Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE Arca Equities Fees and Charges, 68603-68605 [2020-23916]
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Federal Register / Vol. 85, No. 210 / Thursday, October 29, 2020 / Notices
Date of required notice: October
29, 2020.
FOR FURTHER INFORMATION CONTACT:
Sean Robinson, 202–268–8405.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on October 16,
2020, it filed with the Postal Regulatory
Commission a USPS Request to Add
Priority Mail Contract 676 to
Competitive Product List. Documents
are available at www.prc.gov, Docket
Nos. MC2021–18, CP2021–19.
DATES:
Sean Robinson,
Attorney, Corporate and Postal Business Law.
[FR Doc. 2020–23907 Filed 10–28–20; 8:45 am]
BILLING CODE 7710–12–P
Agreements in the Mail Classification
Schedule’s Competitive Products List.
DATES: Date of required notice: October
29, 2020.
FOR FURTHER INFORMATION CONTACT:
Sean Robinson, 202–268–8405.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on October 13,
2020, it filed with the Postal Regulatory
Commission a USPS Request to Add
Priority Mail Contract 674 to
Competitive Product List. Documents
are available at www.prc.gov, Docket
Nos. MC2021–16, CP2021–17.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
Sean Robinson,
Attorney, Corporate and Postal Business Law.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
[FR Doc. 2020–23905 Filed 10–28–20; 8:45 am]
BILLING CODE 7710–12–P
POSTAL SERVICE
SECURITIES AND EXCHANGE
COMMISSION
Postal ServiceTM.
Notice.
AGENCY:
[Release No. 34–90266; File No. SR–
NYSEArca–2020–93]
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
DATES: Date of required notice: October
29, 2020.
FOR FURTHER INFORMATION CONTACT:
Sean Robinson, 202–268–8405.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on October 22,
2020, it filed with the Postal Regulatory
Commission a USPS Request to Add
Priority Mail Contract 677 to
Competitive Product List. Documents
are available at www.prc.gov, Docket
Nos. MC2021–20, CP2021–21.
SUMMARY:
Sean Robinson,
Attorney, Corporate and Postal Business Law.
[FR Doc. 2020–23897 Filed 10–28–20; 8:45 am]
BILLING CODE 7710–12–P
POSTAL SERVICE
Product Change—Priority Mail
Negotiated Service Agreement
Postal ServiceTM.
Notice.
jbell on DSKJLSW7X2PROD with NOTICES
AGENCY:
ACTION:
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
SUMMARY:
VerDate Sep<11>2014
18:03 Oct 28, 2020
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.
1. Purpose
Product Change—Priority Mail
Negotiated Service Agreement
ACTION:
68603
Jkt 253001
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend the NYSE Arca
Equities Fees and Charges
October 23, 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 October
20, 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, 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
NYSE Arca Equities Fees and Charges
(‘‘Fee Schedule’’) to reduce the gross
FOCUS fee charged to ETP Holders,
effective January 1, 2021. 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.
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
PO 00000
Frm 00049
Fmt 4703
Sfmt 4703
The Exchange proposes to amend its
Fee Schedule to reduce the gross
FOCUS fee from $0.075 per $1,000
Gross FOCUS Revenue to $0.069 per
$1,000 Gross FOCUS Revenue, effective
January 1, 2021.4
Background
Generally, the Exchange may only use
regulatory fees ‘‘to fund the legal,
regulatory and surveillance operations’’
of the Exchange.5
Consistent with the foregoing, the
Exchange currently charges each ETP
Holder a monthly regulatory fee of
$0.075 per $1,000 of gross revenue
reported on its FOCUS Report (‘‘Gross
FOCUS Fee’’).6 The revenue collected
pursuant to the Gross FOCUS Fee funds
the performance of the Exchange’s
regulatory activities with respect to ETP
Holders, including surveillance
operations expenses. More specifically,
the revenue generated by the Gross
FOCUS Fee funds a material portion,
but not all, of the Exchange’s expenses
related to third-party service providers
and technology and other expenses
related to market surveillance.
The Exchange has sought to perform
its regulatory functions in an effective
and efficient manner. For example,
beginning January 2021, the Exchange
4 The Exchange proposes to immediately reflect
the proposed change in its Price List but not
implement the proposed rate change until January
1, 2021.
5 See NYSE Arca, Inc. Bylaws, Art. II, Sec. 2.03
(Dividends; Regulatory Fees and Penalties). The
Exchange considers surveillance operations of its
ETP Holders part of regulatory operations.
6 FOCUS is an acronym for Financial and
Operational Combined Uniform Single Report.
FOCUS Reports are filed periodically with the
Securities and Exchange Commission (the
‘‘Commission’’ or ‘‘SEC’’) as SEC Form X–17A–5
pursuant to Rule 17a–5 under the Act.
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68604
Federal Register / Vol. 85, No. 210 / Thursday, October 29, 2020 / Notices
anticipates that it will have fully
transitioned from its existing third-party
surveillance system to a lower-cost,
cloud-based surveillance solution.
Consistent with these anticipated cost
savings, the Exchange will be decreasing
the Gross FOCUS Fee by approximately
8%.
Proposed Rule Change
Consistent with the anticipated
reduced regulatory costs the Exchange
proposes to reduce the rate of the Gross
FOCUS Fee by approximately 8% from
$0.075 per $1,000 of gross revenue to
$0.069 per $1,000 of gross revenue,
effective January 1, 2021. The Exchange
proposes this reduction to reflect cost
savings associated with its move to
more cost-effective surveillance and
regulatory solutions. The Exchange
notes that the Gross FOCUS Fee has
remained unchanged since February
2013.7
The Exchange will continue to
monitor the amount of revenue
collected from the Gross FOCUS Fee to
ensure that it, in combination with its
other regulatory fees and fines, does not
exceed regulatory costs. The Exchange
expects to monitor regulatory costs and
revenues on an annual basis, at a
minimum. If the Exchange determines
that regulatory revenues exceed
regulatory costs, the Exchange would
adjust the Gross FOCUS Fee downward
by submitting a fee change filing to the
Commission.
jbell on DSKJLSW7X2PROD with NOTICES
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6(b) 8 of the
Act, in general, and Section 6(b)(4) and
(5) 9 of the Act, in particular, in that it
is designed to provide for the equitable
allocation of reasonable dues, fees, and
other charges among its members and
other persons using its facilities and
does not unfairly discriminate between
customers, issuers, brokers, or dealers.
The Proposal Is Reasonable
The Exchange believes the proposed
fee change is reasonable because it
would help ensure that revenue
collected from the Gross FOCUS Fee
does not exceed a material portion of
the Exchange’s regulatory costs. The
Exchange has targeted the Gross FOCUS
Fee to generate revenues that would be
less than or equal to the Exchange’s
regulatory costs, which is consistent
with both Rule 129 and the
7 See Securities Exchange Act Release No. 69059
(March 7, 2013), 78 FR 16019 (March 13, 2013) (SR–
NYSEArca–2013–23).
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(4) and (5).
VerDate Sep<11>2014
18:03 Oct 28, 2020
Jkt 253001
Commission’s view that regulatory fees
be used for regulatory purposes. As
noted above, the principle that the
Exchange may only use regulatory fees
‘‘to fund the legal, regulatory, and
surveillance operations’’ of the
Exchange is reflected in the Exchange’s
operating agreement.10 In this regard,
the Gross FOCUS Fee has been
calculated to recover a material portion,
but not all, of the Exchange’s expenses
related to third-party service providers
and technology and other expenses
related to market surveillance. The
Exchange accordingly believes reducing
the Gross FOCUS Fee is fair and
reasonable.
The Proposal is an Equitable Allocation
of Fees
The Exchange believes its proposal is
an equitable allocation of fees among its
market participants. The Exchange
believes that the proposed Gross FOCUS
Fee reduction would benefit all ETP
Holders because all ETP Holders would
pay the same rate per $1,000 of gross
revenue. For the same reasons, the
proposed fee reduction neither targets
nor will it have a disparate impact on
any particular category of market
participant. All similarly-situated ETP
Holders would be eligible to qualify for
the lower Gross FOCUS Fee. Thus, the
Exchange believes the decreased Gross
FOCUS Fee would be equitably
allocated in that it is charged to all ETP
Holders equally.
The Proposed Fee Is Not Unfairly
Discriminatory
The Exchange believes that the
proposal is not unfairly discriminatory.
The proposed reduction of the Gross
FOCUS Fee would benefit all similarlysituated market participants on an equal
and non-discriminatory basis. Moreover,
the proposal neither targets nor will it
have a disparate impact on any
particular category of market
participant. The proposed fee change is
designed to pass along regulatory cost
savings, which would apply to and
benefit all ETP Holders equally.
For the foregoing reasons, the
Exchange believes that the proposal is
consistent with the Act.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
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
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.
Intramarket Competition. The
Exchange believes the proposed fee
change would not impose an undue
burden on competition as it is charged
to all ETP Holders to support the
Exchange’s regulatory program,
including its surveillance program. The
Exchange believes that the proposed
Gross FOCUS Fee would not place
certain market participants at an unfair
disadvantage because all ETP Holders
would pay the same rate per $1,000 of
gross revenue. For the same reasons, the
proposed fee reduction neither targets
nor will it have a disparate impact on
any particular category of market
participant. All similarly-situated ETP
Holders would be eligible to qualify for
the lower Gross FOCUS Fee.
Intermarket Competition. The
proposed fee change is not designed to
address any competitive issues. Rather,
the proposed change is designed to help
the Exchange adequately fund its
regulatory surveillance while seeking to
ensure that total regulatory revenues do
not exceed total regulatory costs.
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) 11 of the Act and
subparagraph (f)(2) of Rule 19b–4 12
thereunder, because it establishes a due,
fee, or other charge imposed by the
Exchange.
At any time within 60 days of the
filing of 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
under Section 19(b)(2)(B) 13 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
11 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
13 15 U.S.C. 78s(b)(2)(B).
12 17
10 See
PO 00000
note 5, supra.
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Federal Register / Vol. 85, No. 210 / Thursday, October 29, 2020 / Notices
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:
• 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–2020–93 on the subject line.
Paper Comments
jbell on DSKJLSW7X2PROD with NOTICES
• 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–2020–93. 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–2020–093 and
should be submitted on or before
November 19, 2020.
18:03 Oct 28, 2020
[FR Doc. 2020–23916 Filed 10–28–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
VerDate Sep<11>2014
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
J. Matthew DeLesDernier,
Assistant Secretary.
Jkt 253001
[Release No. 34–90265; File No. SR–ISE–
2020–34]
Self-Regulatory Organizations; Nasdaq
ISE, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change to Extend the Pilot Period
for the Exchange’s Nonstandard
Expirations Pilot Program
October 23, 2020.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on October
21, 2020, Nasdaq ISE, LLC (‘‘ISE’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. 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 extend the
pilot period for the Exchange’s
nonstandard expirations pilot program,
currently set to expire on November 2,
2020.
The text of the proposed rule change
is available on the Exchange’s website at
https://listingcenter.nasdaq.com/
rulebook/ise/rules, 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
Exchange 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 these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00051
Fmt 4703
Sfmt 4703
68605
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
ISE filed a proposed rule change for
the listing and trading on the Exchange,
on a twelve month pilot basis, of p.m.settled options on broad-based indexes
with nonstandard expirations dates. The
pilot program permits both Weekly
Expirations and End of Month (‘‘EOM’’)
expirations similar to those of the a.m.settled broad-based index options,
except that the exercise settlement value
of the options subject to the pilot are
based on the index value derived from
the closing prices of component stocks.
This pilot was extended various times
with the last extension through
November 2, 2020.3
Supplementary Material .07(a) to
Options 4A, Section 12 provides that
the Exchange may open for trading
Weekly Expirations on any broad-based
index eligible for standard options
trading to expire on any Monday,
Wednesday, or Friday (other than the
third Friday-of- the- month or days that
coincide with an EOM expiration).
Weekly Expirations are subject to all
provisions of Options 4A, Section 12
and are treated the same as options on
the same underlying index that expire
on the third Friday of the expiration
month. Unlike the standard monthly
options, however, Weekly Expirations
are p.m.-settled.
Pursuant to Supplementary Material
.07(b) to Options 4A, Section 12 the
Exchange may open for trading EOM
expirations on any broad-based index
eligible for standard options trading to
expire on the last trading day of the
month. EOM expirations are subject to
all provisions of Options 4A, Section 12
and treated the same as options on the
same underlying index that expire on
the third Friday of the expiration
month. However, the EOM expirations
are p.m.-settled.
The Exchange now proposes to amend
Supplementary Material .07(c) to
Options4A, Section 12 so that the
duration of the pilot program for these
nonstandard expirations will be through
May 4, 2021. The Exchange continues to
have sufficient systems capacity to
3 See Securities Exchange Act Release Nos. 85030
(February 1, 2019), 84 FR 2633 (February 7, 2019)
(SR–ISE–2019–01); 85672 (April 17, 2019), 84 FR
16899 (April 23, 2019) (SR–ISE–2019–11); 87380
(October 22, 2019), 84 FR 57786 (October 28, 2019)
(SR–ISE–2019–28); and 88681 (April 17, 2020), 85
FR 22775 (April 23, 2020) (SR–ISE–2020–17).
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]]>Agencies
[Federal Register Volume 85, Number 210 (Thursday, October 29, 2020)]
[Notices]
[Pages 68603-68605]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-23916]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-90266; File No. SR-NYSEArca-2020-93]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE
Arca Equities Fees and Charges
October 23, 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 October 20, 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, II,
and III below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend the NYSE Arca Equities Fees and
Charges (``Fee Schedule'') to reduce the gross FOCUS fee charged to ETP
Holders, effective January 1, 2021. 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 Exchange proposes to amend its Fee Schedule to reduce the gross
FOCUS fee from $0.075 per $1,000 Gross FOCUS Revenue to $0.069 per
$1,000 Gross FOCUS Revenue, effective January 1, 2021.\4\
---------------------------------------------------------------------------
\4\ The Exchange proposes to immediately reflect the proposed
change in its Price List but not implement the proposed rate change
until January 1, 2021.
---------------------------------------------------------------------------
Background
Generally, the Exchange may only use regulatory fees ``to fund the
legal, regulatory and surveillance operations'' of the Exchange.\5\
---------------------------------------------------------------------------
\5\ See NYSE Arca, Inc. Bylaws, Art. II, Sec. 2.03 (Dividends;
Regulatory Fees and Penalties). The Exchange considers surveillance
operations of its ETP Holders part of regulatory operations.
---------------------------------------------------------------------------
Consistent with the foregoing, the Exchange currently charges each
ETP Holder a monthly regulatory fee of $0.075 per $1,000 of gross
revenue reported on its FOCUS Report (``Gross FOCUS Fee'').\6\ The
revenue collected pursuant to the Gross FOCUS Fee funds the performance
of the Exchange's regulatory activities with respect to ETP Holders,
including surveillance operations expenses. More specifically, the
revenue generated by the Gross FOCUS Fee funds a material portion, but
not all, of the Exchange's expenses related to third-party service
providers and technology and other expenses related to market
surveillance.
---------------------------------------------------------------------------
\6\ FOCUS is an acronym for Financial and Operational Combined
Uniform Single Report. FOCUS Reports are filed periodically with the
Securities and Exchange Commission (the ``Commission'' or ``SEC'')
as SEC Form X-17A-5 pursuant to Rule 17a-5 under the Act.
---------------------------------------------------------------------------
The Exchange has sought to perform its regulatory functions in an
effective and efficient manner. For example, beginning January 2021,
the Exchange
[[Page 68604]]
anticipates that it will have fully transitioned from its existing
third-party surveillance system to a lower-cost, cloud-based
surveillance solution. Consistent with these anticipated cost savings,
the Exchange will be decreasing the Gross FOCUS Fee by approximately
8%.
Proposed Rule Change
Consistent with the anticipated reduced regulatory costs the
Exchange proposes to reduce the rate of the Gross FOCUS Fee by
approximately 8% from $0.075 per $1,000 of gross revenue to $0.069 per
$1,000 of gross revenue, effective January 1, 2021. The Exchange
proposes this reduction to reflect cost savings associated with its
move to more cost-effective surveillance and regulatory solutions. The
Exchange notes that the Gross FOCUS Fee has remained unchanged since
February 2013.\7\
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 69059 (March 7,
2013), 78 FR 16019 (March 13, 2013) (SR-NYSEArca-2013-23).
---------------------------------------------------------------------------
The Exchange will continue to monitor the amount of revenue
collected from the Gross FOCUS Fee to ensure that it, in combination
with its other regulatory fees and fines, does not exceed regulatory
costs. The Exchange expects to monitor regulatory costs and revenues on
an annual basis, at a minimum. If the Exchange determines that
regulatory revenues exceed regulatory costs, the Exchange would adjust
the Gross FOCUS Fee downward by submitting a fee change filing to the
Commission.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6(b) \8\ of the Act, in general, and
Section 6(b)(4) and (5) \9\ of the Act, in particular, in that it is
designed to provide for the equitable allocation of reasonable dues,
fees, and other charges among its members and other persons using its
facilities and does not unfairly discriminate between customers,
issuers, brokers, or dealers.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
The Proposal Is Reasonable
The Exchange believes the proposed fee change is reasonable because
it would help ensure that revenue collected from the Gross FOCUS Fee
does not exceed a material portion of the Exchange's regulatory costs.
The Exchange has targeted the Gross FOCUS Fee to generate revenues that
would be less than or equal to the Exchange's regulatory costs, which
is consistent with both Rule 129 and the Commission's view that
regulatory fees be used for regulatory purposes. As noted above, the
principle that the Exchange may only use regulatory fees ``to fund the
legal, regulatory, and surveillance operations'' of the Exchange is
reflected in the Exchange's operating agreement.\10\ In this regard,
the Gross FOCUS Fee has been calculated to recover a material portion,
but not all, of the Exchange's expenses related to third-party service
providers and technology and other expenses related to market
surveillance. The Exchange accordingly believes reducing the Gross
FOCUS Fee is fair and reasonable.
---------------------------------------------------------------------------
\10\ See note 5, supra.
---------------------------------------------------------------------------
The Proposal is an Equitable Allocation of Fees
The Exchange believes its proposal is an equitable allocation of
fees among its market participants. The Exchange believes that the
proposed Gross FOCUS Fee reduction would benefit all ETP Holders
because all ETP Holders would pay the same rate per $1,000 of gross
revenue. For the same reasons, the proposed fee reduction neither
targets nor will it have a disparate impact on any particular category
of market participant. All similarly-situated ETP Holders would be
eligible to qualify for the lower Gross FOCUS Fee. Thus, the Exchange
believes the decreased Gross FOCUS Fee would be equitably allocated in
that it is charged to all ETP Holders equally.
The Proposed Fee Is Not Unfairly Discriminatory
The Exchange believes that the proposal is not unfairly
discriminatory. The proposed reduction of the Gross FOCUS Fee would
benefit all similarly-situated market participants on an equal and non-
discriminatory basis. Moreover, the proposal neither targets nor will
it have a disparate impact on any particular category of market
participant. The proposed fee change is designed to pass along
regulatory cost savings, which would apply to and benefit all ETP
Holders equally.
For the foregoing reasons, the Exchange believes that the proposal
is consistent with the Act.
B. Self-Regulatory Organization's Statement on Burden on Competition
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 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.
Intramarket Competition. The Exchange believes the proposed fee
change would not impose an undue burden on competition as it is charged
to all ETP Holders to support the Exchange's regulatory program,
including its surveillance program. The Exchange believes that the
proposed Gross FOCUS Fee would not place certain market participants at
an unfair disadvantage because all ETP Holders would pay the same rate
per $1,000 of gross revenue. For the same reasons, the proposed fee
reduction neither targets nor will it have a disparate impact on any
particular category of market participant. All similarly-situated ETP
Holders would be eligible to qualify for the lower Gross FOCUS Fee.
Intermarket Competition. The proposed fee change is not designed to
address any competitive issues. Rather, the proposed change is designed
to help the Exchange adequately fund its regulatory surveillance while
seeking to ensure that total regulatory revenues do not exceed total
regulatory costs.
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) \11\ of the Act and subparagraph (f)(2) of Rule
19b-4 \12\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(2).
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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 under
Section 19(b)(2)(B) \13\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\13\ 15 U.S.C. 78s(b)(2)(B).
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[[Page 68605]]
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-2020-93 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-2020-93. 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-2020-093 and should be
submitted on or before November 19, 2020.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-23916 Filed 10-28-20; 8:45 am]
BILLING CODE 8011-01-P
