Self-Regulatory Organizations; NYSE National, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its Schedule of Fees To Adopt the Same Billing Dispute Practice as the Exchange's Affiliates and Other Exchanges, 53347-53349 [2018-22903]

Download as PDF Federal Register / Vol. 83, No. 204 / Monday, October 22, 2018 / Notices 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– CboeBZX–2018–076 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–CboeBZX–2018–076. 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 this filing will also 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 Number SR–CboeBZX–2018–076 and should be submitted on or before November 13, 2018. daltland on DSKBBV9HB2PROD with NOTICES For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.33 Eduardo A. Aleman, Assistant Secretary. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–84430; File No. SR– NYSENAT–2018–23] Self-Regulatory Organizations; NYSE National, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its Schedule of Fees To Adopt the Same Billing Dispute Practice as the Exchange’s Affiliates and Other Exchanges October 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 3, 2018, NYSE National, Inc. (the ‘‘Exchange’’ or ‘‘NYSE National’’) filed with the Securities and Exchange Commission (the ‘‘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 adopt the same billing dispute practice as the Exchange’s affiliates and other exchanges. 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. [FR Doc. 2018–22909 Filed 10–19–18; 8:45 am] BILLING CODE 8011–01–P 1 15 U.S.C. 78s(b)(1). U.S.C. 78a. 3 17 CFR 240.19b–4. 2 15 33 17 CFR 200.30–3(a)(12). VerDate Sep<11>2014 18:12 Oct 19, 2018 Jkt 247001 PO 00000 Frm 00142 Fmt 4703 53347 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 adopt the same billing dispute practice as the Exchange’s affiliates and other exchanges. As discussed below, the proposed provision would be identical to provision [sic] in the fee schedules of the Exchange’s affiliates the New York Stock Exchange LLC (‘‘NYSE’’), NYSE Arca, Inc. (‘‘NYSE Arca’’), and NYSE American LLC (‘‘NYSE American’’) as well as other equities and options exchanges. Background The Exchange proposes to amend its Schedule of Fees and Rebates to adopt a billing procedure to prevent ETP Holders from contesting their bills long after they have been sent an invoice. The procedure proposed by the Exchange is the same as that in place at the Exchange’s equities and options affiliates 4 and substantially the same as that in place at other equities and options exchanges.5 4 See New York Stock Exchange Price List 2018, available at https://www.nyse.com/publicdocs/nyse/ markets/nyse/NYSE_Price_List.pdf (‘‘All fee disputes concerning fees billed by the Exchange must be submitted to the Exchange in writing and must be accompanied by supporting documentation. All fee disputes must be submitted no later than sixty (60) days after receipt of a billing invoice’’); NYSE Arca Equities Fees and Charges, available at https://www.nyse.com/publicdocs/nyse/ markets/nyse-arca/NYSE_Arca_Marketplace_ Fees.pdf (same); NYSE Arca Options Fees and Charges, available at https://www.nyse.com/ publicdocs/nyse/markets/arca-options/NYSE_Arca_ Options_Fee_Schedule.pdf (same); NYSE American Equities Price List, available at https:// www.nyse.com/publicdocs/nyse/markets/nyseamerican/NYSE_America_Equities_Price_List.pdf (same); and NYSE American Options Fee Schedule, available at https://www.nyse.com/publicdocs/nyse/ markets/american-options/NYSE_American_ Options_Fee_Schedule.pdf (same). 5 See NASDAQ Equity Rule 7007(b) (All pricing disputes concerning fees or rebates, which are listed in paragraph (a), which are billed by the Exchange must be submitted to the Exchange in writing and must be accompanied by supporting documentation and all pricing disputes must be submitted no later than sixty (60) days after receipt of a billing invoice); NASDAQ Options Rules, Chapter XV, Sect. 7 (same); NASDAQ BX Options Rules, Chapter XV (Options Pricing), Sec. 7(b)[sic] (BX Options Fee Disputes) (same); NASDAQ PHLX LLC Pricing Schedule, available at https://nasdaqtrader.com/ Micro.aspx?id=PHLXPricing (same); NASDAQ ISE Schedule of Fees Preface, available at https:// ise.cchwallstreet.com/tools/PlatformViewer.asp? selectednode=chp_1_1_1&manual=%2Fcontents %2Fise%2Fise-fee%2F (same); NASDAQ GEMX Schedule of Fees, available at https:// nasdaqgemx.cchwallstreet.com/tools/ PlatformViewer.asp?selectednode=chp_1_1_ 1&manual=%2Fcontents%2Fgemx%2Fise-fee- Continued Sfmt 4703 E:\FR\FM\22OCN1.SGM 22OCN1 53348 Federal Register / Vol. 83, No. 204 / Monday, October 22, 2018 / Notices As proposed, all fee disputes concerning fees billed by the Exchange would have to be submitted to the Exchange in writing and accompanied by supporting documentation. Further, all fee disputes would have be [sic] submitted no later than sixty (60) days after receipt of a billing invoice. After sixty days, all fees assessed by the Exchange would be considered final. The Exchange believes that this requirement, which is the same as that in place at the Exchange’s equities and options market affiliates,6 will streamline the billing dispute process. The Exchange believes it is reasonable for ETP Holders to become aware of any potential billing errors within sixty calendar days of receiving an invoice. Requiring that ETP Holders dispute an invoice within this time period will encourage ETP Holders to review their invoices promptly so that any disputed charges can be addressed in a timely manner while the information and data underlying those charges (e.g., applicable fees and order information) is still easily and readily available. This practice will avoid issues that may arise when ETP Holders do not dispute an invoice in a timely manner, and will conserve Exchange resources that would have to be expended to resolve untimely billing disputes.7 In order for ETP Holders to be fully aware of this rule regarding fee disputes, the Exchange proposes to include the language proposed for the Schedule of Fees and Rebates in each customer invoice. daltland on DSKBBV9HB2PROD with NOTICES 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,8 in general, and furthers the objectives of Sections 6(b)(4) and 6(b)(5) of the Act,9 in particular, because it provides for the equitable allocation of reasonable dues, fees, and other charges among its members, issuers and other persons gemx%2F (same); NASDAQ MRX Schedule of Fees, available at https://nasdaqmrx.cchwallstreet.com/ tools/PlatformViewer.asp?selectednode=chp_1_1_ 1&manual=%2Fcontents%2Fmrx%2Fise-feemrx%2F (same); MIAX Options Fee Schedule, available at https://www.miaxoptions.com/sites/ default/files/fee_schedule-files/MIAX_Options_Fee_ Schedule_08072018.pdf (same); and MIAX Pearl Fee Schedule, available at https:// www.miaxoptions.com/sites/default/files/fee_ schedule-files/MIAX_Options_Fee_Schedule_ 08072018.pdf (same). 6 See note 4, supra. 7 The same rationale has been advanced by the other markets that have adopted the proposed billing procedure. See, e.g., Securities Exchange Act Release No. 71286 [sic] (January 14, 2014), 79 FR 3442, 3442 (January 21, 2014) (SR–ISE–2014–02). 8 15 U.S.C. 78f(b). 9 15 U.S.C. 78f(b)(4) & (5). VerDate Sep<11>2014 18:12 Oct 19, 2018 Jkt 247001 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 the requirement to submit all billing disputes in writing, and with supporting documentation, within sixty days from receipt of the invoice, is reasonable because the Exchange provides ample tools to properly and swiftly monitor and account for various charges incurred in a given month. Also, the proposal is equitable and not unfairly discriminatory because it applies equally to all ETP Holders. The proposed provision regarding fee disputes in the Schedule of Fees and Rebates promotes the protection of investors and the public interest by providing a clear and concise mechanism in Exchange Rules for ETP Holders to dispute fees and for the Exchange to review such disputes in a timely manner. In addition, the proposed 60-day limitation is fair and equitable because it will be implemented prospectively on all ETP Holders, only applying to invoices issued after the proposed rule change becomes operative. Moreover, the proposed billing dispute language, which will lower the Exchange’s administrative burden, is the same as the billing dispute language adopted by the NYSE Affiliates as well as other exchanges.10 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,11 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 establish a clear process for billing disputes, and is the same as rules adopted by the Exchange’s 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 10 See 11 15 PO 00000 notes 4–5, supra. U.S.C. 78f(b)(8). Frm 00143 Fmt 4703 Sfmt 4703 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 12 and Rule 19b–4(f)(6) thereunder.13 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.14 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) 15 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 12 15 U.S.C. 78s(b)(3)(A)(iii). CFR 240.19b–4(f)(6). 14 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. 15 15 U.S.C. 78s(b)(2)(B). 13 17 E:\FR\FM\22OCN1.SGM 22OCN1 Federal Register / Vol. 83, No. 204 / Monday, October 22, 2018 / Notices 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: [FR Doc. 2018–22903 Filed 10–19–18; 8:45 am] Electronic Comments BILLING CODE 8011–01–P • 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– NYSENAT–2018–23 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. daltland on DSKBBV9HB2PROD with NOTICES For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.16 Eduardo A. Aleman, Assistant Secretary. All submissions should refer to File Number SR–NYSENAT–2018–23. 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 Number SR–NYSENAT–2018–23 and should be submitted on or before November 13, 2018. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–84431; File No. SR– CboeEDGX–2018–046] Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use on Cboe EDGX Exchange, Inc. October 16, 2018. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on October 1, 2018, Cboe EDGX Exchange, Inc. (the ‘‘Exchange’’ or ‘‘EDGX’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I, II and III below, which Items have been prepared by the Exchange. The Exchange has designated the proposed rule change as one establishing or changing a member due, fee, or other charge imposed by the Exchange under Section 19(b)(3)(A)(ii) of the Act 3 and Rule 19b–4(f)(2) thereunder,4 which renders the proposed rule change effective upon filing with the Commission. 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 filed a proposal to amend the Exchange’s fee schedule applicable to its equities trading platform (‘‘EDGX Equities’’) to eliminate the Investor Depth Tier. The text of the proposed rule change is available at the Exchange’s website at www.markets.cboe.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 Exchange included statements 16 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(ii). 4 17 CFR 240.19b–4(f)(2). 1 15 VerDate Sep<11>2014 18:12 Oct 19, 2018 Jkt 247001 PO 00000 Frm 00144 Fmt 4703 Sfmt 4703 53349 concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant 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 EDGX Equities fee schedule offers seven Add Volume Tiers that provide enhanced rebates, ranging from of $0.0025 to $0.0032 per share, for displayed orders that add liquidity in Tapes A, B, and C and yield fee codes B,5 V,6 Y,7 3 8 and 4.9 The purpose of the proposed rule change is to amend the EDGX Equities fee schedule to eliminate the Investor Depth Tier as this tier has not been successful in attracting the required order flow to the Exchange. Currently, under the Investor Depth Tier a Member is eligible for an enhanced rebate of $0.0031 per share where that Member: (i) Adds an average daily volume (‘‘ADV’’) 10 greater than or equal to 0.12% of the total consolidated volume (‘‘TCV’’); 11 (ii) has an ‘‘added liquidity’’ as a percentage of ‘‘added plus removed liquidity’’ greater than or equal to 85%; and (iii) adds an ADV greater than or equal to 400,000 shares as non-displayed orders that yield fee code HA,12 HI,13 and/or MM.14 The Investor Depth Tier was designed to encourage Members to bring a 5 ‘‘B’’ is associated with displayed orders that add liquidity on EDGX for Tape B. 6 ‘‘V’’ is associated with displayed orders that add liquidity on EDGX for Tape A. 7 ‘‘Y’’ is associated with displayed orders that add liquidity on EDGX for Tape C. 8 ‘‘3’’ is associated with displayed orders that add liquidity on EDGX for Tape A or C during the postmarket or pre-market trading sessions. 9 ‘‘4’’ is associated with displayed orders that add liquidity on EDGX for Tape B during the postmarket or pre-market trading sessions. 10 ‘‘ADV’’ means average daily volume calculated as the number of shares added to, removed from, or routed by, the Exchange, or any combination or subset thereof, per day. ADV is calculated on a monthly basis. 11 ‘‘TCV’’ means total consolidated volume calculated as the volume reported by all exchanges and trade reporting facilities to a consolidated transaction reporting plan for the month for which the fees apply. 12 ‘‘HA’’ is associated with non-displayed orders that add liquidity on EDGX. 13 ‘‘HI’’ is associated with non-displayed orders that add liquidity on EDGX and receive price improvement. 14 ‘‘MM’’ is associated with non-displayed orders that add liquidity on EDGX using a Mid-Point Peg. E:\FR\FM\22OCN1.SGM 22OCN1

Agencies

[Federal Register Volume 83, Number 204 (Monday, October 22, 2018)]
[Notices]
[Pages 53347-53349]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-22903]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84430; File No. SR-NYSENAT-2018-23]


Self-Regulatory Organizations; NYSE National, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its 
Schedule of Fees To Adopt the Same Billing Dispute Practice as the 
Exchange's Affiliates and Other Exchanges

October 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 3, 2018, NYSE National, Inc. (the ``Exchange'' or 
``NYSE National'') filed with the Securities and Exchange Commission 
(the ``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 
adopt the same billing dispute practice as the Exchange's affiliates 
and other exchanges. 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 
adopt the same billing dispute practice as the Exchange's affiliates 
and other exchanges. As discussed below, the proposed provision would 
be identical to provision [sic] in the fee schedules of the Exchange's 
affiliates the New York Stock Exchange LLC (``NYSE''), NYSE Arca, Inc. 
(``NYSE Arca''), and NYSE American LLC (``NYSE American'') as well as 
other equities and options exchanges.
Background
    The Exchange proposes to amend its Schedule of Fees and Rebates to 
adopt a billing procedure to prevent ETP Holders from contesting their 
bills long after they have been sent an invoice. The procedure proposed 
by the Exchange is the same as that in place at the Exchange's equities 
and options affiliates \4\ and substantially the same as that in place 
at other equities and options exchanges.\5\
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    \4\ See New York Stock Exchange Price List 2018, available at 
https://www.nyse.com/publicdocs/nyse/markets/nyse/NYSE_Price_List.pdf (``All fee disputes concerning fees billed by 
the Exchange must be submitted to the Exchange in writing and must 
be accompanied by supporting documentation. All fee disputes must be 
submitted no later than sixty (60) days after receipt of a billing 
invoice''); NYSE Arca Equities Fees and Charges, available at 
https://www.nyse.com/publicdocs/nyse/markets/nyse-arca/NYSE_Arca_Marketplace_Fees.pdf (same); NYSE Arca Options Fees and 
Charges, available at https://www.nyse.com/publicdocs/nyse/markets/arca-options/NYSE_Arca_Options_Fee_Schedule.pdf (same); NYSE 
American Equities Price List, available at https://www.nyse.com/publicdocs/nyse/markets/nyse-american/NYSE_America_Equities_Price_List.pdf (same); and NYSE American 
Options Fee Schedule, available at https://www.nyse.com/publicdocs/nyse/markets/american-options/NYSE_American_Options_Fee_Schedule.pdf 
(same).
    \5\ See NASDAQ Equity Rule 7007(b) (All pricing disputes 
concerning fees or rebates, which are listed in paragraph (a), which 
are billed by the Exchange must be submitted to the Exchange in 
writing and must be accompanied by supporting documentation and all 
pricing disputes must be submitted no later than sixty (60) days 
after receipt of a billing invoice); NASDAQ Options Rules, Chapter 
XV, Sect. 7 (same); NASDAQ BX Options Rules, Chapter XV (Options 
Pricing), Sec. 7(b)[sic] (BX Options Fee Disputes) (same); NASDAQ 
PHLX LLC Pricing Schedule, available at https://nasdaqtrader.com/Micro.aspx?id=PHLXPricing (same); NASDAQ ISE Schedule of Fees 
Preface, available at https://ise.cchwallstreet.com/tools/PlatformViewer.asp?selectednode=chp_1_1_1&manual=%2Fcontents%2Fise%2Fise-fee%2F (same); NASDAQ GEMX Schedule of Fees, available at https://nasdaqgemx.cchwallstreet.com/tools/PlatformViewer.asp?selectednode=chp_1_1_1&manual=%2Fcontents%2Fgemx%2Fise-fee-gemx%2F (same); NASDAQ MRX Schedule of Fees, available at 
https://nasdaqmrx.cchwallstreet.com/tools/PlatformViewer.asp?selectednode=chp_1_1_1&manual=%2Fcontents%2Fmrx%2Fise-fee-mrx%2F (same); MIAX Options Fee Schedule, available at 
https://www.miaxoptions.com/sites/default/files/fee_schedule-files/MIAX_Options_Fee_Schedule_08072018.pdf (same); and MIAX Pearl Fee 
Schedule, available at https://www.miaxoptions.com/sites/default/files/fee_schedule-files/MIAX_Options_Fee_Schedule_08072018.pdf 
(same).

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[[Page 53348]]

    As proposed, all fee disputes concerning fees billed by the 
Exchange would have to be submitted to the Exchange in writing and 
accompanied by supporting documentation. Further, all fee disputes 
would have be [sic] submitted no later than sixty (60) days after 
receipt of a billing invoice. After sixty days, all fees assessed by 
the Exchange would be considered final. The Exchange believes that this 
requirement, which is the same as that in place at the Exchange's 
equities and options market affiliates,\6\ will streamline the billing 
dispute process.
---------------------------------------------------------------------------

    \6\ See note 4, supra.
---------------------------------------------------------------------------

    The Exchange believes it is reasonable for ETP Holders to become 
aware of any potential billing errors within sixty calendar days of 
receiving an invoice. Requiring that ETP Holders dispute an invoice 
within this time period will encourage ETP Holders to review their 
invoices promptly so that any disputed charges can be addressed in a 
timely manner while the information and data underlying those charges 
(e.g., applicable fees and order information) is still easily and 
readily available. This practice will avoid issues that may arise when 
ETP Holders do not dispute an invoice in a timely manner, and will 
conserve Exchange resources that would have to be expended to resolve 
untimely billing disputes.\7\
---------------------------------------------------------------------------

    \7\ The same rationale has been advanced by the other markets 
that have adopted the proposed billing procedure. See, e.g., 
Securities Exchange Act Release No. 71286 [sic] (January 14, 2014), 
79 FR 3442, 3442 (January 21, 2014) (SR-ISE-2014-02).
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    In order for ETP Holders to be fully aware of this rule regarding 
fee disputes, the Exchange proposes to include the language proposed 
for the Schedule of Fees and Rebates in each customer invoice.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\8\ in general, and furthers the 
objectives of Sections 6(b)(4) and 6(b)(5) of the Act,\9\ 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, 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.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(4) & (5).
---------------------------------------------------------------------------

    The Exchange believes the requirement to submit all billing 
disputes in writing, and with supporting documentation, within sixty 
days from receipt of the invoice, is reasonable because the Exchange 
provides ample tools to properly and swiftly monitor and account for 
various charges incurred in a given month. Also, the proposal is 
equitable and not unfairly discriminatory because it applies equally to 
all ETP Holders. The proposed provision regarding fee disputes in the 
Schedule of Fees and Rebates promotes the protection of investors and 
the public interest by providing a clear and concise mechanism in 
Exchange Rules for ETP Holders to dispute fees and for the Exchange to 
review such disputes in a timely manner. In addition, the proposed 60-
day limitation is fair and equitable because it will be implemented 
prospectively on all ETP Holders, only applying to invoices issued 
after the proposed rule change becomes operative. Moreover, the 
proposed billing dispute language, which will lower the Exchange's 
administrative burden, is the same as the billing dispute language 
adopted by the NYSE Affiliates as well as other exchanges.\10\
---------------------------------------------------------------------------

    \10\ See notes 4-5, supra.
---------------------------------------------------------------------------

    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,\11\ 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 establish a clear process for billing 
disputes, and is the same as rules adopted by the Exchange's 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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    \11\ 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 \12\ and Rule 19b-4(f)(6) thereunder.\13\ 
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.\14\
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    \12\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \13\ 17 CFR 240.19b-4(f)(6).
    \14\ 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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    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) \15\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \15\ 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

[[Page 53349]]

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-NYSENAT-2018-23 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-2018-23. 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 Number SR-NYSENAT-2018-23 and should be submitted 
on or before November 13, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-22903 Filed 10-19-18; 8:45 am]
 BILLING CODE 8011-01-P
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