Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its Price List, 3464-3466 [2024-00846]
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3464
Federal Register / Vol. 89, No. 12 / Thursday, January 18, 2024 / Notices
of the overall market. Based on publicly
available information, no single options
exchange has more than 12% of the
market share.15 Therefore, no exchange
possesses significant pricing power in
the execution of option order flow.
Indeed, participants can readily choose
to send their orders to other exchange
and off-exchange venues if they deem
fee levels at those other venues to be
more favorable. Moreover, 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.’’ 16 The
fact that this market is competitive has
also long been recognized by the courts.
In NetCoalition v. Securities and
Exchange Commission, the D.C. Circuit
stated as follows: ‘‘[n]o one disputes
that competition for order flow is
‘fierce.’ . . . As the SEC explained, ‘[i]n
the U.S. national market system, buyers
and sellers of securities, and the brokerdealers that act as their order-routing
agents, have a wide range of choices of
where to route orders for execution’;
[and] ‘no exchange can afford to take its
market share percentages for granted’
because ‘no exchange possesses a
monopoly, regulatory or otherwise, in
the execution of order flow from broker
dealers’. . . .’’.17 Accordingly, the
Exchange does not believe its proposed
fee change imposes any burden on
competition that is not necessary or
appropriate in furtherance of the
purposes of the Act.
khammond on DSKJM1Z7X2PROD with NOTICES
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange neither solicited nor
received comments on the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
15 See
supra note 10.
Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005).
17 NetCoalition v. SEC, 615 F.3d 525, 539 (D.C.
Cir. 2010) (quoting Securities Exchange Act Release
No. 59039 (December 2, 2008), 73 FR 74770, 74782–
83 (December 9, 2008) (SR–NYSEArca-2006–21)).
16 See
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of the Act 18 and paragraph (f) of Rule
19b–4 19 thereunder. 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 will 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–
CboeEDGX–2024–008 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–CboeEDGX–2024–008. 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
a.m. and 3 p.m. Copies of the filing also
will be available for inspection and
copying at the principal office of the
Exchange. Do not include personal
identifiable information in submissions;
you should submit only information
that you wish to make available
publicly. We may redact in part or
withhold entirely from publication
submitted material that is obscene or
subject to copyright protection. All
submissions should refer to file number
SR–CboeEDGX–2024–008 and should be
submitted on or before February 8, 2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–00850 Filed 1–17–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–99323; File No. SR–NYSE–
2024–02]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend Its
Price List
January 11, 2024.
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 January 2,
2024, New York Stock Exchange LLC
(‘‘NYSE’’ or the ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the selfregulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
Price List to (1) extend a fee waiver for
new firm application fees for applicants
seeking only to obtain a bond trading
license (‘‘BTL’’) for 2024; and (2) waive
the BTL fee for 2024. The Exchange
proposes to implement the fee changes
effective January 2, 2024. The proposed
rule change is available on the
Exchange’s website at www.nyse.com, at
the principal office of the Exchange, and
20 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
18 15
19 17
PO 00000
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
Frm 00095
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18JAN1
Federal Register / Vol. 89, No. 12 / Thursday, January 18, 2024 / Notices
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.
khammond on DSKJM1Z7X2PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
as a member organization and has had
the New Firm Fee waived converts a
BTL to a full trading license within one
year of approval, the New Firm Fee
would be charged in full retroactively.
The Exchange believes that charging the
New Firm Fee retroactively within a
year of approval is appropriate because
it would discourage applicants to claim
that they are applying for a BTL solely
to avoid New Firm Fees.
Additionally, the Exchange currently
charges a BTL fee of $1,000 per year.
The Exchange proposes to amend the
Price List to waive the BTL fee for 2024
for all member organizations.
The Exchange believes that the
proposed fee changes would provide
increased incentives for bond trading
firms that are not currently Exchange
member organizations to apply for
Exchange membership and a BTL. The
Exchange believes that having more
member organizations trading on the
Exchange’s bond platform would benefit
investors through the additional display
of liquidity and increased execution
opportunities in Exchange-traded bonds
at the Exchange.
1. Purpose
The Exchange proposes to amend its
Price List to (1) extend a fee waiver for
new firm application fees for applicants
seeking only to obtain a BTL for 2024;
and (2) waive the BTL fee for 2024.4 The
Exchange proposes to implement the fee
changes effective January 2, 2024.
The Exchange currently charges a
New Firm Fee ranging from $2,000 to
$4,000, depending on the type of firm,
which is charged per application for any
broker-dealer that applies to be
approved as an Exchange member
organization. The Exchange proposes to
amend the Price List to waive the New
Firm Fee for 2024 for new member
organization applicants that are seeking
only to obtain a BTL and not trade
equities at the Exchange. The proposed
waiver of the New Firm Fee would be
available only to applicants seeking
approval as a new member organization,
including carrying firms, introducing
firms, or non-public organizations,
which would be seeking to obtain a BTL
at the Exchange and not trade equities.
Further, if a new firm that is approved
The Exchange proposes to amend its
Price List to (1) extend a fee waiver for
new firm application fees for applicants
seeking only to obtain a BTL for 2024;
and (2) waive the BTL fee for 2024.5 The
Exchange proposes to implement the fee
changes effective January 2, 2024.
The Exchange currently charges a
New Firm Fee ranging from $2,000 to
$4,000, depending on the type of firm,
which is charged per application for any
broker-dealer that applies to be
approved as an Exchange member
organization. The Exchange proposes to
amend the Price List to waive the New
Firm Fee for 2024 for new member
organization applicants that are seeking
only to obtain a BTL and not trade
equities at the Exchange. The proposed
waiver of the New Firm Fee would be
available only to applicants seeking
4 The Exchange initially filed to adopt the fee
waiver and waive the BTL fee in 2015. See
Securities Exchange Act Release No. 74031 (January
12, 2015), 80 FR 2462 (January 16, 2015) (SR–
NYSE–2014–78). The Exchange has filed to extend
the fee waiver and waive the BTL fee for each
calendar year since 2017. See Securities Exchange
Act Release Nos. 79710 (December 29, 2016), 82 FR
1395 (January 5, 2017) (SR–NYSE–2016–89); 82418
(December 28, 2017), 83 FR 568 (January 4, 2018)
(SR–NYSE–2017–70); 84899 (December 20, 2018),
83 FR 67395 (December 28, 2018) (SR–NYSE–2018–
65); 87952 (January 13, 2020), 85 FR 3089 (January
17, 2020) (SR–NYSE–2019–73); 90891 (January 11,
2021), 86 FR 4147 (January 15, 2021) (SR–NYSE–
2021–03); 93992 (January 18, 2022), 87 FR 3635
(January 24, 2022) (SR–NYSE–2022–01); and 96622
(January 10, 2023), 88 FR 2697 (January 17, 2023)
(SR–NYSE–2023–01).
5 The Exchange initially filed to adopt the fee
waiver and waive the BTL fee in 2015. See
Securities Exchange Act Release No. 74031 (January
12, 2015), 80 FR 2462 (January 16, 2015) (SR–
NYSE–2014–78). The Exchange has filed to extend
the fee waiver and waive the BTL fee for each
calendar year since 2017. See Securities Exchange
Act Release Nos. 79710 (December 29, 2016), 82 FR
1395 (January 5, 2017) (SR–NYSE–2016–89); 82418
(December 28, 2017), 83 FR 568 (January 4, 2018)
(SR–NYSE–2017–70); 84899 (December 20, 2018),
83 FR 67395 (December 28, 2018) (SR–NYSE–2018–
65); 87952 (January 13, 2020), 85 FR 3089 (January
17, 2020) (SR–NYSE–2019–73); 90891 (January 11,
2021), 86 FR 4147 (January 15, 2021) (SR–NYSE–
2021–03); 93992 (January 18, 2022), 87 FR 3635
(January 24, 2022) (SR–NYSE–2022–01); and 96622
(January 10, 2023), 88 FR 2697 (January 17, 2023)
(SR–NYSE–2023–01).
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17:32 Jan 17, 2024
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2. Statutory Basis
PO 00000
Frm 00096
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3465
approval as a new member organization,
including carrying firms, introducing
firms, or non-public organizations,
which would be seeking to obtain a BTL
at the Exchange and not trade equities.
Further, if a new firm that is approved
as a member organization and has had
the New Firm Fee waived converts a
BTL to a full trading license within one
year of approval, the New Firm Fee
would be charged in full retroactively.
The Exchange believes that charging the
New Firm Fee retroactively within a
year of approval is appropriate because
it would discourage applicants to claim
that they are applying for a BTL solely
to avoid New Firm Fees.
Additionally, the Exchange currently
charges a BTL fee of $1,000 per year.
The Exchange proposes to amend the
Price List to waive the BTL fee for 2024
for all member organizations.
The Exchange believes that the
proposed fee changes would provide
increased incentives for bond trading
firms that are not currently Exchange
member organizations to apply for
Exchange membership and a BTL. The
Exchange believes that having more
member organizations trading on the
Exchange’s bond platform would benefit
investors through the additional display
of liquidity and increased execution
opportunities in Exchange-traded bonds
at the Exchange.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
In accordance with Section 6(b)(8) of
the Act,6 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. Debt
securities typically trade in a
decentralized over-the-counter (‘‘OTC’’)
dealer market that is less liquid and
transparent than the equities markets.
The Exchange believes that the
proposed change would increase
competition with these OTC venues by
reducing the cost of being approved as
and operating as an Exchange member
organization that solely trades bonds at
the Exchange, which the Exchange
believes will enhance market quality
through the additional display of
liquidity and increased execution
opportunities in Exchange-traded bonds
at the Exchange.
The Exchange notes that it operates in
a highly competitive market in which
market participants can readily favor
competing venues that are not
transparent. In such an environment,
the Exchange must continually review,
and consider adjusting its fees and
6 15
E:\FR\FM\18JAN1.SGM
U.S.C. 78f(b)(8).
18JAN1
3466
Federal Register / Vol. 89, No. 12 / Thursday, January 18, 2024 / Notices
rebates to remain competitive with other
exchanges as well as with alternative
trading systems and other venues that
are not required to comply with the
statutory standards applicable to
exchanges. Because competitors are free
to modify their own fees and credits in
response, and because market
participants may readily adjust their
order routing practices, the Exchange
believes that the degree to which fee
changes in this market may impose any
burden on competition is extremely
limited. As a result of all of these
considerations, the Exchange does not
believe that the proposed change will
impair the ability of member
organizations or competing order
execution venues to maintain their
competitive standing in the financial
markets.
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 has become
effective upon filing pursuant to Section
19(b)(3)(A) 7 of the Act and paragraph (f)
thereunder. 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.
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:
khammond on DSKJM1Z7X2PROD with NOTICES
• 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–
NYSE–2024–02 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
U.S.C. 78s(b)(3)(A).
VerDate Sep<11>2014
17:32 Jan 17, 2024
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–00846 Filed 1–17–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–99329; File No. SR–
NASDAQ–2024–002]
Electronic Comments:
7 15
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to file
number SR–NYSE–2024–02. 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
a.m. and 3 p.m. Copies of the filing also
will be available for inspection and
copying at the principal office of the
Exchange. Do not include personal
identifiable information in submissions;
you should submit only information
that you wish to make available
publicly. We may redact in part or
withhold entirely from publication
submitted material that is obscene or
subject to copyright protection. All
submissions should refer to file number
SR–NYSE–2024–02 and should be
submitted on or before February 8, 2024.
Self-Regulatory Organizations; The
Nasdaq Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend the
Exchange’s Membership Fee at Equity
7, Section 10
January 11, 2024.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
8 17
Jkt 262001
PO 00000
CFR 200.30–3(a)(12).
Frm 00097
Fmt 4703
Sfmt 4703
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on January 2,
2024, The Nasdaq Stock Market LLC
(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘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 the
Exchange’s Membership Fee at Equity 7,
Section 10.
The text of the proposed rule change
is available on the Exchange’s website at
https://listingcenter.nasdaq.com/
rulebook/nasdaq/rules, at the principal
office of the Exchange, and at the
Commission’s Public Reference Room
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed rule
change is to amend the Exchange’s
Membership Fee at Equity 7, Section 10.
Specifically, the Exchange proposes to
increase its annual membership fee
(‘‘Annual Membership Fee’’) from
$3,000 per year to $4,000 per year. This
fee is assessed on all Nasdaq members
on an annual basis.
Nasdaq has not increased its Annual
Membership Fee since 2007.3 The
Exchange believes the proposed modest
fee increase is warranted to ensure that
its Annual Membership Fee better
reflects the current value of being a
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Exchange Act Release No. 56617 (Oct. 4,
2007), 72 FR 58142 (Oct. 12, 2007) (SR–NASDAQ–
2007–083).
2 17
E:\FR\FM\18JAN1.SGM
18JAN1
]]>Agencies
[Federal Register Volume 89, Number 12 (Thursday, January 18, 2024)]
[Notices]
[Pages 3464-3466]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-00846]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-99323; File No. SR-NYSE-2024-02]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend Its Price List
January 11, 2024.
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 January 2, 2024, New York Stock Exchange LLC (``NYSE'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend its Price List to (1) extend a fee
waiver for new firm application fees for applicants seeking only to
obtain a bond trading license (``BTL'') for 2024; and (2) waive the BTL
fee for 2024. The Exchange proposes to implement the fee changes
effective January 2, 2024. The proposed rule change is available on the
Exchange's website at www.nyse.com, at the principal office of the
Exchange, and
[[Page 3465]]
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 amend its Price List to (1) extend a fee
waiver for new firm application fees for applicants seeking only to
obtain a BTL for 2024; and (2) waive the BTL fee for 2024.\4\ The
Exchange proposes to implement the fee changes effective January 2,
2024.
---------------------------------------------------------------------------
\4\ The Exchange initially filed to adopt the fee waiver and
waive the BTL fee in 2015. See Securities Exchange Act Release No.
74031 (January 12, 2015), 80 FR 2462 (January 16, 2015) (SR-NYSE-
2014-78). The Exchange has filed to extend the fee waiver and waive
the BTL fee for each calendar year since 2017. See Securities
Exchange Act Release Nos. 79710 (December 29, 2016), 82 FR 1395
(January 5, 2017) (SR-NYSE-2016-89); 82418 (December 28, 2017), 83
FR 568 (January 4, 2018) (SR-NYSE-2017-70); 84899 (December 20,
2018), 83 FR 67395 (December 28, 2018) (SR-NYSE-2018-65); 87952
(January 13, 2020), 85 FR 3089 (January 17, 2020) (SR-NYSE-2019-73);
90891 (January 11, 2021), 86 FR 4147 (January 15, 2021) (SR-NYSE-
2021-03); 93992 (January 18, 2022), 87 FR 3635 (January 24, 2022)
(SR-NYSE-2022-01); and 96622 (January 10, 2023), 88 FR 2697 (January
17, 2023) (SR-NYSE-2023-01).
---------------------------------------------------------------------------
The Exchange currently charges a New Firm Fee ranging from $2,000
to $4,000, depending on the type of firm, which is charged per
application for any broker-dealer that applies to be approved as an
Exchange member organization. The Exchange proposes to amend the Price
List to waive the New Firm Fee for 2024 for new member organization
applicants that are seeking only to obtain a BTL and not trade equities
at the Exchange. The proposed waiver of the New Firm Fee would be
available only to applicants seeking approval as a new member
organization, including carrying firms, introducing firms, or non-
public organizations, which would be seeking to obtain a BTL at the
Exchange and not trade equities. Further, if a new firm that is
approved as a member organization and has had the New Firm Fee waived
converts a BTL to a full trading license within one year of approval,
the New Firm Fee would be charged in full retroactively. The Exchange
believes that charging the New Firm Fee retroactively within a year of
approval is appropriate because it would discourage applicants to claim
that they are applying for a BTL solely to avoid New Firm Fees.
Additionally, the Exchange currently charges a BTL fee of $1,000
per year. The Exchange proposes to amend the Price List to waive the
BTL fee for 2024 for all member organizations.
The Exchange believes that the proposed fee changes would provide
increased incentives for bond trading firms that are not currently
Exchange member organizations to apply for Exchange membership and a
BTL. The Exchange believes that having more member organizations
trading on the Exchange's bond platform would benefit investors through
the additional display of liquidity and increased execution
opportunities in Exchange-traded bonds at the Exchange.
2. Statutory Basis
The Exchange proposes to amend its Price List to (1) extend a fee
waiver for new firm application fees for applicants seeking only to
obtain a BTL for 2024; and (2) waive the BTL fee for 2024.\5\ The
Exchange proposes to implement the fee changes effective January 2,
2024.
---------------------------------------------------------------------------
\5\ The Exchange initially filed to adopt the fee waiver and
waive the BTL fee in 2015. See Securities Exchange Act Release No.
74031 (January 12, 2015), 80 FR 2462 (January 16, 2015) (SR-NYSE-
2014-78). The Exchange has filed to extend the fee waiver and waive
the BTL fee for each calendar year since 2017. See Securities
Exchange Act Release Nos. 79710 (December 29, 2016), 82 FR 1395
(January 5, 2017) (SR-NYSE-2016-89); 82418 (December 28, 2017), 83
FR 568 (January 4, 2018) (SR-NYSE-2017-70); 84899 (December 20,
2018), 83 FR 67395 (December 28, 2018) (SR-NYSE-2018-65); 87952
(January 13, 2020), 85 FR 3089 (January 17, 2020) (SR-NYSE-2019-73);
90891 (January 11, 2021), 86 FR 4147 (January 15, 2021) (SR-NYSE-
2021-03); 93992 (January 18, 2022), 87 FR 3635 (January 24, 2022)
(SR-NYSE-2022-01); and 96622 (January 10, 2023), 88 FR 2697 (January
17, 2023) (SR-NYSE-2023-01).
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The Exchange currently charges a New Firm Fee ranging from $2,000
to $4,000, depending on the type of firm, which is charged per
application for any broker-dealer that applies to be approved as an
Exchange member organization. The Exchange proposes to amend the Price
List to waive the New Firm Fee for 2024 for new member organization
applicants that are seeking only to obtain a BTL and not trade equities
at the Exchange. The proposed waiver of the New Firm Fee would be
available only to applicants seeking approval as a new member
organization, including carrying firms, introducing firms, or non-
public organizations, which would be seeking to obtain a BTL at the
Exchange and not trade equities. Further, if a new firm that is
approved as a member organization and has had the New Firm Fee waived
converts a BTL to a full trading license within one year of approval,
the New Firm Fee would be charged in full retroactively. The Exchange
believes that charging the New Firm Fee retroactively within a year of
approval is appropriate because it would discourage applicants to claim
that they are applying for a BTL solely to avoid New Firm Fees.
Additionally, the Exchange currently charges a BTL fee of $1,000
per year. The Exchange proposes to amend the Price List to waive the
BTL fee for 2024 for all member organizations.
The Exchange believes that the proposed fee changes would provide
increased incentives for bond trading firms that are not currently
Exchange member organizations to apply for Exchange membership and a
BTL. The Exchange believes that having more member organizations
trading on the Exchange's bond platform would benefit investors through
the additional display of liquidity and increased execution
opportunities in Exchange-traded bonds at the Exchange.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\6\ 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. Debt securities typically trade in a decentralized
over-the-counter (``OTC'') dealer market that is less liquid and
transparent than the equities markets. The Exchange believes that the
proposed change would increase competition with these OTC venues by
reducing the cost of being approved as and operating as an Exchange
member organization that solely trades bonds at the Exchange, which the
Exchange believes will enhance market quality through the additional
display of liquidity and increased execution opportunities in Exchange-
traded bonds at the Exchange.
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\6\ 15 U.S.C. 78f(b)(8).
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The Exchange notes that it operates in a highly competitive market
in which market participants can readily favor competing venues that
are not transparent. In such an environment, the Exchange must
continually review, and consider adjusting its fees and
[[Page 3466]]
rebates to remain competitive with other exchanges as well as with
alternative trading systems and other venues that are not required to
comply with the statutory standards applicable to exchanges. Because
competitors are free to modify their own fees and credits in response,
and because market participants may readily adjust their order routing
practices, the Exchange believes that the degree to which fee changes
in this market may impose any burden on competition is extremely
limited. As a result of all of these considerations, the Exchange does
not believe that the proposed change will impair the ability of member
organizations or competing order execution venues to maintain their
competitive standing in the financial markets.
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 has become effective upon filing pursuant
to Section 19(b)(3)(A) \7\ of the Act and paragraph (f) thereunder. 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.
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\7\ 15 U.S.C. 78s(b)(3)(A).
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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:
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-NYSE-2024-02 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-2024-02. 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
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. Do not
include personal identifiable information in submissions; you should
submit only information that you wish to make available publicly. We
may redact in part or withhold entirely from publication submitted
material that is obscene or subject to copyright protection. All
submissions should refer to file number SR-NYSE-2024-02 and should be
submitted on or before February 8, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-00846 Filed 1-17-24; 8:45 am]
BILLING CODE 8011-01-P
