Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE American Options Fee Schedule, 16402-16406 [2020-06007]

Download as PDF 16402 Federal Register / Vol. 85, No. 56 / Monday, March 23, 2020 / Notices on its equipment notwithstanding the closure of the Data Center pursuant to Rules 7.1E and 901NY without incurring Hot Hands fees. Accordingly, the Exchange believes that the requested relief is designed to perfect the mechanisms of a free and open market and a national market system and, in general, protect investors and the public interest by facilitating the uninterrupted availability of Users’ equipment. For all of the above 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 will not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. Intramarket Competition The Exchange does not believe that the proposed change would place any burden on intramarket competition that is not necessary or appropriate. The proposal it is not designed to affect competition, but rather to provide relief to Users that, while the Rules 7.1E and 901NY closures are in effect, have no option but to use the Hot Hands service. The proposed waiver would not apply differently to distinct types or sizes of market participants. All Users who use the Hot Hands service from March 16, 2020 through March 29, 2020 would have the resulting fees waived. Intermarket Competition jbell on DSKJLSW7X2PROD with NOTICES The Exchange does not believe that the proposed change would impose any burden on intermarket competition that is not necessary or appropriate. The Exchange believes that the proposed change would not affect the competitive landscape among the national securities exchanges, as the Hot Hands service is solely charged within co-location to existing Users, and would be temporary. For the reasons described above, the Exchange believes that the proposed rule change reflects this competitive environment. 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. 10 15 U.S.C. 78f(b)(8). VerDate Sep<11>2014 17:26 Mar 20, 2020 Jkt 250001 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. 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. 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–NYSEAMER–2020–19 and should be submitted on or before April 13, 2020. 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: For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.14 J. Matthew DeLesDernier, Assistant Secretary. 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– NYSEAMER–2020–19 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–NYSEAMER–2020–19. 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 [FR Doc. 2020–06005 Filed 3–20–20; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–88405; File No. SR– NYSEAMER–2020–16] Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE American Options Fee Schedule March 17, 2020. 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 March 10, 2020, NYSE American LLC (‘‘NYSE American’’ 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. 14 17 11 15 U.S.C. 78s(b)(3)(A). 12 17 CFR 240.19b–4(f)(2). 13 15 U.S.C. 78s(b)(2)(B). PO 00000 Frm 00090 Fmt 4703 Sfmt 4703 CFR 200.30–3(a)(12). U.S.C.78s(b)(1). 2 15 U.S.C. 78a. 3 17 CFR 240.19b–4. 1 15 E:\FR\FM\23MRN1.SGM 23MRN1 Federal Register / Vol. 85, No. 56 / Monday, March 23, 2020 / Notices I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend the NYSE American Options Fee Schedule (‘‘Fee Schedule’’) to raise the existing cap on the available credit for certain Qualified Contingent Cross (‘‘QCC’’) transactions. The Exchange proposes to implement the fee change effective March 10, 2020. The proposed 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 jbell on DSKJLSW7X2PROD with NOTICES The purpose of this filing is to modify the existing cap on the available credit to Floor Brokers that execute a specified number of Qualified Contingent Cross (‘‘QCC’’) transactions. Currently, Floor Brokers earn a credit for executed QCC orders of $0.07 per contact up to 300,000 contracts or $0.10 per contract above 300,000.4 QCC executions in which a Customer or Professional Customer is on both sides of the QCC trade are not eligible for the Floor Broker credit.5 The Exchange currently limits the maximum Floor Broker credit to $375,000 per month per Floor Broker firm.6 The Exchange proposes to increase this limit to $425,000. The Exchange believes the proposed increase would continue to incent ATP Holders acting as Floor 4 See Fee Schedule, Section I.F., QCC Fees & Credits, n. 1, available here, https://www.nyse.com/ publicdocs/nyse/markets/american-options/NYSE_ American_Options_Fee_Schedule.pdf. 5 See id., note 1. 6 See id. (providing that ‘‘[t]he maximum Floor Broker credit paid shall not exceed $375,000 per month per Floor Broker firm’’). VerDate Sep<11>2014 17:26 Mar 20, 2020 Jkt 250001 Brokers to achieve the highest credit possible. The Exchange proposes to implement the fee change effective March 10, 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.’’ 7 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.8 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.9 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, including the credits for QCC transactions provided to ATP Holders acting as Floor Brokers, to encourage such ATP Holders to execute QCCs on the Exchange. As noted above, the Exchange currently limits the maximum Floor Broker rebate for QCCs to $375,000 per month per Floor Broker firm. The Exchange proposes to increase this 7 See Securities Exchange Act Release No. 51808 (June 9, 2005), 70 FR 37496, 37499 (June 29, 2005) (S7–10–04) (‘‘Reg NMS Adopting Release’’). 8 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. 9 Based on OCC data, see id., the Exchange’s market share in equity-based options was 9.82% for the month of January 2019 and 8.08% for the month of January 2020. PO 00000 Frm 00091 Fmt 4703 Sfmt 4703 16403 amount to $425,000.10 The Exchange believes the proposed increase would continue to incent ATP Holders acting as Floor Brokers to achieve the highest rebate possible. Proposed Rule Change Floor Brokers currently earn a rebate for executed QCC orders of $0.07 per contact up to 300,000 contracts or $0.10 per contract above 300,000, provided that a Customer or Professional Customer (collectively, ‘‘Customer’’) is not on both sides of the QCC trade.11 The Exchange currently limits the maximum Floor Broker rebate to $375,000 per month per Floor Broker firm.12 The Exchange proposes to increase this to $425,000. The Exchange’s fees are constrained by intermarket competition, as ATP Holders acting as Floor Brokers may direct their order flow to any of the 16 options exchanges, including those with similar QCC rebate programs and associated caps on same.13 Thus, ATP Holders have a choice of where they direct their order flow. This proposed change—which increases the maximum available credit—is designed to incent ATP Holders acting as Floor Brokers to increase their QCC volumes on the Exchange. The Exchange notes that all market participants stand to benefit from increased volume, which promotes market depth, facilitates tighter spreads and enhances price discovery, and may lead to a corresponding increase in order flow from other market participants. The Exchange cannot predict with certainty whether any ATP Holders acting as Floor Brokers would avail themselves of this proposed fee change. Assuming historical behavior can be predictive of future behavior, the Exchange estimates that at least three firms may benefit from this fee change. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,14 in general, and furthers the objectives of Sections 10 See Fee Schedule, Section I.F., QCC Fees & Credits, n. 1, 11 See id. 12 See id. 13 See, e.g., NASDAQ PHLX, Options 7 Pricing Schedule, Section 4. Multiply Listed Options Fees, QCC Rebate Schedule, available here, https:// nasdaqphlx.cchwallstreet.com/NASDAQPHLX Tools/PlatformViewer.asp? selectednode=chp%5F1%5F1%5F3%5F1&manual= %2Fnasdaqomxphlx%2Fphlx%2Fphlx%2Dll crules%2F (providing that ‘‘[t]he maximum QCC Rebate to be paid in a given month will not exceed $550,000’’). 14 15 U.S.C. 78f(b). E:\FR\FM\23MRN1.SGM 23MRN1 16404 Federal Register / Vol. 85, No. 56 / Monday, March 23, 2020 / Notices 6(b)(4) and (5) of the Act,15 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. jbell on DSKJLSW7X2PROD with NOTICES The Proposed Rule Change is Reasonable The Exchange operates in a highly competitive market. 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.’’ 16 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.17 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.18 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. Stated otherwise, changes to exchange transaction fees and credits can have a direct effect on the ability of an exchange to compete for order flow. The Exchange believes that the proposed modification to increase the allowable cap on the Floor Broker credit for QCC transactions is designed to incent ATP Holders acting as Floor 15 15 U.S.C. 78f(b)(4) and (5). 16 See Reg NMS Adopting Release, supra note 7, at 37499. 17 See supra note 8. 18 Based on OCC data, see supra note 9, the Exchange’s market share in equity-based options was 9.82% for the month of January 2019 and 8.08% for the month of January 2020. VerDate Sep<11>2014 17:26 Mar 20, 2020 Jkt 250001 Brokers to increase the number QCC transactions executed on the Exchange. The proposal caps fees on all similar (QCC) transactions, regardless of size and similarly-situated ATP Holders can opt to try to achieve the modified (and increased) credit. The proposal is designed to encourage ATP Holders acting as Floor Brokers to execute all QCC transactions on Exchange. To the extent that the proposed change attracts more QCC trades to the Exchange Trading Floor, this increased order flow would continue to make the Exchange a more competitive venue for, among other things, order execution, which, in turn, promotes just and equitable principles of trade and removes impediments to and perfects the mechanism of a free and open market and a national market system. Finally, to the extent the proposed change continues to attract greater volume and liquidity (to the Floor or otherwise), the Exchange believes the proposed change would improve the Exchange’s overall competitiveness and strengthen its market quality for all market participants. In the backdrop of the competitive environment in which the Exchange operates, the proposed rule change is a reasonable attempt by the Exchange to increase the depth of its market and improve its market share relative to its competitors. The Exchange’s fees are constrained by intermarket competition, as OTP Holders may direct their order flow to any of the 16 options exchanges, including those with similar QCC credit programs and associated caps on same.19 Thus, ATP Holders have a choice of where they direct their order flow—including their QCC transactions. The proposed rule change is designed to incent OTP Holders to direct liquidity to the Exchange—in particular QCC transactions, thereby promoting market depth, price discovery and improvement and enhancing order execution opportunities for market participants. The Exchange cannot predict with certainty whether any ATP Holders acting as Floor Brokers would avail themselves of this proposed fee change. Assuming historical behavior can be predictive of future behavior, the Exchange estimates that at least three firms may benefit from this fee change. The Proposed Rule Change is an Equitable Allocation of Credits and Fees The Exchange believes the proposed rule change is an equitable allocation of its fees and credits. The proposal is 19 See supra note 13 (regarding NASDAQ PHLX’s $550,000 monthly cap on QCC rebate). PO 00000 Frm 00092 Fmt 4703 Sfmt 4703 based on the amount and type of business transacted on the Exchange and ATP Holders acting as Floor Brokers can opt to avail themselves of the modified cap on QCC transaction credits (i.e., by executing more QCC transactions) or not. As the proposal is designed to encourage Floor Brokers to execute QCC transactions on the Exchange, any resulting increase in order flow would continue to make the Exchange a more competitive venue for order execution. Thus, the Exchange believes the proposed rule change would improve market quality for all market participants on the Exchange and, as a consequence, attract more order flow to the Exchange thereby improving market-wide quality and price discovery. The Proposed Rule Change Is Not Unfairly Discriminatory The Exchange believes it is not unfairly discriminatory to modify the maximum allowable credit on QCC transactions to Floor Brokers because the proposed modification would be available to all similarly-situated market participants on an equal and nondiscriminatory basis. The proposal is based on the amount and type of business transacted on the Exchange and ATP Holders acting as Floor Brokers are not obligated to try to achieve the modified cap. Rather, the proposal is designed encourage ATP Holders acting as Floor Brokers to utilize the Exchange as a primary trading venue for QCC transactions (if they have not done so previously) or increase volume sent to the Exchange. To the extent that the proposed change attracts more QCC transactions to the Exchange, this increased order flow would continue to make the Exchange a more competitive venue for, among other things, order execution. Thus, the Exchange believes the proposed rule change would improve market quality for all market participants on the Exchange and, as a consequence, attract more order flow to the Exchange thereby improving market-wide quality and price discovery. The resulting increased volume and liquidity would provide more trading opportunities and tighter spreads to all market participants and thus would promote just and equitable principles of trade, 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. Finally, the Exchange believes that it is subject to significant competitive forces, as described below in the E:\FR\FM\23MRN1.SGM 23MRN1 Federal Register / Vol. 85, No. 56 / Monday, March 23, 2020 / Notices jbell on DSKJLSW7X2PROD with NOTICES Exchange’s statement regarding the burden on competition. B. Self-Regulatory Organization’s Statement on Burden on Competition In accordance with Section 6(b)(8) of the Act, the Exchange does not believe that the proposed rule change would impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. Instead, as discussed above, the Exchange believes that the proposed changes would encourage the submission of additional liquidity to a public exchange, thereby promoting market depth, price discovery and transparency and enhancing order execution opportunities for all market participants. As a result, the Exchange believes that the proposed change furthers the Commission’s goal in adopting Regulation NMS of fostering integrated competition among orders, which promotes ‘‘more efficient pricing of individual stocks for all types of orders, large and small.’’ 20 Intramarket Competition. The proposed change is designed to attract additional order flow (particularly QCC trades) to the Exchange. The Exchange believes that the proposed increased QCC Floor Broker credit would incent market participants to direct their QCC volume to the Exchange. Greater liquidity benefits all market participants on the Exchange and increased Strategy Executions would increase opportunities for execution of other trading interest. The proposed increased cap would be available to all similarlysituated market participants that execute QCC transactions, and, as such, the proposed change would not impose a disparate burden on competition among market participants on the Exchange. Intermarket Competition. The Exchange operates in a highly competitive market in which market participants can readily favor one of the 16 competing option exchanges if they deem fee levels at a particular venue to be excessive. In such an environment, the Exchange must continually adjust its fees to remain competitive with other exchanges and to attract order flow to the Exchange. Based on publiclyavailable 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.21 Therefore, no exchange possesses significant pricing power in the 20 See Reg NMS Adopting Release, supra note 7, at 37499. 21 See supra note 8. VerDate Sep<11>2014 17:26 Mar 20, 2020 Jkt 250001 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.22 The Exchange believes that the proposed rule change reflects this competitive environment because it modifies the Exchange’s fees in a manner designed to encourage ATP Holders to direct trading interest (particularly QCC transactions) to the Exchange, to provide liquidity and to attract order flow. To the extent that this purpose is achieved, all the Exchange’s market participants should benefit from the improved market quality and increased opportunities for price improvement. The Exchange believes that the proposed change could promote competition between the Exchange and other execution venues, including those that currently offer similar QCC credits and caps thereon, by encouraging additional orders to be sent to the Exchange for execution.23 The Exchange also believes that the proposed change is designed to provide the public and investors with a Fee Schedule that is clear and consistent, thereby reducing burdens on the marketplace and facilitating investor protection. 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) 24 of the Act and subparagraph (f)(2) of Rule 19b–4 25 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 22 Based on OCC data, supra note 9, the Exchange’s market share in equity-based options was 9.82% for the month of January 2019 and 8.08% for the month of January, 2020. 23 See supra note 13. 24 15 U.S.C. 78s(b)(3)(A). 25 17 CFR 240.19b–4(f)(2). PO 00000 Frm 00093 Fmt 4703 Sfmt 4703 16405 the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings under Section 19(b)(2)(B) 26 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 No. SR– NYSEAMER–2020–16 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 No. SR–NYSEAMER–2020–16. 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 26 15 E:\FR\FM\23MRN1.SGM U.S.C. 78s(b)(2)(B). 23MRN1 16406 Federal Register / Vol. 85, No. 56 / Monday, March 23, 2020 / Notices to make available publicly. All submissions should refer to File No. SR–NYSEAMER–2020–16, and should be submitted on or before April 13, 2020. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.27 J. Matthew DeLesDernier, Assistant Secretary. [FR Doc. 2020–06007 Filed 3–20–20; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–88397; File No. SR–NYSE– 2020–18] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change of a Temporary Waiver of the Co-Location Hot Hands Fee March 17, 2020. 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 March 16, 2020, 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. jbell on DSKJLSW7X2PROD with NOTICES I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to a temporary waiver of the co-location ‘‘Hot Hands’’ fee beginning on March 16, 2020 through March 29, 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, and basis for, the proposed rule change 27 17 CFR 200.30–3(a)(12). U.S.C.78s(b)(1). 2 15 U.S.C. 78a. 3 17 CFR 240.19b–4. 1 15 VerDate Sep<11>2014 17:26 Mar 20, 2020 Jkt 250001 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 a temporary suspension of the co-location 4 ‘‘Hot Hands’’ fee beginning on March 16, 2020 through March 29, 2020, after which the Mahwah, New Jersey data center (‘‘Data Center’’) is scheduled to reopen to third parties. The Exchange is an indirect subsidiary of Intercontinental Exchange, Inc. (‘‘ICE’’). Through its ICE Data Services (‘‘IDS’’) business, ICE operates the Data Center, from which the Exchange provides co-location services to Users.5 Among those services is a ‘‘Hot Hands’’ service, which allows Users to use on-site Data Center personnel to maintain User equipment, support network troubleshooting, rack and stack a server in a User’s cabinet; power recycling; and install and document the fitting of cable in a User’s cabinet(s).6 The Hot Hands fee is $100 per half hour. ICE has announced to each User that, starting March 16, 2020, the Data Center will be closed to third parties through March 29, 2020. Pursuant to the ICE contingency plan, the Data Center is 4 The Exchange initially filed rule changes relating to its co-location services with the Securities and Exchange Commission (‘‘Commission’’) in 2010. See Securities Exchange Act Release No. 62960 (September 21, 2010), 75 FR 59310 (September 27, 2010) (SR–NYSE–2010–56). 5 For purposes of the Exchange’s co-location services, a ‘‘User’’ means any market participant that requests to receive co-location services directly from the Exchange. See Securities Exchange Act Release No. 76008 (September 29, 2015), 80 FR 60190 (October 5, 2015) (SR–NYSE–2015–40). As specified in the Price List, a User that incurs colocation fees for a particular co-location service pursuant thereto would not be subject to co-location fees for the same co-location service charged by the Exchange’s affiliates NYSE American LLC (‘‘NYSE American’’), NYSE Arca, Inc. (‘‘NYSE Arca’’), NYSE Chicago, Inc. (‘‘NYSE Chicago’’), and NYSE National, Inc. (‘‘NYSE National’’ and together, the ‘‘Affiliate SROs’’). See Securities Exchange Act Release No. 70206 (August 15, 2013), 78 FR 51765 (August 21, 2013) (SR–NYSE–2013–59). Each Affiliate SRO has submitted substantially the same proposed rule change to propose the changes described herein. See SR–NYSEAmer–2020–19, SR–NYSEArca–2020–22, SR–NYSECHX–2020–07, and SR–NYSENAT–2020–10. 6 See Securities Exchange Act Release No. 72721 (July 30, 2014), 79 FR 45562 (August 5, 2014) (SR– NYSE–2014–37). PO 00000 Frm 00094 Fmt 4703 Sfmt 4703 being closed to third parties to help avoid the spread of COVID–19, which could negatively impact Data Center functions. The Chief Executive Officer of the Exchange has taken the actions required under NYSE Rule 7.1 to close the co-location facility of the Exchange to third parties.7 While the Rule 7.1 closure is in effect, User representatives will not be allowed access to the Data Center. If a User’s equipment requires work while the Rule 7.1 closure is in effect, the User will have no option but to use the Hot Hands service and, absent the proposed waiver, would incur Hot Hands fees for the work. Given that, the Exchange proposes to waive all Hot Hands fees from the date of the closing through March 29, 2020, and to add text to the Hot Hands Fee in the Price List noting the waiver. The Exchange believes that there will be sufficient Data Center staff on-site to comply with User requests for Hot Hands service. The proposed waiver would apply equally to all Users. The proposed fee waiver would not apply differently to distinct types or sizes of market participants. Rather, it would apply uniformly to all Users. The proposed change is not otherwise intended to address any other issues relating to co-location services and/or related fees, and the Exchange is not aware of any problems that Users 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,8 in general, and furthers the objectives of Sections 6(b)(4) and (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. In addition, it is designed to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to, and perfect the mechanisms of, a free and open market and a national market system and, in general, to protect investors and the public interest and because it is not designed to permit unfair 7 See NYSE Rule 7.1(c) through (e). See also NYSE Arca Rules 7.1–E and 7.1–O, NYSE American Rules 7.1E and 901NY, NYSE Chicago Rule 7.1, and NYSE National Rule 7.1. 8 15 U.S.C. 78f(b). 9 15 U.S.C. 78f(b)(4) and (5). E:\FR\FM\23MRN1.SGM 23MRN1

Agencies

[Federal Register Volume 85, Number 56 (Monday, March 23, 2020)]
[Notices]
[Pages 16402-16406]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-06007]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-88405; File No. SR-NYSEAMER-2020-16]


Self-Regulatory Organizations; NYSE American LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Amend the 
NYSE American Options Fee Schedule

March 17, 2020.
    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 March 10, 2020, NYSE American LLC (``NYSE American'' 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.
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    \1\ 15 U.S.C.78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.

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[[Page 16403]]

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend the NYSE American Options Fee 
Schedule (``Fee Schedule'') to raise the existing cap on the available 
credit for certain Qualified Contingent Cross (``QCC'') transactions. 
The Exchange proposes to implement the fee change effective March 10, 
2020. The proposed 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 purpose of this filing is to modify the existing cap on the 
available credit to Floor Brokers that execute a specified number of 
Qualified Contingent Cross (``QCC'') transactions.
    Currently, Floor Brokers earn a credit for executed QCC orders of 
$0.07 per contact up to 300,000 contracts or $0.10 per contract above 
300,000.\4\ QCC executions in which a Customer or Professional Customer 
is on both sides of the QCC trade are not eligible for the Floor Broker 
credit.\5\ The Exchange currently limits the maximum Floor Broker 
credit to $375,000 per month per Floor Broker firm.\6\ The Exchange 
proposes to increase this limit to $425,000. The Exchange believes the 
proposed increase would continue to incent ATP Holders acting as Floor 
Brokers to achieve the highest credit possible.
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    \4\ See Fee Schedule, Section I.F., QCC Fees & Credits, n. 1, 
available here, https://www.nyse.com/publicdocs/nyse/markets/american-options/NYSE_American_Options_Fee_Schedule.pdf.
    \5\ See id., note 1.
    \6\ See id. (providing that ``[t]he maximum Floor Broker credit 
paid shall not exceed $375,000 per month per Floor Broker firm'').
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    The Exchange proposes to implement the fee change effective March 
10, 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.'' \7\
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    \7\ See Securities Exchange Act Release No. 51808 (June 9, 
2005), 70 FR 37496, 37499 (June 29, 2005) (S7-10-04) (``Reg NMS 
Adopting Release'').
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    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.\8\ 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.\9\
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    \8\ 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.
    \9\ Based on OCC data, see id., the Exchange's market share in 
equity-based options was 9.82% for the month of January 2019 and 
8.08% for the month of January 2020.
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    The Exchange believes that the ever-shifting 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, including the credits for QCC transactions 
provided to ATP Holders acting as Floor Brokers, to encourage such ATP 
Holders to execute QCCs on the Exchange.
    As noted above, the Exchange currently limits the maximum Floor 
Broker rebate for QCCs to $375,000 per month per Floor Broker firm. The 
Exchange proposes to increase this amount to $425,000.\10\ The Exchange 
believes the proposed increase would continue to incent ATP Holders 
acting as Floor Brokers to achieve the highest rebate possible.
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    \10\ See Fee Schedule, Section I.F., QCC Fees & Credits, n. 1,
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Proposed Rule Change
    Floor Brokers currently earn a rebate for executed QCC orders of 
$0.07 per contact up to 300,000 contracts or $0.10 per contract above 
300,000, provided that a Customer or Professional Customer 
(collectively, ``Customer'') is not on both sides of the QCC trade.\11\ 
The Exchange currently limits the maximum Floor Broker rebate to 
$375,000 per month per Floor Broker firm.\12\ The Exchange proposes to 
increase this to $425,000.
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    \11\ See id.
    \12\ See id.
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    The Exchange's fees are constrained by intermarket competition, as 
ATP Holders acting as Floor Brokers may direct their order flow to any 
of the 16 options exchanges, including those with similar QCC rebate 
programs and associated caps on same.\13\ Thus, ATP Holders have a 
choice of where they direct their order flow. This proposed change--
which increases the maximum available credit--is designed to incent ATP 
Holders acting as Floor Brokers to increase their QCC volumes on the 
Exchange. The Exchange notes that all market participants stand to 
benefit from increased volume, which promotes market depth, facilitates 
tighter spreads and enhances price discovery, and may lead to a 
corresponding increase in order flow from other market participants.
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    \13\ See, e.g., NASDAQ PHLX, Options 7 Pricing Schedule, Section 
4. Multiply Listed Options Fees, QCC Rebate Schedule, available 
here, https://nasdaqphlx.cchwallstreet.com/NASDAQPHLXTools/PlatformViewer.asp?selectednode=chp%5F1%5F1%5F3%5F1&manual=%2Fnasdaqomxphlx%2Fphlx%2Fphlx%2Dllcrules%2F (providing that ``[t]he maximum 
QCC Rebate to be paid in a given month will not exceed $550,000'').
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    The Exchange cannot predict with certainty whether any ATP Holders 
acting as Floor Brokers would avail themselves of this proposed fee 
change. Assuming historical behavior can be predictive of future 
behavior, the Exchange estimates that at least three firms may benefit 
from this fee change.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\14\ in general, and furthers the 
objectives of Sections

[[Page 16404]]

6(b)(4) and (5) of the Act,\15\ 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.
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    \14\ 15 U.S.C. 78f(b).
    \15\ 15 U.S.C. 78f(b)(4) and (5).
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The Proposed Rule Change is Reasonable
    The Exchange operates in a highly competitive market. 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.'' \16\
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    \16\ See Reg NMS Adopting Release, supra note 7, at 37499.
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    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.\17\ 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.\18\
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    \17\ See supra note 8.
    \18\ Based on OCC data, see supra note 9, the Exchange's market 
share in equity-based options was 9.82% for the month of January 
2019 and 8.08% for the month of January 2020.
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    The Exchange believes that the ever-shifting 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. Stated otherwise, changes 
to exchange transaction fees and credits can have a direct effect on 
the ability of an exchange to compete for order flow.
    The Exchange believes that the proposed modification to increase 
the allowable cap on the Floor Broker credit for QCC transactions is 
designed to incent ATP Holders acting as Floor Brokers to increase the 
number QCC transactions executed on the Exchange. The proposal caps 
fees on all similar (QCC) transactions, regardless of size and 
similarly-situated ATP Holders can opt to try to achieve the modified 
(and increased) credit. The proposal is designed to encourage ATP 
Holders acting as Floor Brokers to execute all QCC transactions on 
Exchange. To the extent that the proposed change attracts more QCC 
trades to the Exchange Trading Floor, this increased order flow would 
continue to make the Exchange a more competitive venue for, among other 
things, order execution, which, in turn, promotes just and equitable 
principles of trade and removes impediments to and perfects the 
mechanism of a free and open market and a national market system.
    Finally, to the extent the proposed change continues to attract 
greater volume and liquidity (to the Floor or otherwise), the Exchange 
believes the proposed change would improve the Exchange's overall 
competitiveness and strengthen its market quality for all market 
participants. In the backdrop of the competitive environment in which 
the Exchange operates, the proposed rule change is a reasonable attempt 
by the Exchange to increase the depth of its market and improve its 
market share relative to its competitors. The Exchange's fees are 
constrained by intermarket competition, as OTP Holders may direct their 
order flow to any of the 16 options exchanges, including those with 
similar QCC credit programs and associated caps on same.\19\ Thus, ATP 
Holders have a choice of where they direct their order flow--including 
their QCC transactions. The proposed rule change is designed to incent 
OTP Holders to direct liquidity to the Exchange--in particular QCC 
transactions, thereby promoting market depth, price discovery and 
improvement and enhancing order execution opportunities for market 
participants.
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    \19\ See supra note 13 (regarding NASDAQ PHLX's $550,000 monthly 
cap on QCC rebate).
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    The Exchange cannot predict with certainty whether any ATP Holders 
acting as Floor Brokers would avail themselves of this proposed fee 
change. Assuming historical behavior can be predictive of future 
behavior, the Exchange estimates that at least three firms may benefit 
from this fee change.
The Proposed Rule Change is an Equitable Allocation of Credits and Fees
    The Exchange believes the proposed rule change is an equitable 
allocation of its fees and credits. The proposal is based on the amount 
and type of business transacted on the Exchange and ATP Holders acting 
as Floor Brokers can opt to avail themselves of the modified cap on QCC 
transaction credits (i.e., by executing more QCC transactions) or not. 
As the proposal is designed to encourage Floor Brokers to execute QCC 
transactions on the Exchange, any resulting increase in order flow 
would continue to make the Exchange a more competitive venue for order 
execution. Thus, the Exchange believes the proposed rule change would 
improve market quality for all market participants on the Exchange and, 
as a consequence, attract more order flow to the Exchange thereby 
improving market-wide quality and price discovery.
The Proposed Rule Change Is Not Unfairly Discriminatory
    The Exchange believes it is not unfairly discriminatory to modify 
the maximum allowable credit on QCC transactions to Floor Brokers 
because the proposed modification would be available to all similarly-
situated market participants on an equal and non-discriminatory basis.
    The proposal is based on the amount and type of business transacted 
on the Exchange and ATP Holders acting as Floor Brokers are not 
obligated to try to achieve the modified cap. Rather, the proposal is 
designed encourage ATP Holders acting as Floor Brokers to utilize the 
Exchange as a primary trading venue for QCC transactions (if they have 
not done so previously) or increase volume sent to the Exchange. To the 
extent that the proposed change attracts more QCC transactions to the 
Exchange, this increased order flow would continue to make the Exchange 
a more competitive venue for, among other things, order execution. 
Thus, the Exchange believes the proposed rule change would improve 
market quality for all market participants on the Exchange and, as a 
consequence, attract more order flow to the Exchange thereby improving 
market-wide quality and price discovery. The resulting increased volume 
and liquidity would provide more trading opportunities and tighter 
spreads to all market participants and thus would promote just and 
equitable principles of trade, 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.
    Finally, the Exchange believes that it is subject to significant 
competitive forces, as described below in the

[[Page 16405]]

Exchange's statement regarding the burden on competition.

B. Self-Regulatory Organization's Statement on Burden on Competition

    In accordance with Section 6(b)(8) of the Act, the Exchange does 
not believe that the proposed rule change would impose any burden on 
competition that is not necessary or appropriate in furtherance of the 
purposes of the Act. Instead, as discussed above, the Exchange believes 
that the proposed changes would encourage the submission of additional 
liquidity to a public exchange, thereby promoting market depth, price 
discovery and transparency and enhancing order execution opportunities 
for all market participants. As a result, the Exchange believes that 
the proposed change furthers the Commission's goal in adopting 
Regulation NMS of fostering integrated competition among orders, which 
promotes ``more efficient pricing of individual stocks for all types of 
orders, large and small.'' \20\
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    \20\ See Reg NMS Adopting Release, supra note 7, at 37499.
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    Intramarket Competition. The proposed change is designed to attract 
additional order flow (particularly QCC trades) to the Exchange. The 
Exchange believes that the proposed increased QCC Floor Broker credit 
would incent market participants to direct their QCC volume to the 
Exchange. Greater liquidity benefits all market participants on the 
Exchange and increased Strategy Executions would increase opportunities 
for execution of other trading interest. The proposed increased cap 
would be available to all similarly-situated market participants that 
execute QCC transactions, and, as such, the proposed change would not 
impose a disparate burden on competition among market participants on 
the Exchange.
    Intermarket Competition. The Exchange operates in a highly 
competitive market in which market participants can readily favor one 
of the 16 competing option exchanges if they deem fee levels at a 
particular venue to be excessive. In such an environment, the Exchange 
must continually adjust its fees to remain competitive with other 
exchanges and to attract order flow to the Exchange. 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.\21\ 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.\22\
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    \21\ See supra note 8.
    \22\ Based on OCC data, supra note 9, the Exchange's market 
share in equity-based options was 9.82% for the month of January 
2019 and 8.08% for the month of January, 2020.
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    The Exchange believes that the proposed rule change reflects this 
competitive environment because it modifies the Exchange's fees in a 
manner designed to encourage ATP Holders to direct trading interest 
(particularly QCC transactions) to the Exchange, to provide liquidity 
and to attract order flow. To the extent that this purpose is achieved, 
all the Exchange's market participants should benefit from the improved 
market quality and increased opportunities for price improvement.
    The Exchange believes that the proposed change could promote 
competition between the Exchange and other execution venues, including 
those that currently offer similar QCC credits and caps thereon, by 
encouraging additional orders to be sent to the Exchange for 
execution.\23\ The Exchange also believes that the proposed change is 
designed to provide the public and investors with a Fee Schedule that 
is clear and consistent, thereby reducing burdens on the marketplace 
and facilitating investor protection.
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    \23\ See supra note 13.
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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 foregoing rule change is effective upon filing pursuant to 
Section 19(b)(3)(A) \24\ of the Act and subparagraph (f)(2) of Rule 
19b-4 \25\ thereunder, because it establishes a due, fee, or other 
charge imposed by the Exchange.
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    \24\ 15 U.S.C. 78s(b)(3)(A).
    \25\ 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) \26\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \26\ 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 No. SR-NYSEAMER-2020-16 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 No. SR-NYSEAMER-2020-16. 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

[[Page 16406]]

to make available publicly. All submissions should refer to File No. 
SR-NYSEAMER-2020-16, and should be submitted on or before April 13, 
2020.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\27\
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    \27\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-06007 Filed 3-20-20; 8:45 am]
BILLING CODE 8011-01-P
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