Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Change Amending the NYSE American Options Fee Schedule Regarding an Incentive Program for Floor Brokers, 74482-74483 [2020-25616]
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74482
Federal Register / Vol. 85, No. 225 / Friday, November 20, 2020 / Notices
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–
CboeEDGX–2020–053 on the subject
line.
khammond on DSKJM1Z7X2PROD 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–CboeEDGX–2020–053. 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
offices 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– CboeEDGX–2020–053, and
should be submitted on or before
December 11, 2020.
17:08 Nov 19, 2020
[FR Doc. 2020–25615 Filed 11–19–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–90433; File No. SR–
NYSEAMER–2020–81]
Self-Regulatory Organizations; NYSE
American LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Change Amending the NYSE American
Options Fee Schedule Regarding an
Incentive Program for Floor Brokers
November 16, 2020.
Paper Comments
VerDate Sep<11>2014
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.29
J. Matthew DeLesDernier,
Assistant Secretary.
Jkt 253001
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
November 10, 2020, NYSE American
LLC (‘‘NYSE American’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission (the
‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
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’’) regarding an incentive
program for Floor Brokers. The
Exchange proposes to implement the fee
change effective November 10, 2020.4
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,
29 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.
4 The Exchange originally filed to amend the Fee
Schedule on October 30, 2020. (SR–NYSEAMER–
2020–78) and withdrew such filing on November
10, 2020.
1 15
PO 00000
Frm 00173
Fmt 4703
Sfmt 4703
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this filing is to modify
the Fee Schedule to eliminate an
incentive program that was designed to
encourage Floor Brokers to increase
their billable volume (the ‘‘Rebate’’).
The Exchange proposes to implement
the rule changes on November 10, 2020.
Currently, the Exchange provides a
$35,000 Rebate each month that a Floor
Broker organization achieves the
requisite minimum average daily
volume (‘‘ADV’’) of billable contracts.5
To qualify for the monthly Rebate, a
Floor Broker must execute the greater of:
(i) 75,000 contract sides in billable
ADV or
(ii) 150% of the Floor Broker’s total
billable ADV in contract sides during
the first half of 2019 (i.e., January–June
2019).6
The Exchange adopted the Rebate—a
voluntary program—in June 2020 to
encourage Floor Broker organizations to
execute billable volume on the
Exchange.7 However, because the
Rebate program is underutilized (and
therefore did not achieve its intended
effect), the Exchange proposes to
eliminate the Rebate program from the
Fee Schedule.8
The Exchange believes that the
elimination of the Rebate would impact
some firms that would no longer receive
this benefit; however, given that the
Rebate was underutilized, the Exchange
believes that most Floor Brokers firms
would not be impacted by its removal.
5 See Fee Schedule, Section III.E.2., Floor Broker
Billable Volume Rebate (the ‘‘FB Billable Volume
Rebate’’).
6 See id. The calculation for billable ADV applies
to manual executions and QCCs, but excludes any
Customer volume and non-billable Professional
Customer QCC volume, Firm Facilitation trades,
and any volume calculated to achieve the Firm
Monthly Fee Cap and the Strategy Execution Fee
Cap, regardless of whether either of these caps is
achieved. See id.
7 See Securities Exchange Act Release No. 89045
(June 11, 2020), 85 FR 36644 (June 17, 2020) (SR–
NYSEAMER–2020–45) (notice regarding adoption
of the Rebate).
8 See proposed Fee Schedule, Section III.E.2.
(held as ‘‘Reserved’’).
E:\FR\FM\20NON1.SGM
20NON1
Federal Register / Vol. 85, No. 225 / Friday, November 20, 2020 / Notices
khammond on DSKJM1Z7X2PROD with NOTICES
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 Exchange believes that the
proposed rule change to eliminate the
Rebate from the Fee Schedule is
reasonable because this program is
underutilized and has generally not
incentivized Floor Broker organizations
to bring liquidity and increase billable
manual executions on the Exchange.
The Exchange believes eliminating an
underutilized incentive program would
simplify the Fee Schedule. The
Exchange believes that eliminating the
Rebate program from the Fee Schedule
is equitable and not unfairly
discriminatory because the program
would be eliminated in its entirety and
would no longer be available to any
Floor Broker organization.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
In accordance with Section 6(b)(8) of
the Act, the Exchange does not believe
that the proposed rule change would
impose any burden on competition that
is not necessary or appropriate in
furtherance of the purposes of the Act.
Instead, as discussed above, the
Exchange believes that the proposed
elimination of the Rebate program from
the Fee Schedule would not affect
intramarket or intermarket competition
because the Rebate has not incentivized
Floor Broker organizations to add
liquidity or increase billable manual
executions on the Exchange. Because
only those Floor Brokers that met a
minimum monthly volume were eligible
to earn the Rebate, the proposed
elimination of the Rebate would remove
a potential burden on competition in
that it would level the playing field for
all Floor Broker firms operating on the
Exchange.
The Exchange operates in a highly
competitive market in which market
participants can readily favor one of the
16 competing option exchanges. In such
an environment, the Exchange must
continually adjust its fees and rebates to
remain competitive with other
exchanges and to attract order flow to
the Exchange. The Exchange believes
that the proposed rule change reflects
this competitive environment because it
removes an underutilized Rebate that
did not achieve its intended purpose of
attracting order flow.
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 such proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
under Section 19(b)(2)(B) 13 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
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–2020–81 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–2020–81. This
11 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
13 15 U.S.C. 78s(b)(2)(B).
U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(4) and (5).
VerDate Sep<11>2014
17:08 Nov 19, 2020
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–2020–81, and
should be submitted on or before
December 11, 2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–25616 Filed 11–19–20; 8:45 am]
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
Reporting and Recordkeeping
Requirements Under OMB Review
Small Business Administration.
30-Day notice.
AGENCY:
ACTION:
The Small Business
Administration (SBA) is seeking
approval from the Office of Management
and Budget (OMB) for the information
collection described below. In
accordance with the Paperwork
Reduction Act and OMB procedures,
SBA is publishing this notice to allow
all interested members of the public an
additional 30 days to provide comments
SUMMARY:
12 17
9 15
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74483
14 17
E:\FR\FM\20NON1.SGM
CFR 200.30–3(a)(12).
20NON1
Agencies
[Federal Register Volume 85, Number 225 (Friday, November 20, 2020)]
[Notices]
[Pages 74482-74483]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-25616]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-90433; File No. SR-NYSEAMER-2020-81]
Self-Regulatory Organizations; NYSE American LLC; Notice of
Filing and Immediate Effectiveness of Proposed Change Amending the NYSE
American Options Fee Schedule Regarding an Incentive Program for Floor
Brokers
November 16, 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 November 10, 2020, NYSE American LLC (``NYSE American''
or the ``Exchange'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I,
II, and III below, which Items have been prepared by the self-
regulatory organization. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\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 American Options Fee
Schedule (``Fee Schedule'') regarding an incentive program for Floor
Brokers. The Exchange proposes to implement the fee change effective
November 10, 2020.\4\ 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.
---------------------------------------------------------------------------
\4\ The Exchange originally filed to amend the Fee Schedule on
October 30, 2020. (SR-NYSEAMER-2020-78) and withdrew such filing on
November 10, 2020.
---------------------------------------------------------------------------
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of this filing is to modify the Fee Schedule to
eliminate an incentive program that was designed to encourage Floor
Brokers to increase their billable volume (the ``Rebate''). The
Exchange proposes to implement the rule changes on November 10, 2020.
Currently, the Exchange provides a $35,000 Rebate each month that a
Floor Broker organization achieves the requisite minimum average daily
volume (``ADV'') of billable contracts.\5\ To qualify for the monthly
Rebate, a Floor Broker must execute the greater of:
---------------------------------------------------------------------------
\5\ See Fee Schedule, Section III.E.2., Floor Broker Billable
Volume Rebate (the ``FB Billable Volume Rebate'').
---------------------------------------------------------------------------
(i) 75,000 contract sides in billable ADV or
(ii) 150% of the Floor Broker's total billable ADV in contract
sides during the first half of 2019 (i.e., January-June 2019).\6\
---------------------------------------------------------------------------
\6\ See id. The calculation for billable ADV applies to manual
executions and QCCs, but excludes any Customer volume and non-
billable Professional Customer QCC volume, Firm Facilitation trades,
and any volume calculated to achieve the Firm Monthly Fee Cap and
the Strategy Execution Fee Cap, regardless of whether either of
these caps is achieved. See id.
---------------------------------------------------------------------------
The Exchange adopted the Rebate--a voluntary program--in June 2020
to encourage Floor Broker organizations to execute billable volume on
the Exchange.\7\ However, because the Rebate program is underutilized
(and therefore did not achieve its intended effect), the Exchange
proposes to eliminate the Rebate program from the Fee Schedule.\8\
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 89045 (June 11,
2020), 85 FR 36644 (June 17, 2020) (SR-NYSEAMER-2020-45) (notice
regarding adoption of the Rebate).
\8\ See proposed Fee Schedule, Section III.E.2. (held as
``Reserved'').
---------------------------------------------------------------------------
The Exchange believes that the elimination of the Rebate would
impact some firms that would no longer receive this benefit; however,
given that the Rebate was underutilized, the Exchange believes that
most Floor Brokers firms would not be impacted by its removal.
[[Page 74483]]
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.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
The Exchange believes that the proposed rule change to eliminate
the Rebate from the Fee Schedule is reasonable because this program is
underutilized and has generally not incentivized Floor Broker
organizations to bring liquidity and increase billable manual
executions on the Exchange. The Exchange believes eliminating an
underutilized incentive program would simplify the Fee Schedule. The
Exchange believes that eliminating the Rebate program from the Fee
Schedule is equitable and not unfairly discriminatory because the
program would be eliminated in its entirety and would no longer be
available to any Floor Broker organization.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act, the Exchange does
not believe that the proposed rule change would impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act. Instead, as discussed above, the Exchange believes
that the proposed elimination of the Rebate program from the Fee
Schedule would not affect intramarket or intermarket competition
because the Rebate has not incentivized Floor Broker organizations to
add liquidity or increase billable manual executions on the Exchange.
Because only those Floor Brokers that met a minimum monthly volume were
eligible to earn the Rebate, the proposed elimination of the Rebate
would remove a potential burden on competition in that it would level
the playing field for all Floor Broker firms operating on the Exchange.
The Exchange operates in a highly competitive market in which
market participants can readily favor one of the 16 competing option
exchanges. In such an environment, the Exchange must continually adjust
its fees and rebates to remain competitive with other exchanges and to
attract order flow to the Exchange. The Exchange believes that the
proposed rule change reflects this competitive environment because it
removes an underutilized Rebate that did not achieve its intended
purpose of attracting order flow.
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.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \13\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------
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-2020-81 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-2020-81. 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-2020-81, and should be
submitted on or before December 11, 2020.
---------------------------------------------------------------------------
\14\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-25616 Filed 11-19-20; 8:45 am]
BILLING CODE 8011-01-P