Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Change To Modify the NYSE American Options Fee Schedule, 20799-20803 [2020-07773]

Download as PDF Federal Register / Vol. 85, No. 72 / Tuesday, April 14, 2020 / Notices and the public interest by providing additional specificity, clarity, and transparency in the Exchange’s rules. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed change is not designed to address any competitive issue, but rather would provide the public and market participants with up-to-date information about the data feeds the Exchange will use for the handling, execution, and routing of orders, as well as for regulatory compliance. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 7 and Rule 19b–4(f)(6) thereunder.8 Because the proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative prior to 30 days from the date on which it was filed, or such shorter time as the Commission may designate, if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b–4(f)(6)(iii) thereunder.9 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 7 15 U.S.C. 78s(b)(3)(A)(iii). CFR 240.19b–4(f)(6). 9 Id. In addition, Rule 19b–4(f)(6)(iii) requires a self-regulatory organization to give the Commission written notice of its intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement. jbell on DSKJLSW7X2PROD with NOTICES 8 17 VerDate Sep<11>2014 18:26 Apr 13, 2020 Jkt 250001 Commission shall institute proceedings under Section 19(b)(2)(B) 10 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: 20799 Number SR–NYSE–2020–31 and should be submitted on or before May 5, 2020. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.11 J. Matthew DeLesDernier, Assistant Secretary. [FR Doc. 2020–07778 Filed 4–13–20; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION Electronic Comments [Release No. 34–88594; File No. SR– NYSEAMER–2020–26] • Use the Commission’s internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number SR– NYSE–2020–31 on the subject line. Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Change To Modify the NYSE American Options Fee Schedule April 8, 2020. 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–NYSE–2020–31. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s internet website (https://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website viewing and printing in the Commission’s Public Reference Room, 100 F Street NE, Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File 10 15 PO 00000 U.S.C. 78s(b)(2)(B). Frm 00138 Fmt 4703 Sfmt 4703 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 April 1, 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. 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 April 1, 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 11 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 E:\FR\FM\14APN1.SGM 14APN1 20800 Federal Register / Vol. 85, No. 72 / Tuesday, April 14, 2020 / Notices 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 jbell on DSKJLSW7X2PROD with NOTICES 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. Since March 9, 2020, markets worldwide have been experiencing unprecedented market-wide declines and volatility that has resulted from the ongoing spread of the novel COVID–19 virus. In addition, beginning March 16, 2020, to slow the spread of COVID–19 through social-distancing measures, significant limitations have been placed on large gatherings throughout the country.4 Shortly thereafter, U.S. options exchanges that operate physical trading floors, such as Cboe, Inc. and NASDAQ PHLX, announced the temporarily closure of such floors as a precautionary measure to prevent the potential spread of COVID–19. The Exchange likewise announced the temporarily closure of the Trading Floor, effective March 23, 2020, which meant that Exchange Floor Brokers could not engage in open outcry trading. Following the floor closures, including the Exchange’s Trading Floor, the Exchange has experienced an increase in QCC volume. 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 300,000.5 The Exchange currently limits the maximum Floor Broker credit to $425,000 per month per Floor Broker firm (the ‘‘Cap’’).6 Given the unanticipated surge in QCC volume that has resulted from the 4 For example, in New York City, which is where the NYSE Trading Floor is located, public and private schools, universities, churches, restaurants, bars, movie theaters, and other commercial establishments where large crowds can gather have been closed. 5 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. 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. 6 See id. (providing that ‘‘[t]he maximum Floor Broker credit paid shall not exceed $425,000 per month per Floor Broker firm’’). VerDate Sep<11>2014 18:26 Apr 13, 2020 Jkt 250001 unprecedented temporary closure of the Trading Floor, the Exchange proposes to increase the Cap solely for the month of April 2020. Specifically, the Exchange proposes that the Cap would remain at $425,000, except that for the month of April 2020, the Cap would be $625,000 per Floor Broker firm.7 The Exchange believes that this change would allow Exchange incentives to operate as intended—to encourage Floor Brokers to execute volume on the Exchange, and for the period when open outcry is unavailable, to execute all QCC transactions on Exchange and, for the month of April, to continue to increase the number of such QCC transactions. The Exchange also believes the proposed change would also facilitate fair and orderly markets by attempting to avoid an unintended increase in the cost of Floor Brokers’ QCC trading on the Exchange. Absent the proposed change, participating Floor Brokers could experience an unintended increase in the cost of trading on the Exchange, a result that is unintended and undesirable to the Exchange and its Floor Brokers trading QCCs. The Exchange believes that increasing the Cap for the month of April when the Trading Floor may continue to be unavailable would provide Floor Brokers with greater certainty as to their monthly costs and diminish the likelihood of an effective increase in the cost of trading. Moreover, the Exchange’s fees are constrained by intermarket competition, 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.8 7 See proposed Fee Schedule, Section I.F., QCC Fees & Credits, n. 1 (providing that ‘‘[t]he maximum Floor Broker credit paid shall not exceed $425,000 per month per Floor Broker firm (the ‘‘Cap’’), except that for the month of April 2020, the Cap will be $625,000 per Floor Broker firm’’). The Exchange will re-evaluate the time limitations on this change (i.e., whether it will need to apply to May) depending upon how long the Trading Floor remains temporarily closed and would file a separate proposed rule change if an extension is warranted. 8 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=%2Fnas daqomxphlx%2Fphlx%2Fphlx%2Dllcrules%2F (providing that ‘‘[t]he maximum QCC Rebate to be paid in a given month will not exceed $550,000’’); NASDAQ ISE, Options 7 Pricing Schedule, Section 6. Other Options Fees and Rebates, A. QCC and Solicitation Rebate, available here, https:// ise.cchwallstreet.com/tools/ PlatformViewer.asp?selectednode=chp_1_1_ 22&manual=/contents/ise/ise-rules/ (providing no cap on the maximum on the amount of QCC rebate to be paid in a given month). PO 00000 Frm 00139 Fmt 4703 Sfmt 4703 Thus, Floor Brokers have a choice of where they direct their order flow. This proposed change—which increases the maximum available credit for the month of April 2020—is designed to incent 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 Floor Brokers would benefit from this proposed fee change. However, without this proposed change during a time when Floor Brokers have increasingly turned to QCCs because the temporary Trading Floor closure prevents open outcry trading, the Exchange believes the proposed change is necessary to prevent Floor Brokers from diverting QCC order flow from the Exchange if and when they hit the Cap. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,9 in general, and furthers the objectives of Sections 6(b)(4) and (5) of the Act,10 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 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.’’ 11 There are currently 16 registered options exchanges competing for order flow. Based on publicly-available information, and excluding index-based 9 15 U.S.C. 78f(b). U.S.C. 78f(b)(4) and (5). 11 See Securities Exchange Act Release No. 51808 (June 9, 2005), 70 FR 37496, 37499 (June 29, 2005) (S7–10–04) (‘‘Reg NMS Adopting Release’’). 10 15 E:\FR\FM\14APN1.SGM 14APN1 Federal Register / Vol. 85, No. 72 / Tuesday, April 14, 2020 / Notices jbell on DSKJLSW7X2PROD with NOTICES options, no single exchange currently has more than 16% of the market share of executed volume of multiply-listed equity and ETF options trades.12 Therefore, no exchange currently possesses significant pricing power in the execution of multiply-listed equity & ETF options order flow. More specifically, the Exchange had less than 10% market share of executed volume of multiply-listed equity & ETF options trades in January 2020.13 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 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 Floor Brokers may direct their order flow to any of the 16 options exchanges, including those with similar QCC credit programs and associated caps on same.14 Given the recent uptick in QCC transactions on the Exchange following the temporary closures of options trading floors—including the Exchange’s Trading Floor, the Exchange believes the proposed increase to the Cap for the month of April would allow Exchange incentives to operate as intended and would also facilitate fair and orderly markets by attempting to avoid an unintended increase in the cost of Floor Brokers’ QCC trading on the Exchange. Absent the proposed change, participating Floor Brokers could experience an unintended increase in the cost of trading on the Exchange, a result that is unintended and undesirable to the Exchange and its Floor Brokers trading QCCs. The Exchange believes that increasing the Cap for the month of April when the Trading Floor may continue to be 12 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. 13 Based on OCC data, see id., in 2019, 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. 14 See supra note 7 [sic] (regarding NASDAQ PHLX’s $550,000 monthly cap on QCC rebate and NASDAQ ISE’s lack of any such monthly cap of QCC rebate). VerDate Sep<11>2014 18:26 Apr 13, 2020 Jkt 250001 unavailable would provide Floor Brokers with greater certainty as to their monthly costs and diminish the likelihood of an effective increase in the cost of trading. Furthermore, as a general matter, the proposal is designed to encourage Floor Brokers to execute all QCC transactions on Exchange and, for the month of April, to continue to increase the number of such QCC transactions. The proposal caps fees on all similar (QCC) transactions, regardless of size and similarly-situated Floor Brokers can opt to try to achieve the modified (and increased) credit during the month of April. To the extent that the proposed change attracts more QCC trades to the Exchange, 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. The Exchange cannot predict with certainty whether any Floor Brokers would benefit from this proposed fee change. However, without this proposed change during a time when Floor Brokers have increasingly turned to QCCs because the temporary Trading Floor closure prevents open outcry trading, the Exchange believes the proposed change is necessary to prevent Floor Brokers from diverting QCC order flow from the Exchange if and when they hit the Cap. 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 during the month of April and Floor Brokers can opt to avail themselves of the modified Cap (i.e., by executing more QCC transactions) or not. The proposed change would incent Floor Brokers to attract increased QCC order flow to the Exchange that might otherwise go to other options exchanges (e.g., NASDAQ ISE has no cap on its rebate).15 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 15 See supra note 7 [sic] (regarding NASDAQ ISE’s lack of any monthly cap of QCC rebate). PO 00000 Frm 00140 Fmt 4703 Sfmt 4703 20801 participants on the Exchange and, as a consequence, attract more order flow to the Exchange thereby improving marketwide 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 (i.e., Floor Brokers) on an equal and non-discriminatory basis. The proposal is based on the amount and type of business transacted on the Exchange during April 2020 and Floor Brokers are not obligated to try to achieve the modified Cap. The proposed change would incent Floor Brokers to attract increased QCC order flow to the Exchange that might otherwise go to other options exchanges (e.g., NASDAQ ISE has no cap on its rebate).16 As such, the proposal is designed encourage 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 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 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. 16 See E:\FR\FM\14APN1.SGM id. 14APN1 jbell on DSKJLSW7X2PROD with NOTICES 20802 Federal Register / Vol. 85, No. 72 / Tuesday, April 14, 2020 / Notices 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.’’ 17 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 Floor Brokers to attract increased QCC order flow to the Exchange that might otherwise go to other options exchanges (e.g., NASDAQ ISE has no cap on its rebate).18. [sic] Greater liquidity benefits all market participants on the Exchange and increased QCC transactions 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 publiclyavailable information, and excluding index-based options, no single exchange currently has more than 16% of the market share of executed volume of multiply-listed equity and ETF options trades.19 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 17 See Reg NMS Adopting Release, supra note 10 [sic], at 37499. 18 See id. [sic] 19 See supra note 11 [sic]. VerDate Sep<11>2014 18:26 Apr 13, 2020 Jkt 250001 multiply-listed equity & ETF options trades.20 The Exchange believes that the proposed rule change reflects this competitive environment because it modifies the Exchange’s fees in a manner designed to incent Floor Brokers to attract increased QCC order flow to the Exchange that might otherwise go to other options exchanges (e.g., NASDAQ ISE has no cap on its rebate).21 To the extent that Floor Brokers are encouraged to direct trading interest (particularly QCC transactions) to the Exchange. 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.22 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) 23 of the Act and subparagraph (f)(2) of Rule 19b–4 24 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) 25 of the Act to 20 Based on OCC data, supra note 12, 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. 21 See supra note 7 [sic] (regarding NASDAQ ISE’s lack of any monthly cap of QCC rebate). 22 See id. 23 15 U.S.C. 78s(b)(3)(A). 24 17 CFR 240.19b–4(f)(2). 25 15 U.S.C. 78s(b)(2)(B). PO 00000 Frm 00141 Fmt 4703 Sfmt 4703 determine whether the proposed rule change should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number SR– NYSEAMER–2020–26 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–2020–26. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s internet website (https://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website viewing and printing in the Commission’s Public Reference Room, 100 F Street NE, Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–NYSEAMER–2020–26 and should be submitted on or before May 5, 2020. E:\FR\FM\14APN1.SGM 14APN1 Federal Register / Vol. 85, No. 72 / Tuesday, April 14, 2020 / Notices For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.26 J. Matthew DeLesDernier, Assistant Secretary. [FR Doc. 2020–07773 Filed 4–13–20; 8:45 am] BILLING CODE 8011–01–P SMALL BUSINESS ADMINISTRATION Data Collection Available for Public Comments 60-day notice and request for comments. The Small Business Administration (SBA) intends to request approval, from the Office of Management and Budget (OMB) for the collection of information described below. The Paperwork Reduction Act (PRA) requires federal agencies to publish a notice in the Federal Register concerning each proposed collection of information before submission to OMB, and to allow 60 days for public comment in response to the notice. This notice complies with that requirement. DATES: Submit comments on or before June 15, 2020. ADDRESSES: Send all comments to Cassandra Fooks, Program Analyst, Office of Business Development, Small Business Administration, 409 3rd Street SW, Washington, DC 20416. FOR FURTHER INFORMATION CONTACT: Cassandra Fooks, Program Analyst, Office of Business Development, Cassandra.fooks@sba.gov, 202–619– 0305, or Curtis B. Rich, Management Analyst, 202–205–7030, curtis.rich@ sba.gov. SUMMARY: All 8(a) participants are required to provide semi-annual to report the Small Business Administration on compensation provided to any Agents, or Representatives, (hereafter referred to as Representatives), including attorneys, accountants and consultants, for assisting the Participants to receive Federal contracts. The information includes the amount of compensation provided to the Representative and a description of the services performed in return for such compensation received and description of the activities performed in return for such compensation. The information is used to ensure that Participants do not engage in any improper or illegal activity in connection with obtaining a contract. jbell on DSKJLSW7X2PROD with NOTICES 26 17 CFR 200.30–3(a)(12). VerDate Sep<11>2014 20:50 Apr 13, 2020 Jkt 250001 SBA is requesting comments on (a) Whether the collection of information is necessary for the agency to properly perform its functions; (b) whether the burden estimates are accurate; (c) whether there are ways to minimize the burden, including through the use of automated techniques or other forms of information technology; and (d) whether there are ways to enhance the quality, utility, and clarity of the information. Summary of Information Collection ACTION: SUPPLEMENTARY INFORMATION: Solicitation of Public Comments Title: Representatives Used and Compensation Paid for Services in Connection with Obtaining Federal Contracts. Description of Respondents: 8(a) Participants. Form Number: SBA Form 1790. Total Estimated Annual Responses: 4,624. Total Estimated Annual Hour Burden: 2,976. Curtis Rich, Management Analyst. [FR Doc. 2020–07852 Filed 4–13–20; 8:45 am] BILLING CODE 8026–03–P DEPARTMENT OF STATE [Public Notice: 11087] Advisory Committee on Historical Diplomatic Documentation; Notice of Cancellation of Open Meeting Due to concerns surrounding the spread of COVID–19, the Advisory Committee on Historical Diplomatic Documentation is cancelling its open meeting previously scheduled on Monday, June 1. If the meeting is rescheduled, the Department of State will issue a Federal Register Notice with details. For additional information, contact Adam Howard, Office of the Historian, at history@state.gov. Zachary A. Parker, Director, Office of Directives Management, U.S. Department of State. [FR Doc. 2020–07758 Filed 4–13–20; 8:45 am] BILLING CODE 4710–34–P DEPARTMENT OF STATE [Public Notice: 11091] Designation of Nikolay Nikolayevich Trushchalov as a Specially Designated Global Terrorist Acting under the authority of and in accordance with section 1(a)(ii)(B) of Executive Order 13224 of September 23, PO 00000 Frm 00142 Fmt 4703 Sfmt 4703 20803 2001, as amended by Executive Order 13268 of July 2, 2002, Executive Order 13284 of January 23, 2003, and Executive Order 13886 of September 9, 2019, I hereby determine that the person known as Nikolay Nikolayevich Trushchalov, also known as Mykola Mykolayovych Trushchalov, also known as Nikolaj Nikolaevich Trushhalov, also known as Nicholas Truschalov, also known as Nikolay Trushchalov, also known as Nicholas Trushchalov, is a leader of Russian Imperial Movement, a group whose property and interests in property are concurrently blocked pursuant to a determination by the Secretary of State pursuant to Executive Order 13224. Consistent with the determination in section 10 of Executive Order 13224 that prior notice to persons determined to be subject to the Order who might have a constitutional presence in the United States would render ineffectual the blocking and other measures authorized in the Order because of the ability to transfer funds instantaneously, I determine that no prior notice needs to be provided to any person subject to this determination who might have a constitutional presence in the United States, because to do so would render ineffectual the measures authorized in the Order. This notice shall be published in the Federal Register. Dated: March 27, 2020. Michael R. Pompeo, Secretary of State. [FR Doc. 2020–07858 Filed 4–13–20; 8:45 am] BILLING CODE 4710–AD–P DEPARTMENT OF STATE [Public Notice: 11090] Designation of Denis Valiullovich Gariyev as a Specially Designated Global Terrorist Acting under the authority of and in accordance with section 1(a)(ii)(B) of Executive Order 13224 of September 23, 2001, as amended by Executive Order 13268 of July 2, 2002, Executive Order 13284 of January 23, 2003, and Executive Order 13886 of September 9, 2019, I hereby determine that the person known as Denis Valiullovich Gariyev, also known as Denis Gariyev, also known as Denis Gariev, is a leader of Russian Imperial Movement, a group whose property and interests in property are concurrently blocked pursuant to a determination by the Secretary of State pursuant to Executive Order 13224. E:\FR\FM\14APN1.SGM 14APN1

Agencies

[Federal Register Volume 85, Number 72 (Tuesday, April 14, 2020)]
[Notices]
[Pages 20799-20803]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-07773]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-88594; File No. SR-NYSEAMER-2020-26]


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

April 8, 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 April 1, 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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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 April 1, 
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

[[Page 20800]]

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 modify the existing cap on the 
available credit to Floor Brokers that execute a specified number of 
Qualified Contingent Cross (``QCC'') transactions.
    Since March 9, 2020, markets worldwide have been experiencing 
unprecedented market-wide declines and volatility that has resulted 
from the ongoing spread of the novel COVID-19 virus. In addition, 
beginning March 16, 2020, to slow the spread of COVID-19 through 
social-distancing measures, significant limitations have been placed on 
large gatherings throughout the country.\4\ Shortly thereafter, U.S. 
options exchanges that operate physical trading floors, such as Cboe, 
Inc. and NASDAQ PHLX, announced the temporarily closure of such floors 
as a precautionary measure to prevent the potential spread of COVID-19. 
The Exchange likewise announced the temporarily closure of the Trading 
Floor, effective March 23, 2020, which meant that Exchange Floor 
Brokers could not engage in open outcry trading. Following the floor 
closures, including the Exchange's Trading Floor, the Exchange has 
experienced an increase in QCC volume.
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    \4\ For example, in New York City, which is where the NYSE 
Trading Floor is located, public and private schools, universities, 
churches, restaurants, bars, movie theaters, and other commercial 
establishments where large crowds can gather have been closed.
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    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.\5\ The Exchange currently limits the maximum Floor Broker 
credit to $425,000 per month per Floor Broker firm (the ``Cap'').\6\
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    \5\ 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. 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.
    \6\ See id. (providing that ``[t]he maximum Floor Broker credit 
paid shall not exceed $425,000 per month per Floor Broker firm'').
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    Given the unanticipated surge in QCC volume that has resulted from 
the unprecedented temporary closure of the Trading Floor, the Exchange 
proposes to increase the Cap solely for the month of April 2020. 
Specifically, the Exchange proposes that the Cap would remain at 
$425,000, except that for the month of April 2020, the Cap would be 
$625,000 per Floor Broker firm.\7\ The Exchange believes that this 
change would allow Exchange incentives to operate as intended--to 
encourage Floor Brokers to execute volume on the Exchange, and for the 
period when open outcry is unavailable, to execute all QCC transactions 
on Exchange and, for the month of April, to continue to increase the 
number of such QCC transactions. The Exchange also believes the 
proposed change would also facilitate fair and orderly markets by 
attempting to avoid an unintended increase in the cost of Floor 
Brokers' QCC trading on the Exchange.
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    \7\ See proposed Fee Schedule, Section I.F., QCC Fees & Credits, 
n. 1 (providing that ``[t]he maximum Floor Broker credit paid shall 
not exceed $425,000 per month per Floor Broker firm (the ``Cap''), 
except that for the month of April 2020, the Cap will be $625,000 
per Floor Broker firm''). The Exchange will re-evaluate the time 
limitations on this change (i.e., whether it will need to apply to 
May) depending upon how long the Trading Floor remains temporarily 
closed and would file a separate proposed rule change if an 
extension is warranted.
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    Absent the proposed change, participating Floor Brokers could 
experience an unintended increase in the cost of trading on the 
Exchange, a result that is unintended and undesirable to the Exchange 
and its Floor Brokers trading QCCs. The Exchange believes that 
increasing the Cap for the month of April when the Trading Floor may 
continue to be unavailable would provide Floor Brokers with greater 
certainty as to their monthly costs and diminish the likelihood of an 
effective increase in the cost of trading.
    Moreover, the Exchange's fees are constrained by intermarket 
competition, 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.\8\ Thus, Floor Brokers have a choice of 
where they direct their order flow. This proposed change--which 
increases the maximum available credit for the month of April 2020--is 
designed to incent 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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    \8\ 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''); 
NASDAQ ISE, Options 7 Pricing Schedule, Section 6. Other Options 
Fees and Rebates, A. QCC and Solicitation Rebate, available here, 
https://ise.cchwallstreet.com/tools/PlatformViewer.asp?selectednode=chp_1_1_22&manual=/contents/ise/ise-rules/ (providing no cap on the maximum on the amount of QCC rebate 
to be paid in a given month).
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    The Exchange cannot predict with certainty whether any Floor 
Brokers would benefit from this proposed fee change. However, without 
this proposed change during a time when Floor Brokers have increasingly 
turned to QCCs because the temporary Trading Floor closure prevents 
open outcry trading, the Exchange believes the proposed change is 
necessary to prevent Floor Brokers from diverting QCC order flow from 
the Exchange if and when they hit the Cap.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\9\ in general, and furthers the 
objectives of Sections 6(b)(4) and (5) of the Act,\10\ 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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    \9\ 15 U.S.C. 78f(b).
    \10\ 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.'' \11\
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    \11\ 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

[[Page 20801]]

options, no single exchange currently has more than 16% of the market 
share of executed volume of multiply-listed equity and ETF options 
trades.\12\ Therefore, no exchange currently possesses significant 
pricing power in the execution of multiply-listed equity & ETF options 
order flow. More specifically, the Exchange had less than 10% market 
share of executed volume of multiply-listed equity & ETF options trades 
in January 2020.\13\
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    \12\ 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.
    \13\ Based on OCC data, see id., in 2019, 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 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 
Floor Brokers may direct their order flow to any of the 16 options 
exchanges, including those with similar QCC credit programs and 
associated caps on same.\14\
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    \14\ See supra note 7 [sic] (regarding NASDAQ PHLX's $550,000 
monthly cap on QCC rebate and NASDAQ ISE's lack of any such monthly 
cap of QCC rebate).
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    Given the recent uptick in QCC transactions on the Exchange 
following the temporary closures of options trading floors--including 
the Exchange's Trading Floor, the Exchange believes the proposed 
increase to the Cap for the month of April would allow Exchange 
incentives to operate as intended and would also facilitate fair and 
orderly markets by attempting to avoid an unintended increase in the 
cost of Floor Brokers' QCC trading on the Exchange. Absent the proposed 
change, participating Floor Brokers could experience an unintended 
increase in the cost of trading on the Exchange, a result that is 
unintended and undesirable to the Exchange and its Floor Brokers 
trading QCCs. The Exchange believes that increasing the Cap for the 
month of April when the Trading Floor may continue to be unavailable 
would provide Floor Brokers with greater certainty as to their monthly 
costs and diminish the likelihood of an effective increase in the cost 
of trading.
    Furthermore, as a general matter, the proposal is designed to 
encourage Floor Brokers to execute all QCC transactions on Exchange 
and, for the month of April, to continue to increase the number of such 
QCC transactions. The proposal caps fees on all similar (QCC) 
transactions, regardless of size and similarly-situated Floor Brokers 
can opt to try to achieve the modified (and increased) credit during 
the month of April. To the extent that the proposed change attracts 
more QCC trades to the Exchange, 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.
    The Exchange cannot predict with certainty whether any Floor 
Brokers would benefit from this proposed fee change. However, without 
this proposed change during a time when Floor Brokers have increasingly 
turned to QCCs because the temporary Trading Floor closure prevents 
open outcry trading, the Exchange believes the proposed change is 
necessary to prevent Floor Brokers from diverting QCC order flow from 
the Exchange if and when they hit the Cap.
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 during the month of 
April and Floor Brokers can opt to avail themselves of the modified Cap 
(i.e., by executing more QCC transactions) or not. The proposed change 
would incent Floor Brokers to attract increased QCC order flow to the 
Exchange that might otherwise go to other options exchanges (e.g., 
NASDAQ ISE has no cap on its rebate).\15\ 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.
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    \15\ See supra note 7 [sic] (regarding NASDAQ ISE's lack of any 
monthly cap of QCC rebate).
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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 (i.e., Floor Brokers) on an equal and non-
discriminatory basis.
    The proposal is based on the amount and type of business transacted 
on the Exchange during April 2020 and Floor Brokers are not obligated 
to try to achieve the modified Cap. The proposed change would incent 
Floor Brokers to attract increased QCC order flow to the Exchange that 
might otherwise go to other options exchanges (e.g., NASDAQ ISE has no 
cap on its rebate).\16\ As such, the proposal is designed encourage 
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 
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.
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    \16\ See id.
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    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.

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.

[[Page 20802]]

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.'' \17\
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    \17\ See Reg NMS Adopting Release, supra note 10 [sic], 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 Floor Brokers to attract increased QCC order flow to the 
Exchange that might otherwise go to other options exchanges (e.g., 
NASDAQ ISE has no cap on its rebate).\18\. [sic] Greater liquidity 
benefits all market participants on the Exchange and increased QCC 
transactions 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.
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    \18\ See id. [sic]
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    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 currently has more than 16% of the market share of executed 
volume of multiply-listed equity and ETF options trades.\19\ 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.\20\
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    \19\ See supra note 11 [sic].
    \20\ Based on OCC data, supra note 12, 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 incent Floor Brokers to attract increased QCC order 
flow to the Exchange that might otherwise go to other options exchanges 
(e.g., NASDAQ ISE has no cap on its rebate).\21\ To the extent that 
Floor Brokers are encouraged to direct trading interest (particularly 
QCC transactions) to the Exchange. 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.
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    \21\ See supra note 7 [sic] (regarding NASDAQ ISE's lack of any 
monthly cap of QCC rebate).
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    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.\22\
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    \22\ See id.
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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) \23\ of the Act and subparagraph (f)(2) of Rule 
19b-4 \24\ thereunder, because it establishes a due, fee, or other 
charge imposed by the Exchange.
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    \23\ 15 U.S.C. 78s(b)(3)(A).
    \24\ 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) \25\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \25\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-NYSEAMER-2020-26 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-2020-26. This 
file number should be included on the subject line if email is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's internet website (https://www.sec.gov/rules/sro.shtml). 
Copies of the submission, all subsequent amendments, all written 
statements with respect to the proposed rule change that are filed with 
the Commission, and all written communications relating to the proposed 
rule change between the Commission and any person, other than those 
that may be withheld from the public in accordance with the provisions 
of 5 U.S.C. 552, will be available for website viewing and printing in 
the Commission's Public Reference Room, 100 F Street NE, Washington, DC 
20549 on official business days between the hours of 10:00 a.m. and 
3:00 p.m. Copies of the filing also will be available for inspection 
and copying at the principal office of the Exchange. All comments 
received will be posted without change. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-NYSEAMER-2020-26 and should be submitted 
on or before May 5, 2020.



[[Page 20803]]


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\26\
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    \26\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-07773 Filed 4-13-20; 8:45 am]
 BILLING CODE 8011-01-P
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