Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Fees for Routing Orders in UTP Securities Priced Below $1.00, 52579-52581 [2018-22539]
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Federal Register / Vol. 83, No. 201 / Wednesday, October 17, 2018 / Notices
TABLE I–1—PROPOSED PRICE
CHANGES—Continued
Product name
Average price
increase
(percent)
Return Sectional Center
Facility ........................
Return Delivery Unit ......
First-Class Package Service
Commercial ...................
Retail .............................
Retail Ground .......................
7.3
6.4
12.3
11.9
13.3
3.9
Domestic Extra Services
Premium Forwarding Service
Enrollment Fee ..................
Adult Signature Service
Basic ..............................
Person-Specific .............
Competitive Post Office Box
Package Intercept Service ...
4.9–11.1
8.5
8.3
10.0
4.8
International Competitive Products
Global Express Guaranteed
Priority Mail Express International ..............................
Priority Mail International ......
International Priority Airmail
International Priority Airmail M-Bags ...............
International Surface Air Lift
International Surface Air
Lift M-Bags .................
Airmail M-Bags .....................
First-Class Package International Service ................
1. The Commission establishes Docket
No. CP2019–3 to provide interested
persons an opportunity to express views
and offer comments on whether the
planned changes are consistent with 39
U.S.C. 3632, 3633, and 3642, 39 CFR
part 3015, and 39 CFR 3020 subparts B
and E.
2. Comments are due no later than
October 25, 2018.
3. Pursuant to 39 U.S.C. 505, the
Commission appoints Lawrence Fenster
to serve as an officer of the Commission
(Public Representative) to represent the
interests of the general public in this
docket.
4. The Secretary shall arrange for
publication of this Order in the Federal
Register.
By the Commission.
Stacy L. Ruble,
Secretary.
3.9
3.9
19.9
19.9
19.9
19.9
5.0
3.9
International Ancillary Services and Special
Services
10.4
Source: See Governors’ Decision No. 18–1
at 2–5; Mail Classification Schedule sections
2105.6, 2110.6, 2115.6, 2125.6, 2135.6,
2305.6, 2315.6, 2335.6, and 2510.9.6.
daltland on DSKBBV9HB2PROD with NOTICES
II. Initial Administrative Actions
The Commission establishes Docket
No. CP2019–3 to consider the Postal
Service’s Notice. Interested persons may
express views and offer comments on
whether the planned changes are
consistent with 39 U.S.C. 3632, 3633,
and 3642, 39 CFR part 3015, and 39 CFR
3020 subparts B and E. Comments are
due no later than October 25, 2018. For
specific details of the planned price
changes, interested persons are
encouraged to review the Notice, which
is available on the Commission’s
website at www.prc.gov.
Pursuant to 39 U.S.C. 505, Lawrence
Fenster is appointed to serve as Public
Representative to represent the interests
of the general public in this docket.
1. Purpose
[Release No. 34–84411; File No. SR–NYSE–
2018–47]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend the
Fees for Routing Orders in UTP
Securities Priced Below $1.00
VerDate Sep<11>2014
19:46 Oct 16, 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 October
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 to amend the fees for routing
orders in UTP Securities priced below
$1.00. The Exchange proposes to
implement these changes to its Price
List effective October 1, 2018. The
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
It is ordered:
Jkt 247001
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.
SECURITIES AND EXCHANGE
COMMISSION
1 15
III. Ordering Paragraphs
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
October 11, 2018.
International Ancillary Services ....................................
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.
BILLING CODE 7710–FW–P
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The Exchange proposes to amend its
Price List to amend the fees for routing
orders in UTP Securities priced below
$1.00.
The Exchange proposes to implement
these changes to its Price List effective
October 1, 2018.
Currently, for executions in securities
with a price below $1.00 that route to
and execute on an Away Market,4 the
Exchange charges a fee of 0.30% of the
total dollar value of the transaction for
executions in an Away Market auction
as well as all other executions.
The Exchange proposes to amend this
fee to charge $0.0005 per share
execution in an NYSE American
auction, $0.0010 per share execution in
an Away Market auction at venues other
than NYSE American, and 0.30% of
total dollar value of the transaction for
all other executions.
*
*
*
*
*
The proposed changes are not
otherwise intended to address any other
issues, and the Exchange is not aware of
any problems that member
organizations would have in complying
with the proposed change.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
4 The term ‘‘Away Market’’ is defined in Rule
1.1(ff) to mean any exchange, alternative trading
system (‘‘ATS’’) or other broker-dealer (1) with
which the Exchange maintains an electronic
linkage, and (2) that provides instantaneous
responses to orders routed from the Exchange.
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Federal Register / Vol. 83, No. 201 / Wednesday, October 17, 2018 / Notices
Section 6(b) of the Act,5 in general, and
furthers the objectives of Sections
6(b)(4) and 6(b)(5) of the Act,6 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 its
proposed routing fees of $0.0005 per
share for NYSE American and $0.0010
per share for venues other than NYSE
American for securities with a price
under $1.00 are reasonable, equitable
and not an unfairly discriminatory
allocation of fees because the fees would
be applicable to all member
organizations in an equivalent manner.
Moreover, the proposed fees for routing
shares are also reasonable, equitable and
not unfairly discriminatory because the
proposal would align routing fees with
fees for away market auctions. For
example, NYSE American charges
$0.0005 per share for executions at the
open and close for securities below
$1.00 7 and BZX charges 0.00100 per
share for closing auctions in BZX listed
securities.8 Further, the proposal to
charge a fee of 0.30% of total dollar
value for transactions for all other
executions in securities with a price
under $1.00 is reasonable, equitable and
not unfairly discriminatory because it is
consistent with fees charged on other
exchanges.9
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,10 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
5 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4) & (5).
7 See https://www.nyse.com/publicdocs/nyse/
markets/nyse-american/NYSE_America_Equities_
Price_List.pdf.
8 See https://markets.cboe.com/us/equities/
membership/fee_schedule/bzx/.
9 NASDAQ, for example, charges a fee of 0.30%
(i.e. 30 basis points) of total dollar volume to
remove liquidity for shares executed below $1.00.
See NASDAQ Fee Schedule at https://
www.nasdaqtrader.com/Trader.aspx?id=
PriceListTrading2.
10 15 U.S.C. 78f(b)(8).
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6 15
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change would foster liquidity provision
and stability in the marketplace, thereby
promoting price discovery and
transparency and enhancing order
execution opportunities for member
organizations. In this regard, the
Exchange believes that the transparency
and competitiveness of attracting
additional executions on an exchange
market would encourage 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 changes will
impair the ability of member
organizations or competing order
execution venues to maintain their
competitive standing in the financial
markets.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change is effective
upon filing pursuant to Section
19(b)(3)(A) 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.
11 15
12 17
PO 00000
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
Frm 00205
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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.
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–2018–47 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street
NE, Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSE–2018–47. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet 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
13 15
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U.S.C. 78s(b)(2)(B).
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Federal Register / Vol. 83, No. 201 / Wednesday, October 17, 2018 / Notices
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–NYSE–2018–47 and should
be submitted on or before November 7,
2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–22539 Filed 10–16–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–84410; File No. SR–LCH
SA–2018–004]
Self-Regulatory Organizations; LCH
SA; Order Approving Proposed Rule
Change Relating to Implementation of
Electronic Exercise Platform
October 11, 2018.
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I. Introduction
On August 24, 2018, Banque Centrale
de Compensation, which conducts
business under the name LCH SA (‘‘LCH
SA’’), filed with the Securities and
Exchange Commission (‘‘Commission’’),
pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 a
proposed rule change (the ‘‘Proposed
Rule Change’’) to amend its (i) CDS
Clearing Rule Book (‘‘Rule Book’’), (ii)
CDS Clearing Supplement
(‘‘Supplement’’), and (iii) CDS Clearing
Procedures (‘‘Procedures’’) to
incorporate new terms and to make
conforming, clarifying, and clean-up
changes to implement a new electronic
exercise platform (‘‘EEP’’) for the
exercise of options on index credit
default swaps (‘‘CDS Options’’) by
Clearing Members and their Clients. The
proposed rule change was published for
comment in the Federal Register on
September 5, 2018.3 The Commission
has not received any comments on the
proposed rule change. For the reasons
14 17
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 Securities Exchange Act Release No. 34–83983
(Aug. 29, 2018), 83 FR 45155 (Sept. 5, 2018) (SR–
LCH SA–2018–004) (‘‘Notice’’).
VerDate Sep<11>2014
19:46 Oct 16, 2018
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discussed below, the Commission is
approving the proposed rule change.
II. Description of the Proposed Rule
Change
The proposed rule change would
create an EEP for CDS Options to
capture and support decisions to
exercise CDS Options by Clearing
Members and their Clients.4 Currently,
LCH SA matches a Clearing Member or
Client holding the option to either buy
or sell protection on the underlying
index credit default swap (‘‘CDS’’)
(‘‘CDS Option buyer’’), with a Clearing
Member or Client obligated to either buy
or sell protection, as applicable, on the
underlying index CDS (‘‘CDS Option
seller’’) (this transaction is a ‘‘matched
pair’’).5 The creation of the matched
pair allows the CDS Option buyer to
exercise or abandon the CDS Option. If
the CDS Option buyer exercises the CDS
Option, the CDS Option buyer must
notify the CDS Option seller manually
via email and then inform LCH SA that
the exercise notice has been
successfully delivered. LCH SA then
manually executes the exercise
decisions and updates its risk system.
Under the proposed rule change, LCH
would still create matched pairs to
allow the exercise or abandonment of a
CDS Option. The proposed rule change
would, however, eliminate the manual
notification process between the CDS
Option buyer and CDS Option seller by
providing, through the EEP, an
electronic process for exercising CDS
Options. Specifically, a CDS Option
buyer would submit an intent through
the EEP to either exercise or abandon
the CDS Option (‘‘Option Intent’’). If
validly submitted before the expiration
date of the CDS Option, the Option
Intent would serve as notice to the CDS
Option seller that the CDS Option buyer
is going to exercise or abandon the CDS
Option. The proposed rule change
would require Clearing Members and
Clients to use the EEP system to exercise
CDS Options. The proposed rule change
would also require Clearing Members to
delegate to Clients the ability to directly
exercise CDS Options related to their
cleared transactions (‘‘Client Cleared
Transactions’’). The EEP would capture
CDS Option buyers’ exercise decisions
in real time and notify the relevant CDS
Option sellers in real time. In addition,
4 Capitalized terms used herein but not otherwise
defined have the meaning set forth in the Rule
Book, Supplement, and Procedures, which are
available at https://www.lch.com/resources/rulesand-regulations/sa-rulebooks.
5 For more information regarding the operation of
CDS Options, see Exchange Act Release No. 34–
82109 (Nov. 17, 2017), 82 FR 55905 (Nov. 24, 2017)
(SR–LCH SA 2017–006; SR–LCH SA–2017–007).
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52581
the EEP would validate and check
exercise decisions and facilitate the
anonymous exercise of CDS Options.
The proposed rule change would
create and implement the EEP through
amendments to LCH SA’s Rule Book,
Supplement, and Procedures. These
amendments are summarized below
according to how they affect: (i) The
exercise of CDS Options directly by
Clients; (ii) the operational process for
the exercise of CDS Options in the EEP;
and (iii) technical specifications of the
EEP. The proposed rule change would
also make other changes to the Rule
Book, Supplement, and Procedures, as
discussed below.
A. Exercise of CDS Options Directly by
Clients
The proposed rule change would add
new provisions to allow for the exercise
of CDS Options in the EEP directly by
Clients.6 Specifically, with respect to
those CDS Options transactions that are
Client Cleared Transactions, new
Section 6.4 of the Supplement would
require Clearing Members to designate
their relevant Clients to act on their
behalf via the EEP.7 The Client so
designated would be the Exercise
Delegation Beneficiary. Moreover, the
proposed rule change would amend the
Rule Book to require that Clearing
Members delegate to their Clients
sufficient power to act on their behalf
via the EEP and to ensure that their
Clients have created an account in the
LCH Portal for use of the EEP (‘‘Client
Portal Account’’) before delegating such
power.8 Finally, the proposed rule
change would amend the Rule Book to
require Clients to exercise their
delegated power only through their
Client Portal Account unless the EEP is
or will be unavailable for the exercise of
CDS Options (an ‘‘EEP Failure Event’’).9
The proposed rule change would add
similar provisions to Appendix VIII of
the Supplement. Appendix VIII
provides mandatory provisions that are
incorporated into transactions between
a Clearing Member and its Client.
Changes to Appendix VIII are necessary
to incorporate the conditions described
above directly into the terms of the
transaction between a Clearing Member
and its Client. Specifically, the
proposed rule change would add new
Section 5, which would provide that the
Clearing Member and its Client agree
that the Clearing Member will designate
6 The proposed rule change would also apply
these provisions to FCM Clearing Members who
clear credit-default swaps and CDS Options for
their Clients. Notice, 83 FR at 45156.
7 Notice, 83 FR at 45158.
8 Notice, 83 FR at 45156.
9 Id.
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]]>Agencies
[Federal Register Volume 83, Number 201 (Wednesday, October 17, 2018)]
[Notices]
[Pages 52579-52581]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-22539]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-84411; File No. SR-NYSE-2018-47]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend the Fees for Routing Orders in UTP Securities Priced Below $1.00
October 11, 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 October 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 to amend the fees for
routing orders in UTP Securities priced below $1.00. The Exchange
proposes to implement these changes to its Price List effective October
1, 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 Exchange proposes to amend its Price List to amend the fees for
routing orders in UTP Securities priced below $1.00.
The Exchange proposes to implement these changes to its Price List
effective October 1, 2018.
Currently, for executions in securities with a price below $1.00
that route to and execute on an Away Market,\4\ the Exchange charges a
fee of 0.30% of the total dollar value of the transaction for
executions in an Away Market auction as well as all other executions.
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\4\ The term ``Away Market'' is defined in Rule 1.1(ff) to mean
any exchange, alternative trading system (``ATS'') or other broker-
dealer (1) with which the Exchange maintains an electronic linkage,
and (2) that provides instantaneous responses to orders routed from
the Exchange.
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The Exchange proposes to amend this fee to charge $0.0005 per share
execution in an NYSE American auction, $0.0010 per share execution in
an Away Market auction at venues other than NYSE American, and 0.30% of
total dollar value of the transaction for all other executions.
* * * * *
The proposed changes are not otherwise intended to address any
other issues, and the Exchange is not aware of any problems that member
organizations would have in complying with the proposed change.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with
[[Page 52580]]
Section 6(b) of the Act,\5\ in general, and furthers the objectives of
Sections 6(b)(4) and 6(b)(5) of the Act,\6\ 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.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(4) & (5).
---------------------------------------------------------------------------
The Exchange believes that its proposed routing fees of $0.0005 per
share for NYSE American and $0.0010 per share for venues other than
NYSE American for securities with a price under $1.00 are reasonable,
equitable and not an unfairly discriminatory allocation of fees because
the fees would be applicable to all member organizations in an
equivalent manner. Moreover, the proposed fees for routing shares are
also reasonable, equitable and not unfairly discriminatory because the
proposal would align routing fees with fees for away market auctions.
For example, NYSE American charges $0.0005 per share for executions at
the open and close for securities below $1.00 \7\ and BZX charges
0.00100 per share for closing auctions in BZX listed securities.\8\
Further, the proposal to charge a fee of 0.30% of total dollar value
for transactions for all other executions in securities with a price
under $1.00 is reasonable, equitable and not unfairly discriminatory
because it is consistent with fees charged on other exchanges.\9\
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\7\ See https://www.nyse.com/publicdocs/nyse/markets/nyse-american/NYSE_America_Equities_Price_List.pdf.
\8\ See https://markets.cboe.com/us/equities/membership/fee_schedule/bzx/.
\9\ NASDAQ, for example, charges a fee of 0.30% (i.e. 30 basis
points) of total dollar volume to remove liquidity for shares
executed below $1.00. See NASDAQ Fee Schedule at https://www.nasdaqtrader.com/Trader.aspx?id=PriceListTrading2.
---------------------------------------------------------------------------
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,\10\ 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 foster liquidity provision and stability in the
marketplace, thereby promoting price discovery and transparency and
enhancing order execution opportunities for member organizations. In
this regard, the Exchange believes that the transparency and
competitiveness of attracting additional executions on an exchange
market would encourage 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.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78f(b)(8).
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Finally, the Exchange notes that it operates in a highly
competitive market in which market participants can readily favor
competing venues if they deem fee levels at a particular venue to be
excessive or rebate opportunities available at other venues to be more
favorable. In such an environment, the Exchange must continually adjust
its fees and rebates to remain competitive with other exchanges and
with alternative trading systems that have been exempted from
compliance with the statutory standards applicable to exchanges.
Because competitors are free to modify their own fees and credits in
response, and because market participants may readily adjust their
order routing practices, the Exchange believes that the degree to which
fee changes in this market may impose any burden on competition is
extremely limited. As a result of all of these considerations, the
Exchange does not believe that the proposed changes will impair the
ability of member organizations or competing order execution venues to
maintain their competitive standing in the financial markets.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change is effective upon filing pursuant to
Section 19(b)(3)(A) \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 Number SR-NYSE-2018-47 on the subject line.
Paper Comments
Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street NE,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSE-2018-47. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet 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
[[Page 52581]]
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-NYSE-2018-47
and should be submitted on or before November 7, 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. 2018-22539 Filed 10-16-18; 8:45 am]
BILLING CODE 8011-01-P
