Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Streamline the NYSE Arca Equities Fees and Charges, 79235-79239 [2020-26990]
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Federal Register / Vol. 85, No. 237 / Wednesday, December 9, 2020 / Notices
precision and readability of the Rule
text and will not have any competitive
impact on participants.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
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 from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 25 and Rule 19b–
4(f)(6) thereunder.26
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
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–
Phlx–2020–51 on the subject line.
Commission, 100 F Street NE,
Washington, DC 20549–1090.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.27
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–26991 Filed 12–8–20; 8:45 am]
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
25 15
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U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
give the Commission written notice of its intent to
file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
26 17
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SECURITIES AND EXCHANGE
COMMISSION
All submissions should refer to File
Number SR–Phlx–2020–51. 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–Phlx–2020–51 and should
be submitted on or before December 30,
2020.
BILLING CODE 8011–01–P
[Release No. 34–90556; File No. SR–
NYSEArca–2020–101]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Streamline the NYSE
Arca Equities Fees and Charges
December 3, 2020
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’),2 and Rule 19b–4 thereunder,3
notice is hereby given that on November
23, 2020, NYSE Arca, Inc. (‘‘NYSE
Arca’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III 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 streamline
the NYSE Arca Equities Fees and
Charges (‘‘Fee Schedule’’) by deleting
redundant rule text from Tier 1, Tier 2
and Tier 3 pricing tiers. The Exchange
proposes to implement the fee changes
effective November 23, 2020. The
proposed rule change is available on the
Exchange’s website at www.nyse.com, at
the principal office of the Exchange, and
at the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
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 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
27 17
PO 00000
CFR 200.30–3(a)(12).
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A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
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1. Purpose
The Exchange proposes to streamline
the Fee Schedule by deleting redundant
rule text from Tier 1, Tier 2 and Tier 3
pricing tiers. The Exchange proposes to
implement the fee changes effective
November 23, 2020.
Currently, each of Tier 1, Tier 2 and
Tier 3 pricing tiers provides fees and
credits that ETP Holders 4 can qualify
for if they meet the prescribed volume
criteria.
Historically, in addition to the fees
and credits applicable to each of Tier 1,
Tier 2 and Tier 3 pricing tiers, each such
tier also included the Basic Rates fees
and credits. The Exchange believes this
approach has caused more confusion
than clarity and proposes to delete the
redundant rule text that appears in Tier
1, Tier 2 and Tier 3. Each of the fees and
credits proposed for deletion currently
appear under the Basic Rates section of
the Fee Schedule and would continue to
apply to ETP Holders for their activity
that falls outside of Tier 1, Tier 2 and
Tier 3, as applicable. The Exchange is
not proposing any change to the fees
and credits applicable to ETP Holders
other than to delete redundant text from
Tier 1, Tier 2 and Tier 3.
Under Tier 1, ETP Holders that
provide liquidity an average daily share
volume per month of 0.70% or more of
the US consolidated average daily
volume (‘‘US CADV’’) 5 pay a fee of
$0.0030 per share for orders, including
Primary Only (‘‘PO’’) Orders, routed to
any away market that remove liquidity
in Tape A, Tape B and Tape C
securities, and receive a credit of
$0.0031 per share for orders that
provide liquidity in Tape A securities,
$0.0023 per share in Tape B securities,6
and $0.0032 per share in Tape C
4 All references to ETP Holders in connection
with this proposed fee change include Market
Makers.
5 US CADV means United States Consolidated
Average Daily Volume for transactions reported to
the Consolidated Tape, excluding odd lots through
January 31, 2014 (except for purposes of Lead
Market Maker pricing), and excludes volume on
days when the market closes early and on the date
of the annual reconstitution of the Russell
Investments Indexes. Transactions that are not
reported to the Consolidated Tape are not included
in US CADV. See Fee Schedule, footnote 3.
6 Pursuant to the LMM Transaction Fees and
Credits pricing program, ETP Holders affiliated
with LMMs can receive an additional credit when
such ETP Holders provide displayed liquidity to the
Book based on the number of Less Active ETP
Securities in which the LMM is registered as the
LMM. See Securities Exchange Act Release No.
87978 (January 15, 2020), 85 FR 3727 (January 22,
2020) (SR–NYSEArca–2020–03).
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securities. Additionally, ETP Holders
that qualify for Tier 1 also pay a fee of
$0.0010 per share for Market, MarketOn-Close, Limit-On-Close, and AuctionOnly Orders executed in a Closing
Auction. All other fees and credits
under Tier 1 are identical to the fees and
credits provided under the Basic Rates
section of the Fee Schedule. The
Exchange is not proposing to adopt any
new fees or credits or remove any
current fees or credits under Tier 1 with
this proposed rule change.
Accordingly, the Exchange proposes
to delete the following fees and credits
applicable to Tape A and Tape C
securities under Tier 1 of the Fee
Schedule, all of which currently appear
under Basic Rates on the Fee Schedule:
• $0.0030 per share (fee) for orders
that take liquidity from the Book for
Tape A Securities and Tape C
Securities.
• For Mid-Point Liquidity (‘‘MPL’’)
orders providing liquidity to the Book:
Æ $0.0015 per share (credit) in Tape
A Securities and $0.0020 per share
(credit) in Tape C Securities if provided
liquidity in MPL Orders for Tape A,
Tape B and Tape C Securities combined
(‘‘MPL Adding ADV’’) during the billing
month is at least 3 million shares;
Æ $0.0015 per share (credit) in Tape
A Securities and Tape C Securities if
MPL Adding ADV during the billing
month is at least 1.5 million shares and
less than 3 million shares;
Æ $0.0010 per share (credit) in Tape
A and Tape C Securities.
• $0.0030 per share (fee) for MPL
orders removing liquidity from the Book
that are not designated as ‘‘Retail
Orders’’ defined below.
• $0.0010 per share (fee) for MPL
orders removing liquidity from the Book
and are designated as ‘‘retail’’ that meet
the requirements of Rule 7.44–E(a)(3)
but that are not executed in the Retail
Liquidity Program (‘‘Retail Orders’’).
• $0.0015 per share (fee) for Market
and Auction-Only Orders executed in
an Early Open Auction, Core Open
Auction or Trading Halt Auction,
capped at $20,000 per month per Equity
Trading Permit ID.
• No fee or credit for Limit NonDisplayed Orders that provide liquidity
to the Book.
• $0.0030 per share (fee) for Limit
Non-Displayed Orders that take
liquidity from the Book.
Additionally, the Exchange proposes
to delete the following fees and credits
applicable to Tape A securities under
Tier 1 of the Fee Schedule:
• $0.0012 per share (credit) for PO
Orders that provide liquidity to the
NYSE.
PO 00000
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• $0.0010 per share (fee) for PO
Orders routed to the NYSE that execute
in the opening or closing auction.
Finally, under Tier 1, the Fee
Schedule currently provides for a fee of
$0.0029 per share for orders in Tape B
securities that take liquidity from the
Book, and a fee of $0.0029 per share for
Limit Non-Displayed Orders that take
liquidity from the Book. The Exchange
proposes to merge these two fees into a
single fee by adding the words
‘‘including Limit Non-Displayed Limit
Orders’’ to the former fee and deleting
the text of the latter from the Fee
Schedule. In addition, similar to the
statement that currently appears at the
end of Tier 3 of the Fee Schedule, the
Exchange proposes to add the words
‘‘For all other fees and credits, Basic
Rates apply’’ at the end of Tier 1 to
clarify that the rates that are proposed
for deletion would continue to apply to
ETP Holders that qualify for Tier 1 for
all of their other trading activity. The
Exchange also proposes to delete the
following fees and credits applicable to
Tape B securities under Tier 1 as each
are duplicative and currently appear
under Basic Rates:
• No per share (credit) for PO orders
routed to NYSE American that provide
liquidity to the NYSE American Book.
• MPL orders providing liquidity to
the Book:
Æ $0.0020 per share (credit) if MPL
Adding ADV during the billing month is
at least 3 million shares;
Æ $0.0015 per share (credit) if MPL
Adding ADV during the billing month is
at least 1.5 million shares and less than
3 million shares;
Æ $0.0010 per share (credit) if MPL
Adding ADV during the billing month is
less than 1.5 million shares.
• $0.0030 per share (fee) for MPL
orders removing liquidity from the Book
that are not designated as Retail Orders.
• $0.0010 per share (fee) for MPL
orders removing liquidity from the Book
that are designated as Retail Orders.
• $0.0015 per share (fee) for Market
and Auction-Only Orders executed in
an Early Open Auction, Core Open
Auction or Trading Halt Auction,
capped at $20,000 per month per Equity
Trading Permit ID.
• $0.0005 per share (fee) for PO
Orders routed to NYSE American that
execute in the opening or closing
auction.
• No fee or credit for Limit NonDisplayed Orders that provide liquidity
to the Book.
Under Tier 2, ETP Holders can qualify
for the applicable fees and credits in one
of two ways. ETP Holders can either
provide liquidity an average daily share
volume per month of 0.30% or more,
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but less than 0.70% of the US CADV.
Alternatively, ETP Holders can (a)
provide liquidity an average daily share
volume per month of 0.25% or more,
but less than 0.70% of the US CADV, (b)
execute removing volume in Tape B
Securities equal to at least 0.40% of US
Tape B CADV, and (c) maintain
affiliation with an OTP Holder or OTP
Firm that provides an ADV of electronic
posted Customer and Professional
Customer executions in all issues on
NYSE Arca Options (excluding mini
options) of at least 0.25% of total
Customer equity and ETF option ADV
as reported by OCC.
ETP Holders that qualify for Tier 2
pay a fee of $0.0030 per share for orders,
including PO Orders, routed to any
away market that remove liquidity in
Tape A, Tape B and Tape C securities,
and receive a credit of $0.0029 per share
for orders that provide liquidity in Tape
A and Tape C securities,7 and $0.0022
per share for orders that provide
liquidity in Tape B securities.8 All other
fees and credits under Tier 2 are
identical to the fees and credits
provided under the Basic Rates section
of the Fee Schedule. The Exchange is
not proposing to adopt any new fees or
credits or remove any current fees or
credits under Tier 2 with this proposed
rule change.
Accordingly, the Exchange proposes
to delete the following fees and credits
applicable to Tape A and Tape C
securities under Tier 2 of the Fee
Schedule, all of which currently appear
under Basic Rates on the Fee Schedule:
• $0.0030 per share (fee) for orders
that take liquidity from the Book.
• For Mid-Point Liquidity (‘‘MPL’’)
orders providing liquidity to the Book:
Æ $0.0015 per share (credit) in Tape
A Securities and $0.0020 per share
7 Under Tier 2, ETP Holders can alternatively
qualify for a credit of $0.0031 per share for orders
in Tape A and Tape C securities that provide
displayed liquidity if such ETP Holder meets the
requirements of Tier 2 and, (1) executes providing
volume equal to at least 0.30% of US CADV, (2)
executes removing volume equal to at least 0.285%
of US CADV, and (3) executes Market-On-Close and
Limit-On-Close Orders executed in a Closing
Auction of at least 0.075% of US CADV.
8 Under Tier 2, ETP Holders can alternatively
qualify for a credit of $0.0024 per share for orders
in Tape B securities that provide displayed
liquidity if such ETP Holder meets the requirements
of Tier 2 and, (1) executes providing volume equal
to at least 0.30% of US CADV, (2) executes
removing volume equal to at least 0.285% of US
CADV, and (3) executes Market-On-Close and
Limit-On-Close Orders executed in a Closing
Auction of at least 0.075% of US CADV. Pursuant
to the LMM Transaction Fees and Credits pricing
program, ETP Holders affiliated with LMMs can
receive an additional credit when such ETP Holders
provide displayed liquidity to the Book in Tape B
securities based on the number of Less Active ETP
Securities in which the LMM is registered as the
LMM.
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(credit) in Tape C Securities if provided
liquidity in MPL Orders for Tape A,
Tape B and Tape C Securities combined
(‘‘MPL Adding ADV’’) during the billing
month is at least 3 million shares;
Æ $0.0015 per share (credit) in Tape
A Securities and Tape C Securities if
MPL Adding ADV during the billing
month is at least 1.5 million shares and
less than 3 million shares;
Æ $0.0010 per share (credit) in Tape
A and Tape C Securities.
• $0.0030 per share (fee) for MPL
orders removing liquidity from the Book
that are not designated as ‘‘Retail
Orders’’ defined below.
• $0.0010 per share (fee) for MPL
orders removing liquidity from the Book
that are designated Retail Orders.
• $0.0015 per share (fee) for Market
and Auction-Only Orders executed in
an Early Open Auction, Core Open
Auction or Trading Halt Auction,
capped at $20,000 per month per Equity
Trading Permit ID.
• No fee or credit for Limit NonDisplayed Orders that provide liquidity
to the Book.
• $0.0030 per share (fee) for Limit
Non-Displayed Orders that take
liquidity from the Book.
Additionally, the Exchange proposes
to delete the following fees and credits
applicable to Tape A securities under
Tier 2 of the Fee Schedule:
• $0.0012 per share (credit) for PO
Orders that provide liquidity to the
NYSE.
• $0.0010 per share (fee) for PO
Orders routed to the NYSE that execute
in the opening or closing auction.
Finally, under Tier 2, the Fee
Schedule currently provides for a fee of
$0.0029 per share for orders in Tape B
securities that take liquidity from the
Book, and a fee of $0.0029 per share for
Limit Non-Displayed Orders that take
liquidity from the Book. The Exchange
proposes to merge these two fees into a
single fee by adding the words
‘‘including Limit Non-Displayed Limit
Orders’’ to the former fee and deleting
the text of the latter from the Fee
Schedule. In addition, similar to the
statement that currently appears at the
end of Tier 3 of the Fee Schedule, the
Exchange proposes to add the words
‘‘For all other fees and credits, Basic
Rates apply’’ at the end of Tier 2 to
clarify that the rates that are proposed
for deletion would continue to apply to
ETP Holders that qualify for Tier 2 for
all of their other trading activity. The
Exchange also proposes to delete the
following fees and credits applicable to
Tape B securities under Tier 2 as each
are duplicative and currently appear
under Basic Rates:
PO 00000
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79237
• No per share (credit) for PO orders
routed to NYSE American that provide
liquidity to the NYSE American Book.
• MPL orders providing liquidity to
the Book:
Æ $0.0020 per share (credit) if MPL
Adding ADV during the billing month is
at least 3 million shares;
Æ $0.0015 per share (credit) if MPL
Adding ADV during the billing month is
at least 1.5 million shares and less than
3 million shares;
Æ $0.0010 per share (credit) if MPL
Adding ADV during the billing month is
less than 1.5 million shares.
• $0.0030 per share (fee) for MPL
orders removing liquidity from the Book
that are not designated as Retail Orders.
• $0.0010 per share (fee) for MPL
orders removing liquidity from the Book
that are designated as Retail Orders.
• $0.0015 per share (fee) for Market
and Auction-Only Orders executed in
an Early Open Auction, Core Open
Auction or Trading Halt Auction,
capped at $20,000 per month per Equity
Trading Permit ID.
• $0.0005 per share (fee) for PO
Orders routed to NYSE American that
execute in the opening or closing
auction.
• No fee or credit for Limit NonDisplayed Orders that provide liquidity
to the Book.
Under Tier 3, ETP Holders that
provide liquidity an average daily share
volume per month of 0.20% or more,
but less than 0.30% of the US CADV
pay a fee of $0.0030 per share for orders,
including PO Orders, routed to any
away market that remove liquidity in
Tape A, Tape B and Tape C securities,
and receive a credit of $0.0025 per share
for orders that provide liquidity in Tape
A and Tape C securities,9 or and
$0.0022 per share in Tape B securities.10
Additionally, ETP Holders that qualify
for Tier 3 also pay a fee of $0.0010 per
share for Market, Market-On-Close,
Limit-On-Close, and Auction-Only
Orders executed in a Closing Auction.
All other fees and credits under Tier 3
are identical to the fees and credits
provided under the Basic Rates section
of the Fee Schedule. The Exchange is
9 Under Tier 3, ETP Holder can also receive a
credit of $0.0027 per share for orders in Tape A and
Tape C securities if the ETP Holder meets the
requirements of Tier 3 and its ADV of executed
orders that provide liquidity is at least 0.05% of US
CADV more than the ETP Holder’s ADV of executed
orders that provide liquidity as a percent of US
CADV in May 2019.
10 Pursuant to the LMM Transaction Fees and
Credits pricing program, ETP Holders affiliated
with LMMs can receive an additional credit when
such ETP Holders provide displayed liquidity to the
Book based on the number of Less Active ETP
Securities in which the LMM is registered as the
LMM.
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not proposing to adopt any new fees or
credits or remove any current fees or
credits under Tier 3 with this proposed
rule change.
Accordingly, the Exchange proposes
to delete the following fees and credits
applicable to Tape A and Tape C
securities under Tier 3 of the Fee
Schedule, all of which currently appear
under Basic Rates on the Fee Schedule:
• $0.0030 per share (fee) for orders
that take liquidity from the Book.
• No fee or credit for Limit NonDisplayed Orders that provide liquidity
to the Book.
• $0.0030 per share (fee) for Limit
Non-Displayed Orders that take
liquidity from the Book.
Additionally, the Exchange proposes
to delete the following fee applicable to
Tape A securities under Tier 3 of the
Fee Schedule:
• $0.0010 per share (fee) for PO
Orders routed to the NYSE that execute
in the opening or closing auction.
Finally, under Tier 3, the Fee
Schedule currently provides for a fee of
$0.0029 per share for orders in Tape B
securities that take liquidity from the
Book, and a fee of $0.0029 per share for
Limit Non-Displayed Orders that take
liquidity from the Book. The Exchange
proposes to merge these two fees into a
single fee by adding the words
‘‘including Limit Non-Displayed Limit
Orders’’ to the former fee and deleting
the text of the latter from the Fee
Schedule. The Exchange also proposes
to delete the following fees and credits
applicable to Tape B securities under
Tier 3 as it is duplicative and currently
appears under Basic Rates:
• No fee or credit for Limit NonDisplayed Orders that provide liquidity
to the Book.
The proposed changes are not
otherwise intended to address any other
issues, and the Exchange is not aware of
any significant problems that market
participants would have in complying
with the proposed changes.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,11 in general, and
furthers the objectives of Sections
6(b)(4) and(5) of the Act,12 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 streamline the
Fee Schedule by deleting redundant
rule text is reasonable because each of
the fees and credits proposed for
deletion currently appear under the
Basic Rates section of the Fee Schedule
which is the more appropriate place for
such fees and credits. The Exchange
believes providing the base rates under
the Basic Rates section of the Fee
Schedule would promote clarity to the
Fee Schedule and reduce confusion to
ETP Holders as to which fees and
credits are applicable to their trading
activity on the Exchange. The Exchange
believes it is reasonable to delete the
redundant fees and credits from Tier 1,
Tier 2 and Tier 3 of the Fee Schedule
and therefore, streamline the Fee
Schedule to promote clarity and reduce
confusion as to the applicability of fees
and credits that ETP Holders would be
subject to. The Exchange believes
deleting redundant fees and credits
would also simplify the Fee Schedule.
The Exchange believes that deleting
redundant fees and credits from Tier 1,
Tier 2 and Tier of the Fee Schedule is
equitable and not unfairly
discriminatory because the resulting
streamlined Fee Schedule would
continue to apply to ETP Holders as it
does currently because the Exchange is
not adopting any new fees or credits or
removing any current fees or credits
from the Fee Schedule. All ETP Holders
would continue to be subject to the
same fees and credits that currently
apply to them.
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
In accordance with Section 6(b)(8) of
the Act,13 the Exchange believes that the
proposed rule change would not impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
Intramarket Competition. The
Exchange’s proposal to delete redundant
fees and credits from Tier 1, Tier 2 and
Tier 3 of the Fee Schedule will not place
any undue burden on intramarket
competition that is not necessary or
appropriate in furtherance of the
purposes of the Act because all ETP
Holders would continue to be subject to
the same fees and credits that currently
apply to them. To the extent the
proposed rule change places a burden
on competition, any such burden would
be outweighed by the fact that a
streamlined Fee Schedule would
promote clarity and reduce confusion
U.S.C. 78f(b).
12 15 U.S.C. 78f(b)(4) and (5).
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C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change is effective
upon filing pursuant to Section
19(b)(3)(A) 14 of the Act and
subparagraph (f)(2) of Rule 19b–4 15
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) 16 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:
14 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
16 15 U.S.C. 78s(b)(2)(B).
15 17
11 15
VerDate Sep<11>2014
with respect to the fees and credits that
ETP Holders would be subject to.
Intermarket Competition. The
Exchange believes the proposed rule
change does not impose any burden on
intermarket competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange operates in a highly
competitive market in which market
participants can readily choose to send
their orders to other exchanges and offexchange venues if they deem fee levels
at those other venues to be more
favorable. Market share statistics
provide ample evidence that price
competition between exchanges is
fierce, with liquidity and market share
moving freely from one execution venue
to another in reaction to pricing
changes.
13 15
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U.S.C. 78f(b)(8).
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09DEN1
Federal Register / Vol. 85, No. 237 / Wednesday, December 9, 2020 / Notices
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–2020–101 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.
jbell on DSKJLSW7X2PROD with NOTICES
All submissions should refer to File
Number SR–NYSEArca–2020–101. 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–2020–101, and
should be submitted on or before
December 30, 2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
J. Matthew DeLesDernier,
Assistant Secretary.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–90560; File No. SR–
NYSENAT–2020–35]
Self-Regulatory Organizations; NYSE
National, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Its Schedule of
Fees and Rebates
December 3, 2020.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’),2 and Rule 19b–4 thereunder,3
notice is hereby given that on December
1, 2020, NYSE National, Inc. (‘‘NYSE
National’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III 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 amend its
Schedule of Fees and Rebates (‘‘Fee
Schedule’’) to modify Adding Tier 2 and
Removing Tier 1. The Exchange
proposes to implement the rule change
on December 1, 2020. The proposed rule
change is available on the Exchange’s
website at www.nyse.com, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
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.
[FR Doc. 2020–26990 Filed 12–8–20; 8:45 am]
BILLING CODE 8011–01–P
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
17 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
16:16 Dec 08, 2020
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79239
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 modify Adding Tier 2
and Removing Tier 1.
The proposed changes respond to the
current competitive environment where
order flow providers have a choice of
where to direct liquidity-providing and
liquidity-removing orders by offering
further incentives for ETP Holders to
send additional displayed and nondisplayed liquidity to the Exchange. The
proposed changes also respond to the
current volatile market environment
that has resulted in unprecedented
average daily volumes, which is related
to the ongoing spread of the novel
coronavirus (‘‘COVID–19’’).
The Exchange proposes to implement
the rule change on December 1, 2020.
Current Market and Competitive
Environment
The Exchange operates in a highly
competitive market. The Commission
has repeatedly expressed its preference
for competition over regulatory
intervention in determining prices,
products, and services in the securities
markets. Specifically, in Regulation
NMS, the Commission highlighted the
importance of market forces in
determining prices and SRO revenues
and, also, recognized that current
regulation of the market system ‘‘has
been remarkably successful in
promoting market competition in its
broader forms that are most important to
investors and listed companies.’’ 4
While Regulation NMS has enhanced
competition, it has also fostered a
‘‘fragmented’’ market structure where
trading in a single stock can occur
across multiple trading centers. When
multiple trading centers compete for
order flow in the same stock, the
Commission has recognized that ‘‘such
competition can lead to the
fragmentation of order flow in that
stock.’’ 5 Indeed, equity trading is
currently dispersed across 16
exchanges,6 31 alternative trading
4 See Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496, 37499 (S7–10–04)
(Final Rule) (‘‘Regulation NMS’’).
5 See Securities Exchange Act Release No. 61358,
75 FR 3594, 3597 (January 21, 2010) (File No. S7–
02–10) (Concept Release on Equity Market
Structure).
6 See Cboe Global Markets, U.S. Equities Market
Volume Summary, available at https://
markets.cboe.com/us/equities/market_share/. See
generally https://www.sec.gov/fast-answers/
divisionsmarketregmrexchangesshtml.html.
E:\FR\FM\09DEN1.SGM
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]]>Agencies
[Federal Register Volume 85, Number 237 (Wednesday, December 9, 2020)]
[Notices]
[Pages 79235-79239]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-26990]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-90556; File No. SR-NYSEArca-2020-101]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Streamline the
NYSE Arca Equities Fees and Charges
December 3, 2020
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act''),\2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that on November 23, 2020, NYSE Arca, Inc. (``NYSE Arca'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III 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.
---------------------------------------------------------------------------
\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 streamline the NYSE Arca Equities Fees and
Charges (``Fee Schedule'') by deleting redundant rule text from Tier 1,
Tier 2 and Tier 3 pricing tiers. The Exchange proposes to implement the
fee changes effective November 23, 2020. The proposed rule change is
available on the Exchange's website at www.nyse.com, at the principal
office of the Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change 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.
[[Page 79236]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to streamline the Fee Schedule by deleting
redundant rule text from Tier 1, Tier 2 and Tier 3 pricing tiers. The
Exchange proposes to implement the fee changes effective November 23,
2020.
Currently, each of Tier 1, Tier 2 and Tier 3 pricing tiers provides
fees and credits that ETP Holders \4\ can qualify for if they meet the
prescribed volume criteria.
---------------------------------------------------------------------------
\4\ All references to ETP Holders in connection with this
proposed fee change include Market Makers.
---------------------------------------------------------------------------
Historically, in addition to the fees and credits applicable to
each of Tier 1, Tier 2 and Tier 3 pricing tiers, each such tier also
included the Basic Rates fees and credits. The Exchange believes this
approach has caused more confusion than clarity and proposes to delete
the redundant rule text that appears in Tier 1, Tier 2 and Tier 3. Each
of the fees and credits proposed for deletion currently appear under
the Basic Rates section of the Fee Schedule and would continue to apply
to ETP Holders for their activity that falls outside of Tier 1, Tier 2
and Tier 3, as applicable. The Exchange is not proposing any change to
the fees and credits applicable to ETP Holders other than to delete
redundant text from Tier 1, Tier 2 and Tier 3.
Under Tier 1, ETP Holders that provide liquidity an average daily
share volume per month of 0.70% or more of the US consolidated average
daily volume (``US CADV'') \5\ pay a fee of $0.0030 per share for
orders, including Primary Only (``PO'') Orders, routed to any away
market that remove liquidity in Tape A, Tape B and Tape C securities,
and receive a credit of $0.0031 per share for orders that provide
liquidity in Tape A securities, $0.0023 per share in Tape B
securities,\6\ and $0.0032 per share in Tape C securities.
Additionally, ETP Holders that qualify for Tier 1 also pay a fee of
$0.0010 per share for Market, Market-On-Close, Limit-On-Close, and
Auction-Only Orders executed in a Closing Auction. All other fees and
credits under Tier 1 are identical to the fees and credits provided
under the Basic Rates section of the Fee Schedule. The Exchange is not
proposing to adopt any new fees or credits or remove any current fees
or credits under Tier 1 with this proposed rule change.
---------------------------------------------------------------------------
\5\ US CADV means United States Consolidated Average Daily
Volume for transactions reported to the Consolidated Tape, excluding
odd lots through January 31, 2014 (except for purposes of Lead
Market Maker pricing), and excludes volume on days when the market
closes early and on the date of the annual reconstitution of the
Russell Investments Indexes. Transactions that are not reported to
the Consolidated Tape are not included in US CADV. See Fee Schedule,
footnote 3.
\6\ Pursuant to the LMM Transaction Fees and Credits pricing
program, ETP Holders affiliated with LMMs can receive an additional
credit when such ETP Holders provide displayed liquidity to the Book
based on the number of Less Active ETP Securities in which the LMM
is registered as the LMM. See Securities Exchange Act Release No.
87978 (January 15, 2020), 85 FR 3727 (January 22, 2020) (SR-
NYSEArca-2020-03).
---------------------------------------------------------------------------
Accordingly, the Exchange proposes to delete the following fees and
credits applicable to Tape A and Tape C securities under Tier 1 of the
Fee Schedule, all of which currently appear under Basic Rates on the
Fee Schedule:
$0.0030 per share (fee) for orders that take liquidity
from the Book for Tape A Securities and Tape C Securities.
For Mid-Point Liquidity (``MPL'') orders providing
liquidity to the Book:
[cir] $0.0015 per share (credit) in Tape A Securities and $0.0020
per share (credit) in Tape C Securities if provided liquidity in MPL
Orders for Tape A, Tape B and Tape C Securities combined (``MPL Adding
ADV'') during the billing month is at least 3 million shares;
[cir] $0.0015 per share (credit) in Tape A Securities and Tape C
Securities if MPL Adding ADV during the billing month is at least 1.5
million shares and less than 3 million shares;
[cir] $0.0010 per share (credit) in Tape A and Tape C Securities.
$0.0030 per share (fee) for MPL orders removing liquidity
from the Book that are not designated as ``Retail Orders'' defined
below.
$0.0010 per share (fee) for MPL orders removing liquidity
from the Book and are designated as ``retail'' that meet the
requirements of Rule 7.44-E(a)(3) but that are not executed in the
Retail Liquidity Program (``Retail Orders'').
$0.0015 per share (fee) for Market and Auction-Only Orders
executed in an Early Open Auction, Core Open Auction or Trading Halt
Auction, capped at $20,000 per month per Equity Trading Permit ID.
No fee or credit for Limit Non-Displayed Orders that
provide liquidity to the Book.
$0.0030 per share (fee) for Limit Non-Displayed Orders
that take liquidity from the Book.
Additionally, the Exchange proposes to delete the following fees
and credits applicable to Tape A securities under Tier 1 of the Fee
Schedule:
$0.0012 per share (credit) for PO Orders that provide
liquidity to the NYSE.
$0.0010 per share (fee) for PO Orders routed to the NYSE
that execute in the opening or closing auction.
Finally, under Tier 1, the Fee Schedule currently provides for a
fee of $0.0029 per share for orders in Tape B securities that take
liquidity from the Book, and a fee of $0.0029 per share for Limit Non-
Displayed Orders that take liquidity from the Book. The Exchange
proposes to merge these two fees into a single fee by adding the words
``including Limit Non-Displayed Limit Orders'' to the former fee and
deleting the text of the latter from the Fee Schedule. In addition,
similar to the statement that currently appears at the end of Tier 3 of
the Fee Schedule, the Exchange proposes to add the words ``For all
other fees and credits, Basic Rates apply'' at the end of Tier 1 to
clarify that the rates that are proposed for deletion would continue to
apply to ETP Holders that qualify for Tier 1 for all of their other
trading activity. The Exchange also proposes to delete the following
fees and credits applicable to Tape B securities under Tier 1 as each
are duplicative and currently appear under Basic Rates:
No per share (credit) for PO orders routed to NYSE
American that provide liquidity to the NYSE American Book.
MPL orders providing liquidity to the Book:
[cir] $0.0020 per share (credit) if MPL Adding ADV during the
billing month is at least 3 million shares;
[cir] $0.0015 per share (credit) if MPL Adding ADV during the
billing month is at least 1.5 million shares and less than 3 million
shares;
[cir] $0.0010 per share (credit) if MPL Adding ADV during the
billing month is less than 1.5 million shares.
$0.0030 per share (fee) for MPL orders removing liquidity
from the Book that are not designated as Retail Orders.
$0.0010 per share (fee) for MPL orders removing liquidity
from the Book that are designated as Retail Orders.
$0.0015 per share (fee) for Market and Auction-Only Orders
executed in an Early Open Auction, Core Open Auction or Trading Halt
Auction, capped at $20,000 per month per Equity Trading Permit ID.
$0.0005 per share (fee) for PO Orders routed to NYSE
American that execute in the opening or closing auction.
No fee or credit for Limit Non-Displayed Orders that
provide liquidity to the Book.
Under Tier 2, ETP Holders can qualify for the applicable fees and
credits in one of two ways. ETP Holders can either provide liquidity an
average daily share volume per month of 0.30% or more,
[[Page 79237]]
but less than 0.70% of the US CADV. Alternatively, ETP Holders can (a)
provide liquidity an average daily share volume per month of 0.25% or
more, but less than 0.70% of the US CADV, (b) execute removing volume
in Tape B Securities equal to at least 0.40% of US Tape B CADV, and (c)
maintain affiliation with an OTP Holder or OTP Firm that provides an
ADV of electronic posted Customer and Professional Customer executions
in all issues on NYSE Arca Options (excluding mini options) of at least
0.25% of total Customer equity and ETF option ADV as reported by OCC.
ETP Holders that qualify for Tier 2 pay a fee of $0.0030 per share
for orders, including PO Orders, routed to any away market that remove
liquidity in Tape A, Tape B and Tape C securities, and receive a credit
of $0.0029 per share for orders that provide liquidity in Tape A and
Tape C securities,\7\ and $0.0022 per share for orders that provide
liquidity in Tape B securities.\8\ All other fees and credits under
Tier 2 are identical to the fees and credits provided under the Basic
Rates section of the Fee Schedule. The Exchange is not proposing to
adopt any new fees or credits or remove any current fees or credits
under Tier 2 with this proposed rule change.
---------------------------------------------------------------------------
\7\ Under Tier 2, ETP Holders can alternatively qualify for a
credit of $0.0031 per share for orders in Tape A and Tape C
securities that provide displayed liquidity if such ETP Holder meets
the requirements of Tier 2 and, (1) executes providing volume equal
to at least 0.30% of US CADV, (2) executes removing volume equal to
at least 0.285% of US CADV, and (3) executes Market-On-Close and
Limit-On-Close Orders executed in a Closing Auction of at least
0.075% of US CADV.
\8\ Under Tier 2, ETP Holders can alternatively qualify for a
credit of $0.0024 per share for orders in Tape B securities that
provide displayed liquidity if such ETP Holder meets the
requirements of Tier 2 and, (1) executes providing volume equal to
at least 0.30% of US CADV, (2) executes removing volume equal to at
least 0.285% of US CADV, and (3) executes Market-On-Close and Limit-
On-Close Orders executed in a Closing Auction of at least 0.075% of
US CADV. Pursuant to the LMM Transaction Fees and Credits pricing
program, ETP Holders affiliated with LMMs can receive an additional
credit when such ETP Holders provide displayed liquidity to the Book
in Tape B securities based on the number of Less Active ETP
Securities in which the LMM is registered as the LMM.
---------------------------------------------------------------------------
Accordingly, the Exchange proposes to delete the following fees and
credits applicable to Tape A and Tape C securities under Tier 2 of the
Fee Schedule, all of which currently appear under Basic Rates on the
Fee Schedule:
$0.0030 per share (fee) for orders that take liquidity
from the Book.
For Mid-Point Liquidity (``MPL'') orders providing
liquidity to the Book:
[cir] $0.0015 per share (credit) in Tape A Securities and $0.0020
per share (credit) in Tape C Securities if provided liquidity in MPL
Orders for Tape A, Tape B and Tape C Securities combined (``MPL Adding
ADV'') during the billing month is at least 3 million shares;
[cir] $0.0015 per share (credit) in Tape A Securities and Tape C
Securities if MPL Adding ADV during the billing month is at least 1.5
million shares and less than 3 million shares;
[cir] $0.0010 per share (credit) in Tape A and Tape C Securities.
$0.0030 per share (fee) for MPL orders removing liquidity
from the Book that are not designated as ``Retail Orders'' defined
below.
$0.0010 per share (fee) for MPL orders removing liquidity
from the Book that are designated Retail Orders.
$0.0015 per share (fee) for Market and Auction-Only Orders
executed in an Early Open Auction, Core Open Auction or Trading Halt
Auction, capped at $20,000 per month per Equity Trading Permit ID.
No fee or credit for Limit Non-Displayed Orders that
provide liquidity to the Book.
$0.0030 per share (fee) for Limit Non-Displayed Orders
that take liquidity from the Book.
Additionally, the Exchange proposes to delete the following fees
and credits applicable to Tape A securities under Tier 2 of the Fee
Schedule:
$0.0012 per share (credit) for PO Orders that provide
liquidity to the NYSE.
$0.0010 per share (fee) for PO Orders routed to the NYSE
that execute in the opening or closing auction.
Finally, under Tier 2, the Fee Schedule currently provides for a
fee of $0.0029 per share for orders in Tape B securities that take
liquidity from the Book, and a fee of $0.0029 per share for Limit Non-
Displayed Orders that take liquidity from the Book. The Exchange
proposes to merge these two fees into a single fee by adding the words
``including Limit Non-Displayed Limit Orders'' to the former fee and
deleting the text of the latter from the Fee Schedule. In addition,
similar to the statement that currently appears at the end of Tier 3 of
the Fee Schedule, the Exchange proposes to add the words ``For all
other fees and credits, Basic Rates apply'' at the end of Tier 2 to
clarify that the rates that are proposed for deletion would continue to
apply to ETP Holders that qualify for Tier 2 for all of their other
trading activity. The Exchange also proposes to delete the following
fees and credits applicable to Tape B securities under Tier 2 as each
are duplicative and currently appear under Basic Rates:
No per share (credit) for PO orders routed to NYSE
American that provide liquidity to the NYSE American Book.
MPL orders providing liquidity to the Book:
[cir] $0.0020 per share (credit) if MPL Adding ADV during the
billing month is at least 3 million shares;
[cir] $0.0015 per share (credit) if MPL Adding ADV during the
billing month is at least 1.5 million shares and less than 3 million
shares;
[cir] $0.0010 per share (credit) if MPL Adding ADV during the
billing month is less than 1.5 million shares.
$0.0030 per share (fee) for MPL orders removing liquidity
from the Book that are not designated as Retail Orders.
$0.0010 per share (fee) for MPL orders removing liquidity
from the Book that are designated as Retail Orders.
$0.0015 per share (fee) for Market and Auction-Only Orders
executed in an Early Open Auction, Core Open Auction or Trading Halt
Auction, capped at $20,000 per month per Equity Trading Permit ID.
$0.0005 per share (fee) for PO Orders routed to NYSE
American that execute in the opening or closing auction.
No fee or credit for Limit Non-Displayed Orders that
provide liquidity to the Book.
Under Tier 3, ETP Holders that provide liquidity an average daily
share volume per month of 0.20% or more, but less than 0.30% of the US
CADV pay a fee of $0.0030 per share for orders, including PO Orders,
routed to any away market that remove liquidity in Tape A, Tape B and
Tape C securities, and receive a credit of $0.0025 per share for orders
that provide liquidity in Tape A and Tape C securities,\9\ or and
$0.0022 per share in Tape B securities.\10\ Additionally, ETP Holders
that qualify for Tier 3 also pay a fee of $0.0010 per share for Market,
Market-On-Close, Limit-On-Close, and Auction-Only Orders executed in a
Closing Auction. All other fees and credits under Tier 3 are identical
to the fees and credits provided under the Basic Rates section of the
Fee Schedule. The Exchange is
[[Page 79238]]
not proposing to adopt any new fees or credits or remove any current
fees or credits under Tier 3 with this proposed rule change.
---------------------------------------------------------------------------
\9\ Under Tier 3, ETP Holder can also receive a credit of
$0.0027 per share for orders in Tape A and Tape C securities if the
ETP Holder meets the requirements of Tier 3 and its ADV of executed
orders that provide liquidity is at least 0.05% of US CADV more than
the ETP Holder's ADV of executed orders that provide liquidity as a
percent of US CADV in May 2019.
\10\ Pursuant to the LMM Transaction Fees and Credits pricing
program, ETP Holders affiliated with LMMs can receive an additional
credit when such ETP Holders provide displayed liquidity to the Book
based on the number of Less Active ETP Securities in which the LMM
is registered as the LMM.
---------------------------------------------------------------------------
Accordingly, the Exchange proposes to delete the following fees and
credits applicable to Tape A and Tape C securities under Tier 3 of the
Fee Schedule, all of which currently appear under Basic Rates on the
Fee Schedule:
$0.0030 per share (fee) for orders that take liquidity
from the Book.
No fee or credit for Limit Non-Displayed Orders that
provide liquidity to the Book.
$0.0030 per share (fee) for Limit Non-Displayed Orders
that take liquidity from the Book.
Additionally, the Exchange proposes to delete the following fee
applicable to Tape A securities under Tier 3 of the Fee Schedule:
$0.0010 per share (fee) for PO Orders routed to the NYSE
that execute in the opening or closing auction.
Finally, under Tier 3, the Fee Schedule currently provides for a
fee of $0.0029 per share for orders in Tape B securities that take
liquidity from the Book, and a fee of $0.0029 per share for Limit Non-
Displayed Orders that take liquidity from the Book. The Exchange
proposes to merge these two fees into a single fee by adding the words
``including Limit Non-Displayed Limit Orders'' to the former fee and
deleting the text of the latter from the Fee Schedule. The Exchange
also proposes to delete the following fees and credits applicable to
Tape B securities under Tier 3 as it is duplicative and currently
appears under Basic Rates:
No fee or credit for Limit Non-Displayed Orders that
provide liquidity to the Book.
The proposed changes are not otherwise intended to address any
other issues, and the Exchange is not aware of any significant problems
that market participants would have in complying with the proposed
changes.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\11\ in general, and furthers the
objectives of Sections 6(b)(4) and(5) of the Act,\12\ 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.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78f(b).
\12\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
The Exchange believes that the proposed rule change to streamline
the Fee Schedule by deleting redundant rule text is reasonable because
each of the fees and credits proposed for deletion currently appear
under the Basic Rates section of the Fee Schedule which is the more
appropriate place for such fees and credits. The Exchange believes
providing the base rates under the Basic Rates section of the Fee
Schedule would promote clarity to the Fee Schedule and reduce confusion
to ETP Holders as to which fees and credits are applicable to their
trading activity on the Exchange. The Exchange believes it is
reasonable to delete the redundant fees and credits from Tier 1, Tier 2
and Tier 3 of the Fee Schedule and therefore, streamline the Fee
Schedule to promote clarity and reduce confusion as to the
applicability of fees and credits that ETP Holders would be subject to.
The Exchange believes deleting redundant fees and credits would also
simplify the Fee Schedule. The Exchange believes that deleting
redundant fees and credits from Tier 1, Tier 2 and Tier of the Fee
Schedule is equitable and not unfairly discriminatory because the
resulting streamlined Fee Schedule would continue to apply to ETP
Holders as it does currently because the Exchange is not adopting any
new fees or credits or removing any current fees or credits from the
Fee Schedule. All ETP Holders would continue to be subject to the same
fees and credits that currently apply to them.
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
In accordance with Section 6(b)(8) of the Act,\13\ the Exchange
believes that the proposed rule change would not impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act.
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\13\ 15 U.S.C. 78f(b)(8).
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Intramarket Competition. The Exchange's proposal to delete
redundant fees and credits from Tier 1, Tier 2 and Tier 3 of the Fee
Schedule will not place any undue burden on intramarket competition
that is not necessary or appropriate in furtherance of the purposes of
the Act because all ETP Holders would continue to be subject to the
same fees and credits that currently apply to them. To the extent the
proposed rule change places a burden on competition, any such burden
would be outweighed by the fact that a streamlined Fee Schedule would
promote clarity and reduce confusion with respect to the fees and
credits that ETP Holders would be subject to.
Intermarket Competition. The Exchange believes the proposed rule
change does not impose any burden on intermarket competition that is
not necessary or appropriate in furtherance of the purposes of the Act.
The Exchange operates in a highly competitive market in which market
participants can readily choose to send their orders to other exchanges
and off-exchange venues if they deem fee levels at those other venues
to be more favorable. Market share statistics provide ample evidence
that price competition between exchanges is fierce, with liquidity and
market share moving freely from one execution venue to another in
reaction to pricing changes.
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) \14\ of the Act and subparagraph (f)(2) of Rule
19b-4 \15\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
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\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 17 CFR 240.19b-4(f)(2).
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At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \16\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\16\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
[[Page 79239]]
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-2020-101 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-2020-101. 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-2020-101, and should be
submitted on or before December 30, 2020.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-26990 Filed 12-8-20; 8:45 am]
BILLING CODE 8011-01-P
