule of Fees and
Rebates, the term ‘‘affiliate’’ would
mean any ETP Holder under 75%
common ownership or control of that
ETP Holder. Once again, this is
consistent with the rules of the
Exchange Affiliates and other
exchanges.8
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 6(b)(5) of the Act,10 in
particular, because it provides for the
equitable allocation of reasonable dues,
7 See
note 4, supra.
note 4, supra; see also, e.g., NASDAQ Rule
7027(c).
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(4) & (5).
8 See
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Federal Register / Vol. 83, No. 161 / Monday, August 20, 2018 / Notices
daltland on DSKBBV9HB2PROD with NOTICES
fees, and other charges among its
members, issuers and other persons
using its facilities and does not unfairly
discriminate between customers,
issuers, brokers or dealers, and because
it is designed to promote just and
equitable principles of trade, to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest.
The Exchange believes that the
proposed rule change establishes a
reasonable and clear process for the
Exchange to treat affiliated ETP Holders
for purposes of assessing charges or
credits that are based on volume. The
provision is equitable because all ETP
Holders seeking to aggregate their
activity are subject to the same
parameters, in accordance with a
standard that recognizes an affiliation as
of the month’s beginning or close in
time to when the affiliation occurs,
provided the ETP Holder submits a
timely request. Moreover, the proposed
billing aggregation language is
substantially similar to aggregation
language adopted by the NYSE Affiliates
and other exchanges.11
The Exchange notes that the proposal
would serve to reduce disparity of
treatment between ETP Holders with
regard to the pricing of different services
and reduce any potential for confusion
on how activity can be aggregated. The
Exchange believes that the proposed
rule change avoids disparate treatment
of ETP Holders that have divided their
various business activities between
separate corporate entities as compared
to ETP Holders that operate those
business activities within a single
corporate entity. The Exchange further
notes that the proposed rule change is
reasonable and is designed to remove
impediments to and perfect the
mechanism of a free and open market by
harmonizing the manner by which the
Exchanges permits ETP Holders to
aggregate volume with other exchanges.
As noted, the Exchange Affiliates and
other markets all have the same
standard that the Exchange is proposing
to adopt.
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,12 the Exchange believes that the
proposed rule change would not impose
any burden on competition that is not
11 See
12 15
notes 5–6, supra.
U.S.C. 78f(b)(8).
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19:04 Aug 17, 2018
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necessary or appropriate in furtherance
of the purposes of the Act. The
proposed rule change, which would
apply equally to all ETP Holders, would
incent submission of order flow to a
public exchange by permitting the
Exchange to apply price discounts to
ETP Holders that have requested
aggregation with an affiliated ETP
Holder and is substantially similar to
rules adopted by the Exchange Affiliates
as well as other exchanges. Because the
market for order execution and routing
is extremely competitive, ETP Holders
may readily opt to disfavor the
Exchange if they believe that
alternatives offer them better value. The
Exchange does not believe the proposed
changes will impair the ability of ETP
Holders or competing order execution
venues to maintain their competitive
standing in the financial markets.
Moreover, because the Exchange does
not propose to alter or modify specific
fees or credits applicable to ETP
Holders, the proposal does not impose
any burden on competition.
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 Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 13 and Rule
19b–4(f)(6) thereunder.14 Because the
proposed rule change does not: (i)
Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act and Rule 19b–4(f)(6)(iii)
thereunder. 15
A proposed rule change filed under
Rule 19b–4(f)(6) 16 normally does not
13 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
15 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
the proposed rule change at least five business days
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. The Exchange has satisfied this
requirement.
16 17 CFR 240.19b–4(f)(6).
14 17
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42197
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b4(f)(6)(iii),17 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest. The
Exchange has requested that the
Commission waive the 30-day operative
delay so that the proposal may become
operative immediately upon filing.
According to the Exchange, waiving the
30-day operative delay would be
consistent with the protection of
investors and the public interest
because it would enable the Exchange to
harmonize its rules with respect to
aggregation of affiliate activity with the
rules of its affiliates without delay and,
as a result, reduce potential confusion
for investors. The Exchange explains
that as it is harmonizing its Schedule of
Fees and Rebates with the requirements
in the price lists of its affiliates as well
as other exchanges, the proposed change
does not present any new or novel
issues. The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest.
Accordingly, the Commission waives
the 30-day operative delay and
designates the proposed rule change
operative upon filing.18
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) 19 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
17 17
CFR 240.19b–4(f)(6)(iii).
purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
19 15 U.S.C. 78s(b)(2)(B).
18 For
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42198
Federal Register / Vol. 83, No. 161 / Monday, August 20, 2018 / Notices
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NYSENAT–2018–18 on the subject line.
DEPARTMENT OF STATE
Paper Comments
Certification Related to the Central
Government of Haiti Under the
Department of State, Foreign
Operations, and Related Programs
Appropriations Act, 2018
• 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–NYSENAT–2018–18. 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;
the Commission does not edit personal
identifying information from
submissions. 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–NYSENAT–2018–18
and should be submitted on or before
September 10, 2018.
daltland on DSKBBV9HB2PROD with NOTICES
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2018–17830 Filed 8–17–18; 8:45 am]
BILLING CODE 8011–01–P
20 17
CFR 200.30–3(a)(12).
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[Public Notice: 10512]
Pursuant to section 7045(c) (1) of the
Department of State, Foreign
Operations, and Related Programs
Appropriations Act, 2018 (Div. K, Pub.
L. 115–141), I hereby certify that the
central Government of Haiti is taking
effective steps, which are in addition to
steps taken since the certification and
report submitted on August 3, 2017, if
applicable, to:
• Strengthen the rule of law in Haiti,
including by selecting judges in a
transparent manner based on merit;
reducing pre-trial detention; respecting
the independence of the judiciary; and
improving governance by implementing
reforms to increase transparency and
accountability, including through the
penal and criminal codes;
• Combat corruption, including by
implementing the anti-corruption law
enacted in 2014 and prosecuting corrupt
officials;
• Increase government revenues,
including by implementing tax reforms,
and increase expenditures on public
services; and
• Resolve commercial disputes
between United States entities and the
Government of Haiti.
Dated: August 13, 2018.
Michael Pompeo,
Secretary of State.
[FR Doc. 2018–17920 Filed 8–17–18; 8:45 am]
BILLING CODE 4710–29–P
session begins at 9:30 a.m. (ET).
Preregistered speakers will address the
Board first. TVA management will
answer questions from the news media
following the Board meeting.
Agenda
1. Approval of minutes of the May 10,
2018, Board Meeting
2. Report from President and CEO
3. Report of the Finance, Rates, and
Portfolio Committee
A. FY 2019 Financial Plan and Budget
B. Rate adjustment
C. Financing authority
D. Nuclear fuel supply contracts
E. Integrated Supply Program
4. Report of the Audit, Risk, and
Regulation Committee
A. FY 2019 external auditor selection
5. Report of the External Relations
Committee
A. Public Land Protection Policy
6. Report of the Nuclear Oversight
Committee
7. Report of the People and Performance
Committee
A. Corporate goals
B. Long-term incentive plan revisions
C. Health savings account contract
CONTACT PERSON FOR MORE INFORMATION:
Please call TVA Media Relations at
(865) 632–6000, Knoxville, Tennessee.
People who plan to attend the meeting
and have special needs should call (865)
632–6000. Anyone who wishes to
comment on any of the agenda in
writing may send their comments to:
TVA Board of Directors, Board Agenda
Comments, 400 West Summit Hill
Drive, Knoxville, Tennessee 37902.
Dated: August 15, 2018.
Sherry A. Quirk,
General Counsel.
[FR Doc. 2018–17969 Filed 8–16–18; 11:15 am]
BILLING CODE 8120–08–P
TENNESSEE VALLEY AUTHORITY
[Meeting No. 18–03]
DEPARTMENT OF TRANSPORTATION
Sunshine Act Meetings
Federal Aviation Administration
9:30 a.m. (ET) on August
22, 2018.
PLACE: TVA West Tower Auditorium,
400 West Summit Hill Drive, Knoxville,
Tennessee.
STATUS: Open.
MATTERS TO BE CONSIDERED: The TVA
Board of Directors will hold a public
meeting. The public may comment on
any agenda item or subject at the public
listening session. Following the end of
the public listening session, the meeting
will be called to order to consider the
agenda items listed below. On-site
registration will be available until 15
minutes before the public listening
Availability of Noise Compatibility
Program for Chicago Executive
Airport, Wheeling and Prospect
Heights, Illinois
TIME AND DATE:
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Federal Aviation
Administration (FAA), DOT.
ACTION: Notice.
AGENCY:
The Federal Aviation
Administration (FAA) announces its
determination that the updated noise
exposure maps submitted by the
Chicago Executive Airport under the
provisions of the (Aviation Safety and
Noise Abatement Act) and Title 14 Code
of Federal Regulations (CFR) Part 150
SUMMARY:
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]]>Agencies
[Federal Register Volume 83, Number 161 (Monday, August 20, 2018)]
[Notices]
[Pages 42196-42198]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-17830]
[[Page 42196]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-83843; File No. SR-NYSENAT-2018-18]
Self-Regulatory Organizations; NYSE National, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its
Schedule of Fees and Rebates
August 14, 2018.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that, on August 1, 2018, NYSE National, Inc. (``Exchange'' or ``NYSE
National'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II 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 Schedule of Fees and Rebates to
specify that an ETP Holder may request that the Exchange aggregate its
eligible activity with activity of its ETP Holder affiliates for
purposes of charges or credits based on volume. 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 Schedule of Fees and Rebates to
specify that an ETP Holder may request that the Exchange aggregate its
eligible activity with activity of its ETP Holder affiliates for
purposes of charges or credits based on volume. As noted below, the
proposed provision is based on similar provisions in the price lists of
the Exchange's affiliates New York Stock Exchange LLC (``NYSE''), NYSE
Arca, Inc. (``NYSE Arca''), and NYSE American Equities (``NYSE
American'') (together, the ``Exchange Affiliates'').\4\
---------------------------------------------------------------------------
\4\ See New York Stock Exchange Price List 2018, available at
https://www.nyse.com/publicdocs/nyse/markets/nyse/NYSE_Price_List.pdf; NYSE Arca Equities Fees and Charges, available
at https://www.nyse.com/publicdocs/nyse/markets/nyse-arca/NYSE_Arca_Marketplace_Fees.pdf; and the NYSE American Equities Price
List, available at https://www.nyse.com/publicdocs/nyse/markets/nyse-american/NYSE_America_Equities_Price_List.pdf.
---------------------------------------------------------------------------
The Exchange proposes to amend its Schedule of Fees and Rebates to
specify that an ETP Holder may request that the Exchange aggregate its
eligible activity with eligible activity of its ETP Holder affiliates
for purposes of charges or credits based on volume. The proposed rule
change is based on the rules of the Exchange Affiliates, which contain
substantially the same language.\5\ The Exchange notes that this type
of provision is also common among many other exchanges.\6\
---------------------------------------------------------------------------
\5\ See note 4, supra. The Exchange proposes to omit a reference
to Designated Market Makers or ``DMMs'' found in price lists of the
Exchange Affiliates because the Exchange does not currently have
DMMs.
\6\ See, e.g., NASDAQ Stock Market Rule 7027, NASDAQ Options
Market Rules at Chapter XV, and the NASDAQ PHLX LLC Pricing
Schedule, available at https://nasdaqphlx.cchwallstreet.com/NASDAQPHLXTools/PlatformViewer.asp?selectednode=chp_1_5_2&manual=%2Fnasdaqomxphlx%2Fphlx%2Fphlx-rulesbrd%2F.
---------------------------------------------------------------------------
As proposed, for purposes of applying any provision of the
Exchange's Schedule of Fees and Rebates where the charge assessed, or
credit provided, by the Exchange depends on the volume of an ETP
Holder's activity (i.e., where a volume threshold or volume percentage
is required to obtain the pricing), an ETP Holder may request that the
Exchange aggregate its eligible activity with eligible activity of its
ETP Holder affiliates. The Exchange further proposes that an ETP Holder
requesting aggregation of eligible affiliate activity would be required
to (1) certify to the Exchange which affiliate(s) it seeks to aggregate
prior to receiving approval for aggregation, and (2) inform the
Exchange immediately of any event that causes an entity to cease being
an affiliate(s). The Exchange would review available information
regarding the entities and reserves the right to request additional
information to verify the affiliate status of an entity. As further
proposed, the Exchange would approve a request, unless it determines
that the certificate is not accurate.
The Exchange also proposes that if two or more ETP Holders become
affiliated on or prior to the sixteenth day of a month, and submit the
required request for aggregation on or prior to the twenty-second day
of the month, an approval of the request would be deemed to be
effective as of the first day of that month. If two or more ETP Holders
become affiliated after the sixteenth day of a month, or submit a
request for aggregation after the twenty second day of the month, an
approval of the request would be deemed to be effective as of the first
day of the next calendar month. The Exchange believes that this
requirement, which is also similar to requirements of the Exchange
Affiliates, would be a fair and objective way to apply the aggregation
rule to fees and streamline the billing process. The Exchange further
proposes to provide that for purposes of applying any provision of the
Schedule of Fees and Rebates where the charge assessed, or credit
provided, by the Exchange depends upon the volume of an ETP Holder's
activity, references to an entity would be deemed to include the entity
and its affiliates that have been approved for aggregation. The
Exchange proposes to provide that ETP Holders may not aggregate volume
where the Schedule of Fees and Rebates specifies that aggregation is
not permitted.\7\
---------------------------------------------------------------------------
\7\ See note 4, supra.
---------------------------------------------------------------------------
Finally, the Exchange proposes that for purposes of the Schedule of
Fees and Rebates, the term ``affiliate'' would mean any ETP Holder
under 75% common ownership or control of that ETP Holder. Once again,
this is consistent with the rules of the Exchange Affiliates and other
exchanges.\8\
---------------------------------------------------------------------------
\8\ See note 4, supra; see also, e.g., NASDAQ Rule 7027(c).
---------------------------------------------------------------------------
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 6(b)(5) of the Act,\10\ in
particular, because it provides for the equitable allocation of
reasonable dues,
[[Page 42197]]
fees, and other charges among its members, issuers and other persons
using its facilities and does not unfairly discriminate between
customers, issuers, brokers or dealers, and because it is designed to
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general, to protect investors and the public
interest.
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\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(4) & (5).
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The Exchange believes that the proposed rule change establishes a
reasonable and clear process for the Exchange to treat affiliated ETP
Holders for purposes of assessing charges or credits that are based on
volume. The provision is equitable because all ETP Holders seeking to
aggregate their activity are subject to the same parameters, in
accordance with a standard that recognizes an affiliation as of the
month's beginning or close in time to when the affiliation occurs,
provided the ETP Holder submits a timely request. Moreover, the
proposed billing aggregation language is substantially similar to
aggregation language adopted by the NYSE Affiliates and other
exchanges.\11\
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\11\ See notes 5-6, supra.
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The Exchange notes that the proposal would serve to reduce
disparity of treatment between ETP Holders with regard to the pricing
of different services and reduce any potential for confusion on how
activity can be aggregated. The Exchange believes that the proposed
rule change avoids disparate treatment of ETP Holders that have divided
their various business activities between separate corporate entities
as compared to ETP Holders that operate those business activities
within a single corporate entity. The Exchange further notes that the
proposed rule change is reasonable and is designed to remove
impediments to and perfect the mechanism of a free and open market by
harmonizing the manner by which the Exchanges permits ETP Holders to
aggregate volume with other exchanges. As noted, the Exchange
Affiliates and other markets all have the same standard that the
Exchange is proposing to adopt.
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,\12\ the Exchange
believes that the proposed rule change would not impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act. The proposed rule change, which would apply
equally to all ETP Holders, would incent submission of order flow to a
public exchange by permitting the Exchange to apply price discounts to
ETP Holders that have requested aggregation with an affiliated ETP
Holder and is substantially similar to rules adopted by the Exchange
Affiliates as well as other exchanges. Because the market for order
execution and routing is extremely competitive, ETP Holders may readily
opt to disfavor the Exchange if they believe that alternatives offer
them better value. The Exchange does not believe the proposed changes
will impair the ability of ETP Holders or competing order execution
venues to maintain their competitive standing in the financial markets.
Moreover, because the Exchange does not propose to alter or modify
specific fees or credits applicable to ETP Holders, the proposal does
not impose any burden on competition.
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\12\ 15 U.S.C. 78f(b)(8).
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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.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \13\ and Rule 19b-4(f)(6) thereunder.\14\
Because the proposed rule change does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder. \15\
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\13\ 15 U.S.C. 78s(b)(3)(A)(iii).
\14\ 17 CFR 240.19b-4(f)(6).
\15\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \16\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\17\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has
requested that the Commission waive the 30-day operative delay so that
the proposal may become operative immediately upon filing. According to
the Exchange, waiving the 30-day operative delay would be consistent
with the protection of investors and the public interest because it
would enable the Exchange to harmonize its rules with respect to
aggregation of affiliate activity with the rules of its affiliates
without delay and, as a result, reduce potential confusion for
investors. The Exchange explains that as it is harmonizing its Schedule
of Fees and Rebates with the requirements in the price lists of its
affiliates as well as other exchanges, the proposed change does not
present any new or novel issues. The Commission believes that waiving
the 30-day operative delay is consistent with the protection of
investors and the public interest. Accordingly, the Commission waives
the 30-day operative delay and designates the proposed rule change
operative upon filing.\18\
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\16\ 17 CFR 240.19b-4(f)(6).
\17\ 17 CFR 240.19b-4(f)(6)(iii).
\18\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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) \19\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\19\ 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
[[Page 42198]]
Send an email to [email protected]. Please include
File Number SR-NYSENAT-2018-18 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-NYSENAT-2018-18. 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; the Commission does not edit
personal identifying information from submissions. 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-NYSENAT-2018-18 and should
be submitted on or before September 10, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
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\20\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2018-17830 Filed 8-17-18; 8:45 am]
BILLING CODE 8011-01-P
