Board of Governors; Sunshine Act Meeting, 14715-14716 [2020-05279]
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Federal Register / Vol. 85, No. 50 / Friday, March 13, 2020 / Notices
The Commission is
establishing a docket to solicit
comments for the purpose of developing
its views on whether certain proposals
for the upcoming UPU Congress are
consistent with the standards and
criteria for modern rate regulation
established by the Commission under
applicable sections of the United States
Code. This notice informs the public of
the filing, invites public comment, and
takes other administrative steps.
SUMMARY:
DATES:
Comments are due: June 12,
2020.
Submit comments
electronically via the Commission’s
Filing Online system at https://
www.prc.gov. Those who cannot submit
comments electronically should contact
the person identified in the FOR FURTHER
INFORMATION CONTACT section by
telephone for advice on filing
alternatives.
ADDRESSES:
FOR FURTHER INFORMATION CONTACT:
David A. Trissell, General Counsel, at
202–789–6820.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
II. Initial Commission Action
III. Ordering Paragraphs
jbell on DSKJLSW7X2PROD with NOTICES
I. Introduction
The 27th Universal Postal Union
(UPU) Congress will take place August
10–28, 2020, in Coˆte d’Ivoire. Before the
United States concludes any treaty,
convention, or amendment that
establishes a Market Dominant rate or
classification, the Secretary of State
must request that the Commission
provide views on whether such treaties,
conventions, or amendments are
consistent with the standards and
criteria for modern rate regulation
established by the Commission under 39
U.S.C. 3622. 39 U.S.C. 407(c). On March
6, 2020, the Department of State
requested the Commission’s views on
relevant proposals that will be
presented at the 27th UPU Congress.1
Pursuant to section 407(c)(1) and 39
CFR part 3017, the Commission
establishes Docket No. IM2020–1 for the
purpose of developing its views on
whether certain proposals for the
upcoming UPU Congress are consistent
with the standards and criteria for
modern rate regulation established by
the Commission under 39 U.S.C. 3622.
1 Letter from Nerissa J. Cook, Deputy Assistant
Secretary, U.S. Department of State, Bureau of
International Organization Affairs, March 6, 2020
(State’s Request).
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II. Initial Commission Action
Establishment of docket. Part 3017 of
title 39 of the Code of Federal
Regulations codifies procedures related
to the development of the Commission’s
section 407 views.2 Pursuant to rule
3017.3(a), the Commission establishes
this docket to ‘‘solicit comments on the
general principles that should guide the
Commission’s development of views on
relevant proposals, in a general way,
and on specific relevant proposals[.]’’ 39
CFR 3017.3(a).
Comments. Rule 3017.4(a) provides
that the Commission ‘‘shall establish a
deadline for comments upon
establishment of the docket that is
consistent with timely submission of the
Commission’s views to the Secretary of
State.’’ 39 CFR 3017.4(a). The 27th
Universal Postal Union Congress will
take place August 10–28, 2020, in Coˆte
d’Ivoire. The Department of State
requests that the Commission submit its
views by July 10, 2020. State’s Request
at 1. To ensure timely submission of the
Commission’s views to the Department
of State, the Commission establishes
June 12, 2020, as the deadline for
submission of comments on the
principles that should guide
development of its views, as well as
those on the consistency of proposals
subject to subchapter I of chapter 36
with the standards and criteria of 39
U.S.C. 3622. Comments are to be
submitted in the above captioned docket
via the Commission’s website at https://
www.prc.gov unless a request for waiver
is approved. For assistance with filing,
contact the Commission’s docket section
at 202–789–6846 or dockets@prc.gov.
Public Representative. Section 505 of
title 39 requires the designation of an
officer of the Commission (Public
Representative) to represent the
interests of the general public in all
public proceedings. The Commission
designates Kenneth E. Richardson as
2 See
Docket No. RM2015–14, Order Adopting
Final Rules on Procedures Related to Commission
Views, December 30, 2015 (Order No. 2960). See
also 81 FR 869 (January 8, 2016). The rules in part
3017 took effect on February 8, 2016. The
Commission recently revised these rules to enhance
transparency and accountability within the
Commission view process and improve public
accessibility to related documents. Docket No.
RM2020–3, Order Adopting Final Rules Related to
Commission Views, February 24, 2020, at 1–2
(Order No. 5439). These revised rules go into effect
on April 21, 2020. Order No. 5439 at 5. In addition,
the Commission recently issued a final rulemaking
in a separate proceeding that, among other things,
renumbered several parts in title 39. Docket No.
RM2019–13, Order Reorganizing Commission
Regulations and Amending Rules of Practice,
January 16, 2020 (Order No. 5407). As a result of
Order No. 5407, part 3017 will be redesignated as
part 3025 and the rules will be renumbered on
April 20, 2020. Id.; Order No. 5439 at 4–5.
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14715
Public Representative in this
proceeding.
Availability of documents. Pursuant
to rule 3017.3(b), the Commission will
post relevant proposals and other
materials related to the development of
Commission views in this docket.
Federal Register publication. Rule
3017.3(c) requires publication in the
Federal Register of the notice
establishing a docket authorized under
part 3017. 39 CFR 3017.3(c). Pursuant to
this rule, the Commission directs the
Secretary of the Commission to arrange
for prompt publication of this Order in
the Federal Register.
III. Ordering Paragraphs
It is ordered:
1. The Commission establishes Docket
No. IM2020–1 for purposes related to
the development of section 407(c)(1)
views and invites public comments
related to this effort, as described in the
body of this Order.
2. Comments are due no later than
June 12, 2020.
3. Pursuant to 39 U.S.C. 505, Kenneth
E. Richardson is appointed to serve as
an officer of the Commission (Public
Representative) to represent the
interests of the general public in this
docket.
4. The Secretary is directed to post
documents in this docket when the
Commission determines such
documents are relevant.
5. The Secretary shall arrange for
publication of this Order in the Federal
Register.
By the Commission.
Erica A. Barker,
Secretary.
[FR Doc. 2020–05114 Filed 3–12–20; 8:45 am]
BILLING CODE 7710–FW–P
POSTAL SERVICE
Board of Governors; Sunshine Act
Meeting
Monday, March 9, 2020,
at 1:15 p.m.
PLACE: Washington, DC.
STATUS: Closed.
MATTERS TO BE CONSIDERED: Monday,
March 9, 2020, at 1:15 p.m.
1. Strategic Issues.
2. Administrative Items.
On March 9, 2020, a majority of the
members of the Board of Governors of
the United States Postal Service voted
unanimously to hold and to close to
public observation a special meeting in
Washington, DC. The Board determined
that no earlier public notice was
practicable.
TIME AND DATE:
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Federal Register / Vol. 85, No. 50 / Friday, March 13, 2020 / Notices
General Counsel Certification: The
General Counsel of the United States
Postal Service has certified that the
meeting may be closed under the
Government in the Sunshine Act.
CONTACT PERSON FOR MORE INFORMATION:
Michael J. Elston, Secretary of the
Board, U.S. Postal Service, 475 L’Enfant
Plaza SW, Washington, DC 20260–1000.
Telephone: (202) 268–4800.
Michael J. Elston,
Secretary.
[FR Doc. 2020–05279 Filed 3–11–20; 11:15 am]
BILLING CODE 7710–12–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–88345; File No. SR–
NYSEArca–2020–18]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Modify the NYSE Arca
Options Fee Schedule
March 9, 2020.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on March 2,
2020, NYSE Arca, Inc. (‘‘NYSE Arca’’ or
‘‘Exchange’’) 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 self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
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I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to modify the
NYSE Arca Options Fee Schedule (‘‘Fee
Schedule’’). The Exchange proposes to
implement the fee change effective
March 2, 2020. 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,
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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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
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this filing is to amend
the Fee Schedule to modify the Limit of
Fees on Options Strategy Executions
(‘‘Strategy Cap’’), as set forth below.
Currently, the Fee Schedule provides
that transaction fees for OTP Holders
and OTP Firms (collectively, ‘‘OTP
Holders’’) are limited or capped at $700
for certain options strategy executions
‘‘on the same trading day in the same
option class’’ and such fees are further
capped at $25,000 per month per
initiating firm.3 Strategy executions that
qualify for the Strategy Cap are (a)
reversals and conversions, (b) box
spreads, (c) short stock interest spreads,
(d) merger spreads, and (e) jelly rolls,
which are described in detail in the Fee
Schedule (the ‘‘Strategy Executions’’).4
The Exchange proposes to increase
the daily Strategy Cap from $700 to
$1,000 and to include in the Cap all
Strategy Executions traded in the same
day (i.e., to eliminate the Cap
requirement that strategies be in the
same option class). In connection with
this change, the Exchange proposes to
eliminate the $25,000 monthly Strategy
Cap. The Exchange believes that the
proposed Strategy Cap would encourage
OTP Holders to execute more Strategy
Executions, particularly those that
would not individually qualify for
inclusion in the Cap because of the
current per-symbol limitation, as such
strategies would become more
economically feasible (and thus more
attractive), when combined under the
proposed Cap with all of an OTP
Holder’s Strategy Executions on the
same trading day.
The Exchange also proposes to
exclude from the cap any qualifying
Strategy Execution executed as a QCC
order, as QCC transactions for NonCustomers are eligible for other Fee Cap
3 See Fee Schedule, NYSE Arca OPTIONS:
TRADE–RELATED CHARGES FOR STANDARD
OPTIONS, LIMIT OF FEES ON OPTIONS
STRATEGY EXECUTIONS, available here: https://
www.nyse.com/publicdocs/nyse/markets/arcaoptions/NYSE_Arca_Options_Fee_Schedule.pdf.
4 See id., at Endnote 10 (describing the Strategy
Executions).
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programs, and eligible for credits for a
Floor Broker executing a QCC (see infra
note 10).
The Exchange proposes to implement
the rule change on March 2, 2020.
Background
The Commission has repeatedly
expressed its preference for competition
over regulatory intervention in
determining prices, products, and
services in the securities markets. In
Regulation NMS, the Commission
highlighted the importance of market
forces in determining prices and SRO
revenues and, also, recognized that
current regulation of the market system
‘‘has been remarkably successful in
promoting market competition in its
broader forms that are most important to
investors and listed companies.’’ 5
There are currently 16 registered
options exchanges competing for order
flow. Based on publicly-available
information, and excluding index-based
options, no single exchange has more
than 16% of the market share of
executed volume of multiply-listed
equity and ETF options trades.6
Therefore, no exchange possesses
significant pricing power in the
execution of multiply-listed equity &
ETF options order flow. More
specifically, in the fourth quarter of
2019, the Exchange had less than 10%
market share of executed volume of
multiply-listed equity & ETF options
trades.7
The Exchange believes that the evershifting market share among the
exchanges from month to month
demonstrates that market participants
can shift order flow or discontinue or
reduce use of certain categories of
products, in response to fee changes.
Accordingly, competitive forces
constrain options exchange transaction
fees.
In response to this competitive
environment, the Exchange has
established incentives, such as the
Strategy Cap, to encourage OTP Holders
to participate in certain large volume
options strategies that capture
potentially small profits by capping the
fees paid for such transactions.
As noted above, the current Strategy
Cap limits or caps at $700 transaction
fees for options Strategy Executions ‘‘on
5 See Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005)
(S7–10–04) (‘‘Reg NMS Adopting Release’’).
6 The OCC publishes options and futures volume
in a variety of formats, including daily and monthly
volume by exchange, available here: https://
www.theocc.com/market-data/volume/default.jsp.
7 Based on OCC data, see id., the Exchange’s
market share in equity-based options was 9.57% for
the month of January 2019 and 9.59% for the month
of January 2020.
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[Federal Register Volume 85, Number 50 (Friday, March 13, 2020)]
[Notices]
[Pages 14715-14716]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-05279]
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POSTAL SERVICE
Board of Governors; Sunshine Act Meeting
TIME AND DATE: Monday, March 9, 2020, at 1:15 p.m.
PLACE: Washington, DC.
STATUS: Closed.
MATTERS TO BE CONSIDERED: Monday, March 9, 2020, at 1:15 p.m.
1. Strategic Issues.
2. Administrative Items.
On March 9, 2020, a majority of the members of the Board of
Governors of the United States Postal Service voted unanimously to hold
and to close to public observation a special meeting in Washington, DC.
The Board determined that no earlier public notice was practicable.
[[Page 14716]]
General Counsel Certification: The General Counsel of the United
States Postal Service has certified that the meeting may be closed
under the Government in the Sunshine Act.
CONTACT PERSON FOR MORE INFORMATION: Michael J. Elston, Secretary of
the Board, U.S. Postal Service, 475 L'Enfant Plaza SW, Washington, DC
20260-1000. Telephone: (202) 268-4800.
Michael J. Elston,
Secretary.
[FR Doc. 2020-05279 Filed 3-11-20; 11:15 am]
BILLING CODE 7710-12-P
