Self-Regulatory Organizations; NYSE National, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its Schedule of Fees and Rebates, 64904-64906 [2018-27279]
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64904
Federal Register / Vol. 83, No. 242 / Tuesday, December 18, 2018 / Notices
forward for disposition of the LANL
Waste. While the WIPP Facility has
resumed operations, some of the LANL
Waste at the WCS Site cannot be
shipped off the WCS Site at this time
because it does not meet DOT shipping
requirements. WCS has indicated that it
will not be able to ship the LANL Waste
to another appropriate location by the
timeframe specified in the 2014 Order
Condition 8.B.4, as modified by NRC
letter dated September 23, 2016.
The purpose of this EA is to assess the
potential environmental impacts of the
WCS request to modify the 2014 Order
Condition 8.B.4. for the second time to
allow WCS to store the LANL Waste at
specific locations at the WCS Site for
additional two years, until December 23,
2020. This EA does not approve or deny
the requested action.
amozie on DSK3GDR082PROD with NOTICES
Environmental Impacts of the Proposed
Action
The NRC does not expect changes in
radiation hazards to workers or to the
environment. WCS will continue to
ensure that the LANL Waste in both the
FWF disposal cell and the TSDF remain
stored safely and securely, and will
notify the NRC of any events as
appropriate, as set out in the 2014
Order. No changes to its handling or
associated hazards would occur as a
result of granting the requested change.
Other environmental impacts would be
the same as evaluated in the EA that
supported the 2014 Order, as well as the
2001, 2004, and 2009 Orders, as
applicable to the activities associated
with the continued safe storage of the
LANL Waste.
Environmental Impacts of the
Alternatives to the Proposed Action
As an alternative to the proposed
action, the NRC staff could deny the
WCS request and therefore, not issue a
second modification to the Order
Condition 8.B.4. that would authorize
continued storage of the LANL Waste at
the WCS Site (i.e., the ‘‘no action’’
alternative). Upon expiration of the
timeframe in the 2014 Order Condition
8.B.4., as modified by the September 23,
2016 NRC letter to WCS, WCS would
still be required to maintain the material
safely. In addition, the NRC
authorization of any change to the
current storage of the LANL Waste at the
WCS Site would still be required and
WCS has submitted no such proposal to
the NRC. As a result, under this
alternative, there would be no
environmental impacts different from
the proposed action, although WCS
would be required to secure a license or
other regulatory authorization for the
storage of the material or potentially be
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00:45 Dec 18, 2018
Jkt 247001
in violation of 10 CFR part 70 upon the
expiration of the term in the 2014 Order
Condition 8.B.4.
Thus, the ‘‘no action’’ alternative
would not result in changes to the
environmental impacts evaluated in the
NRC’s prior EAs that supported the
2014 Order or the previous NRC orders.
Those prior EAs concluded that there
would be no significant radiological or
non-radiological environmental impacts
associated with the storage of SNM at
the WCS Site, consistent with the
conditions in those NRC Orders.
Agencies and Persons Consulted
On December 3, 2018, the staff
consulted with TCEQ by providing a
draft of the EA for review and comment.
By letter dated December 7, 2018
(ADAMS Accession No. ML18344A091),
TCEQ provided comments on and
recommended corrections to the draft
EA. The NRC staff modified the EA to
appropriately address the TCEQ
comments and recommended
corrections.
The proposed action does not involve
the development or disturbance of
additional land. Hence, the NRC has
determined that the proposed action
will not affect listed endangered or
threatened species or their critical
habitat. Therefore, no further
consultation is required under Section 7
of the Endangered Species Act.
Likewise, the NRC staff has determined
that the proposed action does not have
the potential to adversely affect cultural
resources because no ground disturbing
activities are associated with the
proposed action. Therefore, no
consultation is required under Section
106 of the National Historic
Preservation Act.
III. Finding of No Significant Impact
The NRC has reviewed the WCS
August 30, 2018, request to supplement
the 2014 Order again to extend the
possession time of the LANL Waste at
specific locations at the WCS Site. The
NRC has found that effluent releases
and potential radiological doses to the
public are not anticipated to change as
a result of this action and that
occupational exposures are expected to
remain within regulatory limits and as
low as reasonably achievable. On the
basis of this environmental assessment,
the NRC concludes that the proposed
action will not have a significant effect
on the quality of the human
environment. Accordingly, the NRC has
determined not to prepare an
environmental impact statement for the
proposed action.
Dated at Rockville, Maryland, this 12th day
of December 2018.
PO 00000
Frm 00096
Fmt 4703
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For the Nuclear Regulatory Commission.
John R. Tappert,
Director, Division of Decommissioning,
Uranium Recovery, and Waste Programs,
Office of Nuclear Material Safety and
Safeguards.
[FR Doc. 2018–27323 Filed 12–17–18; 8:45 am]
BILLING CODE 7590–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–84805; File No. SR–
NYSENAT–2018–25]
Self-Regulatory Organizations; NYSE
National, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Its Schedule of
Fees and Rebates
December 12, 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
November 30, 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, 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
Schedule of Fees and Rebates to adopt
a new Step Up Adding Tier that would
set forth fees for displayed and nondisplayed orders that add liquidity to
the Exchange. The Exchange proposes to
implement the rule change on December
3, 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
1 15
U.S.C.78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
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Federal Register / Vol. 83, No. 242 / Tuesday, December 18, 2018 / Notices
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.
any problems that ETP Holders would
have in complying with the proposed
change.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,6 in general, and
furthers the objectives of Sections
6(b)(4) and 6(b)(5) of the Act,7 in
particular, because it provides for the
equitable allocation of reasonable dues,
fees, and other charges among its
members, issuers and other persons
using its facilities and does not unfairly
discriminate between customers,
issuers, brokers or dealers.
The Exchange believes that the
proposed Step Up Adding Tier fees for
ETP Holders with 0.04% or more
Adding average daily volume as a
percentage of US CADV in addition to
the ETP Holder’s Adding ADV as a
percentage of US CADV in November
2018 is reasonable because the proposed
tier would further contribute to
incentivizing ETP Holders to bring
additional order flow to a public market.
In particular, the Exchange believes that
the tiered rates will provide an
incentive for more active ETP Holders
that do not meet the qualification for
Adding Tiers 2, 3 and 4, which offer
lower fees for adding liquidity, to add
displayed liquidity to the Exchange, to
the benefit of the investing public and
all market participants. In addition, the
Exchange believes that the proposed
Step Up Adding Tier fees are equitable
and not unfairly discriminatory because
all similarly situated market
participants who would submit
additional liquidity to the Exchange in
order to qualify for the fees would be
subject to the same fees on an equal and
non-discriminatory basis. The Exchange
also believes that the proposed nonsubstantive changes would not be
inconsistent with the public interest and
the protection of investors because
investors will not be harmed and in fact
would benefit from increased clarity
and transparency, thereby reducing
potential confusion.
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.
1. Purpose
The Exchange proposes to amend its
Schedule of Fees and Rebates to adopt
a new Step Up Adding Tier that would
set forth fees for displayed and nondisplayed orders that add liquidity to
the Exchange.
The Exchange proposes to implement
the rule change on December 3, 2018.
Proposed Step Up Adding Tier
amozie on DSK3GDR082PROD with NOTICES
The Exchange proposes a new Step
Adding Tier for displayed and nondisplayed orders in securities priced at
or above $1.00.
Under the proposed Step Up Adding
Tier, the Exchange would offer the
following fees for transactions in stocks
with a per share price of $1.00 or more
when adding liquidity to the Exchange
if the ETP Holder has 0.04% or more of
Adding ADV as a percent of US CADV
over the ETP Holder’s Adding ADV as
a % of US CADV in November 2018:
• $0.0015 per share for adding
displayed orders;
• $0.0015 per share for orders that set
a new Exchange BBO; 4
• $0.0017 per share for adding nondisplayed orders; and
• $0.0005 per share for MPL orders.
For example, in a given month of 20
trading days, assume that an ETP Holder
adds liquidity of an ADV of 3.5 million
shares in a month where CADV is 7
billion shares, or 0.05% of US CADV in
November 2018 (the ‘‘Baseline’’).5
Further assume that the ETP Holder
adds liquidity of an ADV of 7 million
shares in the relevant billing month, or
0.10% of US CADV. That ETP Holder
would qualify for the proposed Step Up
Adding Tier based on their 0.05% step
up as a percent of US CADV over the
ETP Holder’s Baseline.
The proposed changes are not
otherwise intended to address any other
issues, and the Exchange is not aware of
4 The term ‘‘BBO’’ is defined in Rule 1.1 to mean
the best bid or offer that is a Protected Quotation
on the Exchange. The term ‘‘BB’’ means the best bid
that is a Protected Quotation on the Exchange and
the term ‘‘BO’’ means the best offer that is a
Protected Quotation on the Exchange.
5 The Exchange also proposes non-substantive
changes to Adding Tier 1 to change the ‘‘m’’ in
‘‘More’’ to lower case and to Adding Tiers 2, 3 and
4 to remove superfluous commas following the
word ‘‘share’’ in the adding MPL fee.
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00:45 Dec 18, 2018
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2. Statutory Basis
6 15
7 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(4) & (5).
Frm 00097
Fmt 4703
B. Self-Regulatory Organization’s
Statement on Burden on Competition
In accordance with Section 6(b)(8) of
the Act,8 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
changes would encourage the
submission of additional liquidity to a
public exchange, thereby promoting
price discovery and transparency and
enhancing order execution
opportunities for ETP Holders. The
Exchange believes that this could
promote competition between the
Exchange and other execution venues,
including those that currently offer
similar order types and comparable
transaction pricing, by encouraging
additional orders to be sent to the
Exchange for execution. The Exchange
also believes that the proposed rule is
designed to provide the public and
investors with a Schedule of Fees and
Rebates that is clear and consistent,
thereby reducing burdens on the
marketplace and facilitating investor
protection.
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 ETP Holders or
competing order execution venues to
maintain their competitive standing in
the financial markets.
8 15
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E:\FR\FM\18DEN1.SGM
U.S.C. 78f(b)(8).
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Federal Register / Vol. 83, No. 242 / Tuesday, December 18, 2018 / Notices
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) 9 of the Act and
subparagraph (f)(2) of Rule 19b–4 10
thereunder, because it establishes a due,
fee, or other charge imposed by the
Exchange.
At any time within 60 days of the
filing of such proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
under Section 19(b)(2)(B) 11 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:
amozie on DSK3GDR082PROD with NOTICES
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
Number SR–NYSENAT–2018–25 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–2018–25. 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
9 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
11 15 U.S.C. 78s(b)(2)(B).
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–2018–25
and should be submitted on or before
January 8, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2018–27279 Filed 12–17–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Submission for OMB Review;
Comment Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
Extension:
Order Granting a Conditional Exemption
under the Securities Exchange Act of
1934 from the Confirmation
Requirements of Exchange Act Rule 10b–
10(a) for Certain Transactions in Money
Market Funds, SEC File No. 270–792;
OMB Control No. 3235–0739
Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
Securities and Exchange Commission
10 17
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00:45 Dec 18, 2018
12 17
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PO 00000
CFR 200.30–3(a)(12).
Frm 00098
Fmt 4703
Sfmt 4703
(‘‘Commission’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for approval of
extension of the existing collection of
information provided for in the
following: Order Granting a Conditional
Exemption under the Securities
Exchange Act of 1934 from the
Confirmation Requirements of Exchange
Act Rule 10b–10(a) for Certain
Transactions in Money Market Funds
(17 CFR 240.10b–10(a)).
Rule 10b–10 under the Securities
Exchange Act of 1934 (15 U.S.C. 78a et
seq.) generally requires broker-dealers to
provide customers with specified
information relating to their securities
transactions at or before the completion
of the transactions. Rule 10b–10(b),
however, provides an exception from
this requirement for certain transactions
in money market funds that attempt to
maintain a stable net asset value when
no sales load or redemption fee is
charged. The exception permits brokerdealers to provide transaction
information to money market fund
shareholders on a monthly, rather than
immediate, basis, subject to the
conditions. Amendments to Rule 2a–7
of the Investment Company Act of 1940
(‘‘Investment Company Act’’) (15 U.S.C.
80a–1 et seq.) among other things,
means, absent an exemption, brokerdealers would not be able to continue to
rely on the exception under Exchange
Act Rule 10b–10(b) for transactions in
money market funds operating in
accordance with Rule 2a–7(c)(1)(ii).1
In 2015, the Commission issued an
Order Granting a Conditional
Exemption under the Securities
Exchange Act of 1934 From The
Confirmation Requirements of Exchange
Act Rule 10b–10(a) For Certain
Transactions In Money Market Funds
(‘‘Order’’) 2 which allows broker-dealers,
subject to certain conditions, to provide
transaction information to investors in
any money market fund operating
pursuant to Rule 2a–7(c)(1)(ii) on a
monthly basis in lieu of providing
immediate confirmations as required
under Exchange Act Rule 10b–10(a)
(‘‘the Exemption’’). Accordingly, to be
1 See generally Money Market Fund Reform;
Amendments to Form PF, Securities Act Release
No. 9408, Investment Advisers Act Release No.
3616, Investment Company Act Release No. 30551
(June 5, 2013), 78 FR 36834, 36934 (June 19, 2013);
see also Exchange Act Rule 10b–10(b)(1), 17 CFR
240.10b–10(b)(1) (limiting alternative monthly
reporting to money market funds that attempt to
maintain a stable NAV).
2 See Order Granting a Conditional Exemption
Under the Securities Exchange Act of 1934 From
the Confirmation Requirements of Exchange Act
Rule 10b–10(a) for Certain Transactions in Money
Market Funds, Exchange Act Release No. 34–76480
(Nov. 19, 2015), 80 FR 73849 (Nov. 25, 2015).
E:\FR\FM\18DEN1.SGM
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]]>Agencies
[Federal Register Volume 83, Number 242 (Tuesday, December 18, 2018)]
[Notices]
[Pages 64904-64906]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-27279]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-84805; File No. SR-NYSENAT-2018-25]
Self-Regulatory Organizations; NYSE National, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its
Schedule of Fees and Rebates
December 12, 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 November 30, 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,
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 Schedule of Fees and Rebates to
adopt a new Step Up Adding Tier that would set forth fees for displayed
and non-displayed orders that add liquidity to the Exchange. The
Exchange proposes to implement the rule change on December 3, 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
[[Page 64905]]
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 a new Step Up Adding Tier that would set forth fees for displayed
and non-displayed orders that add liquidity to the Exchange.
The Exchange proposes to implement the rule change on December 3,
2018.
Proposed Step Up Adding Tier
The Exchange proposes a new Step Adding Tier for displayed and non-
displayed orders in securities priced at or above $1.00.
Under the proposed Step Up Adding Tier, the Exchange would offer
the following fees for transactions in stocks with a per share price of
$1.00 or more when adding liquidity to the Exchange if the ETP Holder
has 0.04% or more of Adding ADV as a percent of US CADV over the ETP
Holder's Adding ADV as a % of US CADV in November 2018:
$0.0015 per share for adding displayed orders;
$0.0015 per share for orders that set a new Exchange BBO;
\4\
---------------------------------------------------------------------------
\4\ The term ``BBO'' is defined in Rule 1.1 to mean the best bid
or offer that is a Protected Quotation on the Exchange. The term
``BB'' means the best bid that is a Protected Quotation on the
Exchange and the term ``BO'' means the best offer that is a
Protected Quotation on the Exchange.
---------------------------------------------------------------------------
$0.0017 per share for adding non-displayed orders; and
$0.0005 per share for MPL orders.
For example, in a given month of 20 trading days, assume that an
ETP Holder adds liquidity of an ADV of 3.5 million shares in a month
where CADV is 7 billion shares, or 0.05% of US CADV in November 2018
(the ``Baseline'').\5\ Further assume that the ETP Holder adds
liquidity of an ADV of 7 million shares in the relevant billing month,
or 0.10% of US CADV. That ETP Holder would qualify for the proposed
Step Up Adding Tier based on their 0.05% step up as a percent of US
CADV over the ETP Holder's Baseline.
---------------------------------------------------------------------------
\5\ The Exchange also proposes non-substantive changes to Adding
Tier 1 to change the ``m'' in ``More'' to lower case and to Adding
Tiers 2, 3 and 4 to remove superfluous commas following the word
``share'' in the adding MPL fee.
---------------------------------------------------------------------------
The proposed changes are not otherwise intended to address any
other issues, and the Exchange is not aware of any problems that ETP
Holders would have in complying with the proposed change.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\6\ in general, and furthers the
objectives of Sections 6(b)(4) and 6(b)(5) of the Act,\7\ 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.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(4) & (5).
---------------------------------------------------------------------------
The Exchange believes that the proposed Step Up Adding Tier fees
for ETP Holders with 0.04% or more Adding average daily volume as a
percentage of US CADV in addition to the ETP Holder's Adding ADV as a
percentage of US CADV in November 2018 is reasonable because the
proposed tier would further contribute to incentivizing ETP Holders to
bring additional order flow to a public market. In particular, the
Exchange believes that the tiered rates will provide an incentive for
more active ETP Holders that do not meet the qualification for Adding
Tiers 2, 3 and 4, which offer lower fees for adding liquidity, to add
displayed liquidity to the Exchange, to the benefit of the investing
public and all market participants. In addition, the Exchange believes
that the proposed Step Up Adding Tier fees are equitable and not
unfairly discriminatory because all similarly situated market
participants who would submit additional liquidity to the Exchange in
order to qualify for the fees would be subject to the same fees on an
equal and non-discriminatory basis. The Exchange also believes that the
proposed non-substantive changes would not be inconsistent with the
public interest and the protection of investors because investors will
not be harmed and in fact would benefit from increased clarity and
transparency, thereby reducing potential confusion.
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,\8\ 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
changes would encourage the submission of additional liquidity to a
public exchange, thereby promoting price discovery and transparency and
enhancing order execution opportunities for ETP Holders. The Exchange
believes that this could promote competition between the Exchange and
other execution venues, including those that currently offer similar
order types and comparable transaction pricing, by encouraging
additional orders to be sent to the Exchange for execution. The
Exchange also believes that the proposed rule is designed to provide
the public and investors with a Schedule of Fees and Rebates that is
clear and consistent, thereby reducing burdens on the marketplace and
facilitating investor protection.
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\8\ 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 ETP Holders or competing order execution venues to maintain
their competitive standing in the financial markets.
[[Page 64906]]
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) \9\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \10\ thereunder, because it establishes a due, fee, or other charge
imposed by the Exchange.
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 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) \11\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\11\ 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 rule-comments@sec.gov. Please include
File Number SR-NYSENAT-2018-25 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-2018-25. 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-2018-25 and should
be submitted on or before January 8, 2019.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2018-27279 Filed 12-17-18; 8:45 am]
BILLING CODE 8011-01-P
