Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Update the NYSE Arca Options Fee Schedule, 45285-45287 [2020-16156]
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Federal Register / Vol. 85, No. 144 / Monday, July 27, 2020 / Notices
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 and on its
internet website at https://
www.nyse.com. 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–2020–56 and
should be submitted on or before
August 17, 2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–16164 Filed 7–24–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–186, OMB Control No.
3235–0186]
Proposed Collection; Comment
Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
jbell on DSKJLSW7X2PROD with NOTICES
Revision: Form N–8B–2
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission (the
‘‘Commission’’) is soliciting comments
on the collection of information
summarized below. The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget for extension
and approval.
Form N–8B–2 (17 CFR 274.12) is the
form used by unit investment trusts
10 17
CFR 200.30–3(a)(12).
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(‘‘UITs’’) other than separate accounts
that are currently issuing securities,
including UITs that are issuers of
periodic payment plan certificates and
UITs of which a management
investment company is the sponsor or
depositor, to comply with the filing and
disclosure requirements imposed by
section 8(b) of the Investment Company
Act of 1940 (15 U.S.C. 80a-8(b)). Form
N–8B–2 requires disclosure about the
organization of a UIT, its securities, the
personnel and affiliated persons of the
depositor, the distribution and
redemption of securities, the trustee or
custodian, and financial statements. The
Commission uses the information
provided in the collection of
information to determine compliance
with section 8(b) of the Investment
Company Act.
Each registrant subject to the Form N–
8B–2 filing requirement files Form N–
8B–2 for its initial filing and does not
file post-effective amendments on Form
N–8B–2.1 The Commission staff
estimates that approximately one
respondent files one Form N–8B–2
filing annually with the Commission.
Based on form amendments to include
formatting and hyperlinking
requirements to Form N–8B–2 arising
from the adoption of the FAST Act
release,2 staff estimates that the burden
for compliance with Form N–8B–2 is
approximately 28 hours per filing.3 The
total hourly burden for the Form N–8B–
2 filing requirement therefore is 28
hours in the aggregate (1 respondent ×
one filing per respondent × 28 hours per
filing), at an internal cost burden of
$9,912, and external cost burden of
$10,300.
Estimates of the burden hours are
made solely for the purposes of the PRA
and are not derived from a
comprehensive or even a representative
survey or study of the costs of SEC rules
and forms. The information provided on
Form N–8B–2 is mandatory. The
information provided on Form N–8B–2
will not be kept confidential. An agency
may not conduct or sponsor, and a
person is not required to respond to, a
collection of information unless it
1 Post-effective amendments are filed with the
Commission on the UIT’s Form S–6. Hence,
respondents only file Form N–8B–2 for their initial
registration statement and not for post-effective
amendments.
2 FAST Act Modernization and Simplification of
Regulation S–K, Securities Act Release No. 10618
(March 20, 2019) [84 FR 12674 (April 2, 2019)].
3 Staff estimates are also adjusted to reflect new
disclosures for UIT ETFs arising from the adoption
of the Exchange-Traded Funds release. See
Exchange-Traded Funds, Investment Company Act
Release No. 33646 (Sept. 25, 2019) [84 FR 57162
(Oct. 24, 2019)].
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displays a currently valid OMB control
number.
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information will have practical utility;
(b) the accuracy of the agency’s estimate
of the burden of the collection of
information; (c) ways to enhance the
quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or other forms of information
technology. Consideration will be given
to comments and suggestions submitted
in writing within 60 days of this
publication.
Please direct your written comments
to David Bottom, Director/Chief
Information Officer, Securities and
Exchange Commission, C/O Cynthia
Roscoe, 100 F Street NE, Washington,
DC 20549; or send an email to: PRA_
Mailbox@sec.gov.
Dated: July 21, 2020.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–16141 Filed 7–24–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–89359; File No. SR–
NYSEArca–2020–68]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Update the NYSE Arca
Options Fee Schedule
July 21, 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 July 16,
2020 NYSE Arca, Inc. (‘‘NYSE Arca’’ or
the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the self-regulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
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45286
Federal Register / Vol. 85, No. 144 / Monday, July 27, 2020 / Notices
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to modify its
rules to conform the terminology in the
NYSE Arca Options Fee Schedule (‘‘Fee
Schedule’’) to Rule 6.72A–O
(Requirements for Penny Interval
Program), which permits quoting in
penny increments for certain option
classes on a permanent basis. The
proposed rule change is available on the
Exchange’s website at www.nyse.com, at
the principal office of the Exchange, and
at the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this filing is to modify
its rules to conform the terminology in
the Fee Schedule to Rule 6.72A–O
(Requirements for Penny Interval
Program), which permits quoting in
penny increments for certain option
classes on a permanent basis. In sum,
the Exchange proposes to define
‘‘Penny’’ and ‘‘non-Penny’’ issues, with
cross-reference to Rule 6.72A–O and to
eliminate from the Fee Schedule
obsolete references to the ‘‘Pilot’’
program. This filing is technical in
nature as it merely updates the
nomenclature regarding transactions in
Penny and non-Penny issues and does
not modify any associated fees or credits
for such transactions.
jbell on DSKJLSW7X2PROD with NOTICES
Background
On April 1, 2020, the U.S. Securities
and Exchange Commission (the
‘‘Commission’’) approved Amendment
No. 5 to the Plan for the Purpose of
Developing and Implementing
Procedures Designed to Facilitate the
Listing and Trading of Standardized
Options to Adopt a Penny Interval
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19:31 Jul 24, 2020
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Program (‘‘Amendment No. 5’’).4 The
Exchange then filed to conform its
rules—including Rule 6.27A–O—to
Amendment No. 5, which rules (like
Amendment No. 5) became operative
July 1, 2020 (the ‘‘Penny Program’’).5
The Penny Pilot, which was adopted in
2007 and extended and expanded over
the years, expired by its own terms on
June 30, 2020.6
Proposed Changes
The Exchange proposes to modify the
terminology in the Fee Schedule to align
with the terminology in the Penny
Program by adding new definitions for
‘‘Penny’’ and ‘‘non-Penny’’ issues and
eliminating all references to ‘‘Pilot.’’ 7
As proposed, a ‘‘ ‘Penny’ issue or class
refers to option classes that participate
in the Penny Interval Program, as
described in Rule 6.72A–O’’ and a
‘‘‘non-Penny’ issue or class refers to
option classes that do not participate in
the Penny Interval Program, as
described in Rule 6.72A–O.’’ 8
Consistent with the foregoing, the
Exchange proposes to eliminate from
the Fee Schedule all references to
‘‘Pilot’’ as that term relates to the
‘‘Penny Pilot’’ because such references
became obsolete as of July 1, 2020.9
For consistency in usage and
terminology, the Exchange proposes to
modify references to ‘‘non-Penny’’ in
existing text to consistently hyphenate
and utilize a lower case ‘‘n’’ to denote
the term except when it is used in a
section or column heading, which
would add clarity, transparency and
internal consistency.10
4 See Securities Exchange Act Release No. 88532
(April 1, 2020), 85 FR 19545 (April 7, 2020) (File
No 4–443).
5 See Securities Exchange Act Release No. 88943
(May 26, 2020), 85 FR 33255 (June 1, 2020) (SR–
NYSEArca–2020–50) (immediately effective filing
that is operative on July 1, 2020, which outlines the
history of the Penny Pilot program and details the
process for the Penny Interval Program).
6 See Securities Exchange Act Release No. 87610
(November 25, 2019) 84 FR 66047 (December 2,
2019) (NYSEArca-2019–83).
7 See generally proposed Fee Schedule, NYSE
Arca OPTIONS: TRADE–RELATED CHARGES FOR
STANDARD OPTIONS and NYSE Arca OPTIONS:
GENERAL.
8 See proposed Fee Schedule, NYSE Arca
OPTIONS: TRADE–RELATED CHARGES FOR
STANDARD OPTIONS.
9 See proposed Fee Schedule, NYSE Arca
OPTIONS: TRADE–RELATED CHARGES FOR
STANDARD OPTIONS (deleting reference to
‘‘Pilot’’ throughout) and NYSE Arca OPTIONS:
GENERAL, Endnote 6 (deleting reference to ‘‘Pilot’’
and including a reference to Penny Interval Program
and cross reference to Rule 6.72A–O).
10 See generally proposed Fee Schedule, NYSE
Arca OPTIONS: TRADE–RELATED CHARGES FOR
STANDARD OPTIONS.
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2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Securities Exchange Act of 1934
(the ‘‘Act’’),11 in general, and furthers
the objectives of Section 6(b)(5) of the
Act,12 in particular, in that it is designed
to prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest.
In particular, the proposed rule
change, which conforms the
terminology in the Fee Schedule to Rule
6.72A–O, promotes just and equitable
principles of trade because it does not
alter any existing fees or credits but
instead is technical in nature insofar as
it adopts new definitions for ‘‘Penny’’
and ‘‘non-Penny’’ issues, consistent
with Exchange rules, and removes
references to the now-expired (Penny)
‘‘Pilot.’’ This proposed change would
provide internal consistency within
Exchange rules and operate to protect
investors and the investing public by
making the Exchange rules easier to
navigate and comprehend. The
proposed change would render the rules
more accurate and reduce potential
investor confusion, thus helping to
facilitate the maintenance of a fair and
orderly market.
Regarding the proposed technical
changes (see supra notes 9 and 10), the
Exchange believes the changes would
add clarity and transparency to the Fee
Schedule making it easier to navigate
and comprehend to the benefit of all
market participants.
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.
The proposal, which modifies the
terminology in the Fee Schedule to align
with the terminology in the Exchange’s
rules, is not a competitive filing.
Instead, the proposed change is meant
to add clarity and transparency to the
Fee Schedule to the benefit of all market
participants that trade on the Exchange.
Given the technical nature of this filing,
the Exchange anticipates that other
options exchanges will similarly update
their fee schedules (as needed) to align
11 15
12 15
E:\FR\FM\27JYN1.SGM
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
27JYN1
Federal Register / Vol. 85, No. 144 / Monday, July 27, 2020 / Notices
with any rule(s) adopted in
conformance with Amendment No. 5.
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 13 and Rule
19b–4(f)(6) thereunder.14 Because the
foregoing 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 for 30 days after the date of
the filing, or such shorter time as the
Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 15 and Rule 19b–
4(f)(6) 16 thereunder. The Exchange has
proposed to implement the proposed
rule change immediately upon filing
and has asked the Commission to waive
the 30-day operative delay for this
filing.
The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest
because it will allow the Exchange to
modify the terminology in its fee
schedule to conform it to the Penny
Program, which is currently described
in NYSE Arca Rule 6.72A–O. The
proposed rule change does not raise any
novel issues and is technical in nature
as it is designed to update the language
in the Exchange’s fee schedule to reflect
the language used throughout the
Exchange’s rulebook. The Commission
believes that the proposed rule change
proposes ministerial changes which are
designed to alleviate the potential for
investor confusion. Accordingly, the
Commission designates the proposed
rule change as operative upon filing.17
13 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
15 15 U.S.C. 78s(b)(3)(A).
16 17 CFR 240.19b-4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
the proposed rule change at least five business days
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. The Exchange has satisfied this
requirement.
17 For purposes only of waiving the operative
delay for this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
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14 17
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At any time within 60 days of the
filing of the 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
to determine whether the proposed rule
should be approved or disapproved.
45287
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–NYSEArca–2020–68 and
should be submitted on or before
August 17, 2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
J. Matthew DeLesDernier,
Assistant Secretary.
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:
[FR Doc. 2020–16156 Filed 7–24–20; 8:45 am]
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–
NYSEArca–2020–68 on the subject line.
ACTION:
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–NYSEArca-2020–68. 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
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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) of 1995 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
September 25, 2020.
ADDRESSES: Send all comments to Paula
Tavares, Director, Marketing and
Customer Service Office of
Communications & Public Liaison
paula.tavares@sba.gov, Small Business
Administration, 409 3rd Street, 7th
Floor, Washington, DC 20416.
FOR FURTHER INFORMATION CONTACT:
Paula Tavares, Director, Marketing and
Customer Service Office of
Communications & Public Liaison 202–
590–0479 paula.tavares@sba.gov, or
Curtis B. Rich, Management Analyst,
202–205–7030, curtis.rich@sba.gov.
SUPPLEMENTARY INFORMATION: The
information collected from the public,
including our program participants and
stakeholders, will help ensure users
have an effective, and satisfying
experience with the programs and
activities offered or sponsored by the
Small Business Administration. The
information will provide insights into
the public’s perceptions, experience and
expectations, and help focus attention
SUMMARY:
18 17
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CFR 200.30–3(a)(12).
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]]>Agencies
[Federal Register Volume 85, Number 144 (Monday, July 27, 2020)]
[Notices]
[Pages 45285-45287]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-16156]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-89359; File No. SR-NYSEArca-2020-68]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Update the NYSE
Arca Options Fee Schedule
July 21, 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 July 16, 2020 NYSE Arca, Inc. (``NYSE Arca'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
[[Page 45286]]
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to modify its rules to conform the
terminology in the NYSE Arca Options Fee Schedule (``Fee Schedule'') to
Rule 6.72A-O (Requirements for Penny Interval Program), which permits
quoting in penny increments for certain option classes on a permanent
basis. The proposed rule change is available on the Exchange's website
at www.nyse.com, at the principal office of the Exchange, and at the
Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of this filing is to modify its rules to conform the
terminology in the Fee Schedule to Rule 6.72A-O (Requirements for Penny
Interval Program), which permits quoting in penny increments for
certain option classes on a permanent basis. In sum, the Exchange
proposes to define ``Penny'' and ``non-Penny'' issues, with cross-
reference to Rule 6.72A-O and to eliminate from the Fee Schedule
obsolete references to the ``Pilot'' program. This filing is technical
in nature as it merely updates the nomenclature regarding transactions
in Penny and non-Penny issues and does not modify any associated fees
or credits for such transactions.
Background
On April 1, 2020, the U.S. Securities and Exchange Commission (the
``Commission'') approved Amendment No. 5 to the Plan for the Purpose of
Developing and Implementing Procedures Designed to Facilitate the
Listing and Trading of Standardized Options to Adopt a Penny Interval
Program (``Amendment No. 5'').\4\ The Exchange then filed to conform
its rules--including Rule 6.27A-O--to Amendment No. 5, which rules
(like Amendment No. 5) became operative July 1, 2020 (the ``Penny
Program'').\5\ The Penny Pilot, which was adopted in 2007 and extended
and expanded over the years, expired by its own terms on June 30,
2020.\6\
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 88532 (April 1,
2020), 85 FR 19545 (April 7, 2020) (File No 4-443).
\5\ See Securities Exchange Act Release No. 88943 (May 26,
2020), 85 FR 33255 (June 1, 2020) (SR-NYSEArca-2020-50) (immediately
effective filing that is operative on July 1, 2020, which outlines
the history of the Penny Pilot program and details the process for
the Penny Interval Program).
\6\ See Securities Exchange Act Release No. 87610 (November 25,
2019) 84 FR 66047 (December 2, 2019) (NYSEArca-2019-83).
---------------------------------------------------------------------------
Proposed Changes
The Exchange proposes to modify the terminology in the Fee Schedule
to align with the terminology in the Penny Program by adding new
definitions for ``Penny'' and ``non-Penny'' issues and eliminating all
references to ``Pilot.'' \7\ As proposed, a `` `Penny' issue or class
refers to option classes that participate in the Penny Interval
Program, as described in Rule 6.72A-O'' and a ```non-Penny' issue or
class refers to option classes that do not participate in the Penny
Interval Program, as described in Rule 6.72A-O.'' \8\
---------------------------------------------------------------------------
\7\ See generally proposed Fee Schedule, NYSE Arca OPTIONS:
TRADE-RELATED CHARGES FOR STANDARD OPTIONS and NYSE Arca OPTIONS:
GENERAL.
\8\ See proposed Fee Schedule, NYSE Arca OPTIONS: TRADE-RELATED
CHARGES FOR STANDARD OPTIONS.
---------------------------------------------------------------------------
Consistent with the foregoing, the Exchange proposes to eliminate
from the Fee Schedule all references to ``Pilot'' as that term relates
to the ``Penny Pilot'' because such references became obsolete as of
July 1, 2020.\9\
---------------------------------------------------------------------------
\9\ See proposed Fee Schedule, NYSE Arca OPTIONS: TRADE-RELATED
CHARGES FOR STANDARD OPTIONS (deleting reference to ``Pilot''
throughout) and NYSE Arca OPTIONS: GENERAL, Endnote 6 (deleting
reference to ``Pilot'' and including a reference to Penny Interval
Program and cross reference to Rule 6.72A-O).
---------------------------------------------------------------------------
For consistency in usage and terminology, the Exchange proposes to
modify references to ``non-Penny'' in existing text to consistently
hyphenate and utilize a lower case ``n'' to denote the term except when
it is used in a section or column heading, which would add clarity,
transparency and internal consistency.\10\
---------------------------------------------------------------------------
\10\ See generally proposed Fee Schedule, NYSE Arca OPTIONS:
TRADE-RELATED CHARGES FOR STANDARD OPTIONS.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Securities Exchange Act of 1934 (the ``Act''),\11\ in
general, and furthers the objectives of Section 6(b)(5) of the Act,\12\
in particular, in that it is designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to remove impediments to and perfect the mechanism
of a free and open market and a national market system, and, in
general, to protect investors and the public interest.
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\11\ 15 U.S.C. 78f(b).
\12\ 15 U.S.C. 78f(b)(5).
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In particular, the proposed rule change, which conforms the
terminology in the Fee Schedule to Rule 6.72A-O, promotes just and
equitable principles of trade because it does not alter any existing
fees or credits but instead is technical in nature insofar as it adopts
new definitions for ``Penny'' and ``non-Penny'' issues, consistent with
Exchange rules, and removes references to the now-expired (Penny)
``Pilot.'' This proposed change would provide internal consistency
within Exchange rules and operate to protect investors and the
investing public by making the Exchange rules easier to navigate and
comprehend. The proposed change would render the rules more accurate
and reduce potential investor confusion, thus helping to facilitate the
maintenance of a fair and orderly market.
Regarding the proposed technical changes (see supra notes 9 and
10), the Exchange believes the changes would add clarity and
transparency to the Fee Schedule making it easier to navigate and
comprehend to the benefit of all market participants.
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. The proposal, which modifies the terminology in
the Fee Schedule to align with the terminology in the Exchange's rules,
is not a competitive filing. Instead, the proposed change is meant to
add clarity and transparency to the Fee Schedule to the benefit of all
market participants that trade on the Exchange. Given the technical
nature of this filing, the Exchange anticipates that other options
exchanges will similarly update their fee schedules (as needed) to
align
[[Page 45287]]
with any rule(s) adopted in conformance with Amendment No. 5.
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 \13\ and Rule 19b-4(f)(6) thereunder.\14\
Because the foregoing 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 for
30 days after the date of the filing, or such shorter time as the
Commission may designate, it has become effective pursuant to Section
19(b)(3)(A) of the Act \15\ and Rule 19b-4(f)(6) \16\ thereunder. The
Exchange has proposed to implement the proposed rule change immediately
upon filing and has asked the Commission to waive the 30-day operative
delay for this filing.
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\13\ 15 U.S.C. 78s(b)(3)(A)(iii).
\14\ 17 CFR 240.19b-4(f)(6).
\15\ 15 U.S.C. 78s(b)(3)(A).
\16\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest
because it will allow the Exchange to modify the terminology in its fee
schedule to conform it to the Penny Program, which is currently
described in NYSE Arca Rule 6.72A-O. The proposed rule change does not
raise any novel issues and is technical in nature as it is designed to
update the language in the Exchange's fee schedule to reflect the
language used throughout the Exchange's rulebook. The Commission
believes that the proposed rule change proposes ministerial changes
which are designed to alleviate the potential for investor confusion.
Accordingly, the Commission designates the proposed rule change as
operative upon filing.\17\
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\17\ For purposes only of waiving the operative delay for this
proposal, the Commission has considered the proposed rule's impact
on efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the 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 to
determine whether the proposed rule 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 [email protected]. Please include
File Number SR-NYSEArca-2020-68 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-NYSEArca-2020-68. 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-NYSEArca-2020-68 and should be submitted
on or before August 17, 2020.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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\18\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-16156 Filed 7-24-20; 8:45 am]
BILLING CODE 8011-01-P
