Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Reformat the Section of the NYSE Price List Setting Forth Credits Applicable to Supplemental Liquidity Providers, 36169-36172 [2021-14500]
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36169
Federal Register / Vol. 86, No. 128 / Thursday, July 8, 2021 / Notices
Dated: July 2, 2021.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–14579 Filed 7–7–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–92308; File No. SR–NYSE–
2021–37]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Reformat
the Section of the NYSE Price List
Setting Forth Credits Applicable to
Supplemental Liquidity Providers
July 1, 2021.
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 June 21,
2021, New York Stock Exchange LLC
(‘‘NYSE’’ 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 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 reformat
the section of the NYSE Price List
setting forth Credits Applicable to
Supplemental Liquidity Providers
(‘‘SLPs’’) without any substantive
changes. The Exchange proposes to
implement the fee changes effective
immediately. 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 the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to reformat
the section of the NYSE Price List
setting forth Credits Applicable to SLPs
without any substantive changes. The
Exchange proposes to implement the fee
changes effective immediately.
The Exchange proposes the following
non-substantive changes to reorganize
and enhance the presentation in the
Price List in order to add clarity and
transparency, thereby making the Price
List easier to navigate.
First, the Exchange would delete the
current presentation of the SLP rates
and requirements except for the basic
rate, which would remain unchanged.
The Exchange would also delete
footnotes **, 8 and + that, as discussed
below, would be relocated to new
section marked ‘‘General.’’ Footnote 8
would be marked ‘‘Reserved’’ to
preserve the current footnote numbering
in the Price List. Footnotes 9 and 10,
which do not appear in the current SLP
section of the Price List, would remain
unchanged.
Second, the Exchange proposes a
table presentation of the current SLP
rates and requirements. The proposed
changes would appear in the Price List
in two tables. The first table would
appear under the new heading ‘‘SLP
Adding Tiers’’ and the phrase ‘‘For SLP
symbols that meet the 10% average
quoting requirement in an assigned
security pursuant to Rule 107B, other
than MPL Orders, in securities with a
per share price of $1.00 or more:’’ from
the current Price List. The table would
summarize the current rates and
requirements for SLP Tiers for Adding
Liquidity (SLP Step Up, SLP Tier 5, SLP
Tier 4, SLP Tier 3, SLP Tier 2, SLP Tier
1A and SLP Tier [sic]) and set forth the
requirements and the tiered display
credits and non-tiered display credits.
The requirements and credits are
unchanged. The proposed changes
would appear as follows in the Price
List:
Minimum requirements
Tier for adding
liquidity
SLP adding ADV % Tape A CADV
SLP Step Up .......
0.085% over April 2018 Baseline
$(0.0018)
$(0.0001)
SLP Tier 5 ..........
0.65% and 0.85% including Non SLP and 250,000 ADV in Retail Price Improvement Orders
(0.00310)
(0.00120)
(0.0029)
(0.00105)
SLP Tier 4 ..........
First 2 calendar months as an SLP OR ......
I
0.03% and averaging less than 0.01% in
each of the prior 3 months.
Tiered
non display
credit
SLP Tier 3 ..........
0.20%
(0.0023)
(0.0006)
SLP Tier 2 ..........
0.45%
(0.0026)
(0.0009)
SLP Tier 1A ........
0.60%
(0.00275)
(0.00105)
(0.0029)
(0.0012)
SLP Tier 1 ..........
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Tiered
display
credit
0.90% ...........................................................
I
1 15
U.S.C. 78s(b)(1).
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0.75% if qualifying for SLP Cross Tape Incentive Tier 1.
U.S.C. 78a.
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Federal Register / Vol. 86, No. 128 / Thursday, July 8, 2021 / Notices
Following the proposed chart, the
Exchange would include three bullets,
as follows.
Bullet 1 would clarify that for SLPs
that are also DMMs and subject to Rule
107B(i)(2)(A), the above SLP Tier 1, Tier
1A, Tier 2, Tier 3, Tier 4, Tier 5 and
Step Up Tier requirements are after a
discount of the percentage for the prior
quarter of NYSE CADV in DMM
assigned securities as of the last
business day of the prior month. This is
unchanged from the current Price List.
Bullet 2 would include text clarifying
that SLPs that meet the requirements of
one of the above tiers (Tiers 1A, 2, 3, 4
and the SLP Step Up Tier) and add
liquidity in Tapes B and C securities of
at least 0.25% of Tape B and Tape C
CADV combined, will receive an
additional credit of $0.0001 if at SLP
Step Up Tier, SLP Tier 3, SLP Tier 2,
SLP Tier 1A OR $0.00005 if at SLP Tier
1, SLP Tier 4 and SLP Tier 5. This is
unchanged from the current Price List.
Bullet 3 would provide that in SLP
Tier 1 and Tier 5, SLPs will receive an
additional $0.00005 per share for adding
liquidity, other than MPL and NonDisplay Reserve orders, in securities
where they are not assigned as an SLP
or do not meet the 10% average or more
quoting requirement in an assigned
security pursuant to Rule 107B. This
information will be transposed without
change from current SLP Tiers 1 and 5
in the Price List.
Following this proposed text, the
Exchange would summarize the current
Incremental SLP Step Up Tiers 1, 2 and
3 credits and requirements, renamed
‘‘SLP Incremental Tier,’’ in the
following chart:
SLP adding
ADV % Tape
A CADV step
up over
baseline
Tier
SLP Incremental Tier 3 ............................................................................................................................................
SLP Incremental Tier 2 ............................................................................................................................................
SLP Incremental Tier1 .............................................................................................................................................
The requirements and tiered
displayed incremental credits
applicable to each incremental step up
are unchanged from the current Price
List.
Proposed footnote * in the proposed
chart would provide that the combined
SLP credits shall not exceed $0.0032 per
share in a billing month, which is the
same languages used in the current
Price List. The footnote would also
clarify that the Baseline for SLP
Incremental Step Up Tiers is the second
quarter of 2018, third quarter of 2018, or
0.100
0.150
0.250
Tiered display
incremental
credit *
$(0.00010)
(0.00020)
(0.00030)
the month of January 2021, whichever is
lowest.
The Exchange would next set forth
the current SLP NBBO Setter Tier
Credits’’ and requirements in the
following chart under a new heading
titled ‘‘SLP NBBO Setter Tier Credits:
Minimum requirements for tapes
A, B and C
SLP NBBO setter tier credit tier for adding liquidity
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Setter
Setter
Setter
Setter
Adding ADV %
Tape ABC
CADV,
including
DMM ADV
NBBO setting
ADV % Tape
ABC CADV,
including DMM
ADV
0.55
0.65
0.95
1.25
0.05
0.09
0.18
0.30
Tier 4 .....................................................................................................
SLP Tier 3 .............................................................................................
SLP Tier 2 .............................................................................................
SLP Tier 1 .............................................................................................
Once again, the rates and
requirements are unchanged from the
current Price List.
The Exchange would transpose the
last two current credits and
requirements in the SLP section of the
Price List for SLPs adding liquidity with
orders designated as ‘‘retail’’ and in all
assigned SLP securities without change
under a new heading titled ‘‘Other
Credits.’’
Finally, the Exchange would
introduce a section titled ‘‘General’’ that
would summarize information from the
current Price List in the form of the
following four bullets.
Bullet 1 would provide that Adding
shares of both an SLP-Prop and an
SLMM of the same or an affiliated
member organization are aggregated and
that quotes of an SLP-Prop and an
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16:47 Jul 07, 2021
Jkt 253001
SLMM of the same member organization
are not be aggregated. This information
will also be transposed without change
from the current SLP tiers.
Bullet 2 would provide that affiliated
member organizations that are SLPs are
eligible for the most favorable rate for
any such security traded in an
applicable month provided that one or
both affiliated member organizations
request and are approved for aggregation
of eligible activity pursuant to the
requirements set forth in this Price List.
This information will also be transposed
without change from current footnote +,
which the Exchange proposes to delete.
Bullet 3 would provide that in a
month where NYSE CADV equals or
exceeds 5.5 billion shares per day for
the billing month, NYSE CADV for that
month will be subject to a cap of 5.5
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Frm 00096
Fmt 4703
Sfmt 4703
Tiered credit
for Setting
NBBO
(ASP)
$(0.00350)
(0.00360)
(0.00370)
(0.00380)
Tiered credit
for other
displayed add
$(0.00305)
(0.00310)
(0.00320)
(0.00330)
billion shares per day for the billing
month. In a month where Tape B and
Tape C CADV combined equals or
exceeds 6.0 billion shares per day for
the billing month, Tape B and Tape C
CADV combined for that month will be
subject to a cap of 6.0 billion shares per
day for the billing month. This
information will also be transposed
without change from current footnote
**, which will be deleted as redundant.
Finally, bullet 4 would provide that
SLPs becoming DMMs after the
beginning of a billing month would not
be eligible until the next full billing
month. This information will also be
transposed without change from current
footnote 8 of the Price List. As noted,
current footnote 8 will be deleted and
marked ‘‘Reserved’’ to maintain the
current footnote numbering.
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Federal Register / Vol. 86, No. 128 / Thursday, July 8, 2021 / Notices
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As noted above, the Exchange is not
proposing any substantive change to any
current SLP fee, credit or requirement.
The purpose of the proposed rule
change is to make a non-substantive
change to reorganize the presentation of
the Price List in order to enhance its
clarity and transparency, thereby
making the Price List easier to
comprehend and navigate.
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 the proposed
rule change is consistent with the
Securities Exchange Act of 1934 (the
‘‘Act’’) and the rules and regulations
thereunder applicable to the Exchange
and, in particular, the requirements of
Section 6(b) of the Act.4 Specifically,
the Exchange believes the proposed rule
change is consistent with Section 6(b)(4)
of the Act,5 which provides that
Exchange rules may provide for the
equitable allocation of reasonable dues,
fees, and other charges among its
members and other persons using its
facilities. Additionally, the Exchange
believes the proposed rule change is
consistent with the Section 6(b)(5) 6
requirement that the rules of an
exchange not be designed to permit
unfair discrimination between
customers, issuers, brokers, or dealers.
The Exchange believes that the
proposed changes are reasonable and
equitable because they are clarifying
and non-substantive, and the Exchange
is not changing any current fees or
credits that apply to SLP trading activity
on the Exchange or to routed
executions. The changes are designed to
make the Price List easier to read and
more user-friendly. The Exchange
believes that this proposed format will
provide additional transparency of
Exchange fees and credits for SLPs, to
the benefit of market participants and
the investing public. The Exchange
believes the change is reasonable and
would not be inconsistent with the
public interest and the protection of
investors because investors will not be
harmed and in fact would benefit from
increased clarity and transparency on
the Price List, thereby reducing
potential confusion.
The Exchange also believes that the
proposal is non-discriminatory because
it applies uniformly to all member
4 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
6 15 U.S.C. 78f(b)(5).
organizations that are SLPs, and again,
the Exchange is not making any changes
to existing fees and credits. Finally, the
Exchange believes that the reformatted
Price List, as proposed, will be clearer
and less confusing for investors and will
eliminate potential confusion, thereby
removing impediments to and
perfecting the mechanism of a free and
open market and a national market
system, and, in general, protecting
investors and the public interest.
The Exchange believes that the
proposed reformatted the Price List is
equitable and not unfairly
discriminatory because the resulting
streamlined Price List would continue
to apply to all SLPs as it does currently
because the Exchange is not adopting
any new fees or credits or removing any
current fees or credits that impact SLPs.
All SLPs 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,7 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 reformat its
Price List 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 SLPs would continue to be
subject to the same fees and credits that
currently apply to them. The Exchange
notes that the proposal does not change
the amount of any current fees or
rebates, but rather makes clarifying and
formatting changes, and therefore does
not raise any competitive issues. To the
extent the proposed rule change places
a burden on competition, any such
burden would be outweighed by the fact
that a streamlined Price List would
promote clarity and reduce confusion
with respect to the fees and credits that
SLPs would be subject to. As noted, the
proposal would apply to all similarly
situated member organizations on the
same and equal terms, who would
benefit from the changes on the same
basis. Accordingly, the proposed change
would not impose a disparate burden on
competition among market participants
on the Exchange.
Intermarket Competition. The
Exchange believes the proposed rule
5 15
VerDate Sep<11>2014
16:47 Jul 07, 2021
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.
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) 8 of the Act and
subparagraph (f)(2) of Rule 19b–4 9
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) 10 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
8 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
10 15 U.S.C. 78s(b)(2)(B).
9 17
7 15
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U.S.C. 78f(b)(8).
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Federal Register / Vol. 86, No. 128 / Thursday, July 8, 2021 / Notices
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NYSE–2021–37 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–NYSE–2021–37. 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–NYSE–2021–37 and should
be submitted on or before July 29, 2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–14500 Filed 7–7–21; 8:45 am]
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BILLING CODE 8011–01–P
11 17
CFR 200.30–3(a)(12).
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SECURITIES AND EXCHANGE
COMMISSION
[Extension: Rule 17g–8 & 9; OMB Control
No. 3235–0693]
Submission for OMB Review;
Comment Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736.
Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for approval of
extension of the previously approved
collection of information provided for in
Rule 17g–8 and 17g–9 (17 CFR 240.17g–
8 and 9) under the Securities Exchange
Act of 1934 (15 U.S.C. 78a et seq.)
(‘‘Exchange Act’’).
Rule 17g–8 contains certain
requirements for Nationally Recognized
Statistical Rating Organizations
(‘‘NRSROs’’) to have policies and
procedures with respect to the
procedures and methodologies the
NRSRO uses to determine credit ratings,
with respect to the symbols, numbers, or
scores it uses to denote credit ratings, to
address instances in which a look-back
review determines that a conflict of
interest influenced a credit rating, and
to consider certain prescribed factors for
an effective internal structure. Rule 17g–
9 contains requirements for NRSROs to
ensure that any person employed by an
NRSRO to determine credit ratings
meets standards necessary to produce
accurate ratings. Currently, there are 9
credit rating agencies registered as
NRSROs with the Commission. The
Commission estimates that the total
burden for respondents to comply with
Rule 17g–8 is 1,305 hours and to
comply with Rule 17g–9 is 32,335
hours.
An agency may not conduct or
sponsor a collection of information
unless it displays a currently valid OMB
control number. No person shall be
subject to any penalty for failing to
comply with a collection of information
subject to the PRA that does not display
a valid OMB control number.
The public may view background
documentation for this information
collection at the following website:
>www.reginfo.gov<. Find this particular
information collection by selecting
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by using the
search function. Written comments and
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recommendations for the proposed
information collection should be sent
within 30 days of publication of this
notice to (i) >www.reginfo.gov/public/
do/PRAMain< and (ii) David Bottom,
Director/Chief Information Officer,
Securities and Exchange Commission,
c/o Cynthia Roscoe, 100 F Street NE,
Washington, DC 20549, or by sending an
email to: PRA_Mailbox@sec.gov.
Dated: July 2, 2021.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–14581 Filed 7–7–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Extension: Rule 17g–5, OMB Control No.
3235–0649]
Submission for OMB Review;
Comment Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for approval of
extension of the previously approved
collection of information provided for in
Rule 17g–5 (17 CFR 240.17g–5) under
the Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.) (‘‘Exchange Act’’).
Rule 17g–5 requires the disclosure of
and establishment of procedures to
manage certain NRSRO conflicts of
interest, prohibits certain other NRSRO
conflicts of interest, and contains
requirements regarding the disclosure of
information in the case of the conflict of
interest of an NRSRO issuing or
maintaining a credit rating on an assetbacked security that was paid for by the
issuer, sponsor, or underwriter of the
security. The Commission currently
estimates that the total annual burden
for respondents to comply with Rule
17g–5 is 263,306 hours.
An agency may not conduct or
sponsor a collection of information
unless it displays a currently valid OMB
control number. No person shall be
subject to any penalty for failing to
comply with a collection of information
subject to the PRA that does not display
a valid OMB control number.
The public may view background
documentation for this information
collection at the following website:
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]]>Agencies
[Federal Register Volume 86, Number 128 (Thursday, July 8, 2021)]
[Notices]
[Pages 36169-36172]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-14500]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-92308; File No. SR-NYSE-2021-37]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Reformat the Section of the NYSE Price List Setting Forth Credits
Applicable to Supplemental Liquidity Providers
July 1, 2021.
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 June 21, 2021, New York Stock Exchange LLC (``NYSE'' 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 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 reformat the section of the NYSE Price
List setting forth Credits Applicable to Supplemental Liquidity
Providers (``SLPs'') without any substantive changes. The Exchange
proposes to implement the fee changes effective immediately. 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to reformat the section of the NYSE Price
List setting forth Credits Applicable to SLPs without any substantive
changes. The Exchange proposes to implement the fee changes effective
immediately.
The Exchange proposes the following non-substantive changes to
reorganize and enhance the presentation in the Price List in order to
add clarity and transparency, thereby making the Price List easier to
navigate.
First, the Exchange would delete the current presentation of the
SLP rates and requirements except for the basic rate, which would
remain unchanged. The Exchange would also delete footnotes **, 8 and +
that, as discussed below, would be relocated to new section marked
``General.'' Footnote 8 would be marked ``Reserved'' to preserve the
current footnote numbering in the Price List. Footnotes 9 and 10, which
do not appear in the current SLP section of the Price List, would
remain unchanged.
Second, the Exchange proposes a table presentation of the current
SLP rates and requirements. The proposed changes would appear in the
Price List in two tables. The first table would appear under the new
heading ``SLP Adding Tiers'' and the phrase ``For SLP symbols that meet
the 10% average quoting requirement in an assigned security pursuant to
Rule 107B, other than MPL Orders, in securities with a per share price
of $1.00 or more:'' from the current Price List. The table would
summarize the current rates and requirements for SLP Tiers for Adding
Liquidity (SLP Step Up, SLP Tier 5, SLP Tier 4, SLP Tier 3, SLP Tier 2,
SLP Tier 1A and SLP Tier [sic]) and set forth the requirements and the
tiered display credits and non-tiered display credits. The requirements
and credits are unchanged. The proposed changes would appear as follows
in the Price List:
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Minimum requirements
----------------------------------------------------------------------------------------------------------------
Tier for adding liquidity SLP adding ADV % Tape A CADV Tiered Tiered
display non display
credit credit
----------------------------------------------------------------------------------------------------------------
SLP Step Up................... 0.085% over April 2018 Baseline $(0.0018) $(0.0001)
----------------------------------------------------------------------------------------------------------------
SLP Tier 5.................... 0.65% and 0.85% including Non SLP and 250,000 (0.00310) (0.00120)
ADV in Retail Price Improvement Orders
----------------------------------------------------------------------------------------------------------------
SLP Tier 4.................... First 2 calendar months 0.03% and averaging (0.0029) (0.00105)
as an SLP OR. less than 0.01% in
each of the prior 3
months.
----------------------------------------------------------------------------------------------------------------
SLP Tier 3.................... 0.20% (0.0023) (0.0006)
----------------------------------------------------------------------------------------------------------------
SLP Tier 2.................... 0.45% (0.0026) (0.0009)
----------------------------------------------------------------------------------------------------------------
SLP Tier 1A................... 0.60% (0.00275) (0.00105)
----------------------------------------------------------------------------------------------------------------
SLP Tier 1.................... 0.90%.................. 0.75% if qualifying for (0.0029) (0.0012)
SLP Cross Tape
Incentive Tier 1.
----------------------------------------------------------------------------------------------------------------
[[Page 36170]]
Following the proposed chart, the Exchange would include three
bullets, as follows.
Bullet 1 would clarify that for SLPs that are also DMMs and subject
to Rule 107B(i)(2)(A), the above SLP Tier 1, Tier 1A, Tier 2, Tier 3,
Tier 4, Tier 5 and Step Up Tier requirements are after a discount of
the percentage for the prior quarter of NYSE CADV in DMM assigned
securities as of the last business day of the prior month. This is
unchanged from the current Price List.
Bullet 2 would include text clarifying that SLPs that meet the
requirements of one of the above tiers (Tiers 1A, 2, 3, 4 and the SLP
Step Up Tier) and add liquidity in Tapes B and C securities of at least
0.25% of Tape B and Tape C CADV combined, will receive an additional
credit of $0.0001 if at SLP Step Up Tier, SLP Tier 3, SLP Tier 2, SLP
Tier 1A OR $0.00005 if at SLP Tier 1, SLP Tier 4 and SLP Tier 5. This
is unchanged from the current Price List.
Bullet 3 would provide that in SLP Tier 1 and Tier 5, SLPs will
receive an additional $0.00005 per share for adding liquidity, other
than MPL and Non-Display Reserve orders, in securities where they are
not assigned as an SLP or do not meet the 10% average or more quoting
requirement in an assigned security pursuant to Rule 107B. This
information will be transposed without change from current SLP Tiers 1
and 5 in the Price List.
Following this proposed text, the Exchange would summarize the
current Incremental SLP Step Up Tiers 1, 2 and 3 credits and
requirements, renamed ``SLP Incremental Tier,'' in the following chart:
------------------------------------------------------------------------
SLP adding ADV
% Tape A CADV Tiered display
Tier step up over incremental
baseline credit *
------------------------------------------------------------------------
SLP Incremental Tier 3.................. 0.100 $(0.00010)
SLP Incremental Tier 2.................. 0.150 (0.00020)
SLP Incremental Tier1................... 0.250 (0.00030)
------------------------------------------------------------------------
The requirements and tiered displayed incremental credits
applicable to each incremental step up are unchanged from the current
Price List.
Proposed footnote * in the proposed chart would provide that the
combined SLP credits shall not exceed $0.0032 per share in a billing
month, which is the same languages used in the current Price List. The
footnote would also clarify that the Baseline for SLP Incremental Step
Up Tiers is the second quarter of 2018, third quarter of 2018, or the
month of January 2021, whichever is lowest.
The Exchange would next set forth the current SLP NBBO Setter Tier
Credits'' and requirements in the following chart under a new heading
titled ``SLP NBBO Setter Tier Credits:
----------------------------------------------------------------------------------------------------------------
Minimum requirements for tapes
A, B and C
--------------------------------
SLP NBBO setter tier credit tier for adding NBBO setting Tiered credit Tiered credit
liquidity Adding ADV % ADV % Tape ABC for Setting for other
Tape ABC CADV, CADV, NBBO (ASP) displayed add
including DMM including DMM
ADV ADV
----------------------------------------------------------------------------------------------------------------
Setter Tier 4................................... 0.55 0.05 $(0.00350) $(0.00305)
Setter SLP Tier 3............................... 0.65 0.09 (0.00360) (0.00310)
Setter SLP Tier 2............................... 0.95 0.18 (0.00370) (0.00320)
Setter SLP Tier 1............................... 1.25 0.30 (0.00380) (0.00330)
----------------------------------------------------------------------------------------------------------------
Once again, the rates and requirements are unchanged from the
current Price List.
The Exchange would transpose the last two current credits and
requirements in the SLP section of the Price List for SLPs adding
liquidity with orders designated as ``retail'' and in all assigned SLP
securities without change under a new heading titled ``Other Credits.''
Finally, the Exchange would introduce a section titled ``General''
that would summarize information from the current Price List in the
form of the following four bullets.
Bullet 1 would provide that Adding shares of both an SLP-Prop and
an SLMM of the same or an affiliated member organization are aggregated
and that quotes of an SLP-Prop and an SLMM of the same member
organization are not be aggregated. This information will also be
transposed without change from the current SLP tiers.
Bullet 2 would provide that affiliated member organizations that
are SLPs are eligible for the most favorable rate for any such security
traded in an applicable month provided that one or both affiliated
member organizations request and are approved for aggregation of
eligible activity pursuant to the requirements set forth in this Price
List. This information will also be transposed without change from
current footnote +, which the Exchange proposes to delete.
Bullet 3 would provide that in a month where NYSE CADV equals or
exceeds 5.5 billion shares per day for the billing month, NYSE CADV for
that month will be subject to a cap of 5.5 billion shares per day for
the billing month. In a month where Tape B and Tape C CADV combined
equals or exceeds 6.0 billion shares per day for the billing month,
Tape B and Tape C CADV combined for that month will be subject to a cap
of 6.0 billion shares per day for the billing month. This information
will also be transposed without change from current footnote **, which
will be deleted as redundant.
Finally, bullet 4 would provide that SLPs becoming DMMs after the
beginning of a billing month would not be eligible until the next full
billing month. This information will also be transposed without change
from current footnote 8 of the Price List. As noted, current footnote 8
will be deleted and marked ``Reserved'' to maintain the current
footnote numbering.
[[Page 36171]]
As noted above, the Exchange is not proposing any substantive
change to any current SLP fee, credit or requirement. The purpose of
the proposed rule change is to make a non-substantive change to
reorganize the presentation of the Price List in order to enhance its
clarity and transparency, thereby making the Price List easier to
comprehend and navigate.
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 the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\4\ Specifically, the
Exchange believes the proposed rule change is consistent with Section
6(b)(4) of the Act,\5\ which provides that Exchange rules may provide
for the equitable allocation of reasonable dues, fees, and other
charges among its members and other persons using its facilities.
Additionally, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \6\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(4).
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange believes that the proposed changes are reasonable and
equitable because they are clarifying and non-substantive, and the
Exchange is not changing any current fees or credits that apply to SLP
trading activity on the Exchange or to routed executions. The changes
are designed to make the Price List easier to read and more user-
friendly. The Exchange believes that this proposed format will provide
additional transparency of Exchange fees and credits for SLPs, to the
benefit of market participants and the investing public. The Exchange
believes the change is reasonable and would not be inconsistent with
the public interest and the protection of investors because investors
will not be harmed and in fact would benefit from increased clarity and
transparency on the Price List, thereby reducing potential confusion.
The Exchange also believes that the proposal is non-discriminatory
because it applies uniformly to all member organizations that are SLPs,
and again, the Exchange is not making any changes to existing fees and
credits. Finally, the Exchange believes that the reformatted Price
List, as proposed, will be clearer and less confusing for investors and
will eliminate potential confusion, thereby removing impediments to and
perfecting the mechanism of a free and open market and a national
market system, and, in general, protecting investors and the public
interest.
The Exchange believes that the proposed reformatted the Price List
is equitable and not unfairly discriminatory because the resulting
streamlined Price List would continue to apply to all SLPs as it does
currently because the Exchange is not adopting any new fees or credits
or removing any current fees or credits that impact SLPs. All SLPs
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,\7\ 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.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------
Intramarket Competition. The Exchange's proposal to reformat its
Price List 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 SLPs would continue to be subject to the same fees
and credits that currently apply to them. The Exchange notes that the
proposal does not change the amount of any current fees or rebates, but
rather makes clarifying and formatting changes, and therefore does not
raise any competitive issues. To the extent the proposed rule change
places a burden on competition, any such burden would be outweighed by
the fact that a streamlined Price List would promote clarity and reduce
confusion with respect to the fees and credits that SLPs would be
subject to. As noted, the proposal would apply to all similarly
situated member organizations on the same and equal terms, who would
benefit from the changes on the same basis. Accordingly, the proposed
change would not impose a disparate burden on competition among market
participants on the Exchange.
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) \8\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \9\ thereunder, because it establishes a due, fee, or other charge
imposed by the Exchange.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 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) \10\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------
\10\ 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
[[Page 36172]]
Send an email to [email protected]. Please include
File Number SR-NYSE-2021-37 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-NYSE-2021-37. 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-NYSE-2021-37 and should be submitted on
or before July 29, 2021.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-14500 Filed 7-7-21; 8:45 am]
BILLING CODE 8011-01-P
