[Federal Register Volume 78, Number 190 (Tuesday, October 1, 2013)]
[Notices]
[Pages 60362-60364]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-23827]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-70499; File No. SR-NYSEMKT-2013-76]
Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed Rule Change To Amend the NYSE Amex
Options Fee Schedule To Specify the Frequency With Which the Exchange
May Change the Options Regulatory Fee
September 25, 2013.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on September 13, 2013, NYSE MKT LLC (``NYSE MKT'' 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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend the NYSE Amex Options Fee Schedule
(``Fee Schedule'') to specify the frequency with which the Exchange may
change the Options Regulatory Fee (``ORF''). The Exchange proposes to
implement the change effective October 1, 2013. The text of the
proposed rule change is available on the Exchange's Web site at
www.nyse.com, at the principal office of the Exchange, and at the
Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend the Fee Schedule to specify the
frequency with which the Exchange may change the ORF. The Exchange
proposes to implement the change effective October 1, 2013.
The ORF is assessed by the Exchange on each ATP Holder for all
options transactions, including mini-options, executed or cleared by
the ATP Holder that are cleared by The Options Clearing Corporation
(``OCC'') in the customer range (i.e., transactions that clear in the
customer account of the ATP Holder's clearing firm at OCC) regardless
of the exchange on which the transaction occurs. The fee is collected
indirectly from ATP Holders through their clearing firms by OCC on
behalf of the Exchange. The dues and fees paid by ATP Holders go into
the general funds of the
[[Page 60363]]
Exchange, a portion of which is used to help pay the costs of
regulation.
In response to feedback from participants requesting greater
certainty as to when ORF changes may occur, the Exchange proposes to
specify in the Fee Schedule that the Exchange may only increase or
decrease the ORF semi-annually, and any such fee change will be
effective on the first business day of February or August.\3\ In
addition to submitting a proposed rule change to the Securities and
Exchange Commission (``Commission'') as required by the Act to increase
or decrease the ORF, the Exchange will notify participants via a Trader
Update of any anticipated change in the amount of the fee at least 30
calendar days prior to the effective date of the change. The Exchange
believes that by providing guidance on the timing of any changes to the
ORF, the Exchange would make it easier for participants to ensure their
systems are configured to properly account for the ORF.
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\3\ The Commission notes that in a prior filing, the Exchange
committed to continue to monitor the amount of revenue collected
from the ORF so that it, in combination with its other regulatory
fees and fines, does not exceed regulatory costs. See, e.g.,
Securities Exchange Act Release No. 68183 (November 8, 2012), 77 FR
68186 (November 15, 2012) (SR-NYSEMKT-2012-54).
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The proposed change is not intended to address any other issues,
and the Exchange is not aware of any problems that ATP Firms would have
in complying with the proposed change.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\4\ in general, and furthers the
objectives of Sections 6(b)(4) and (5) of the Act,\5\ 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.
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\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(4) and (5).
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The Exchange believes that the proposed change to limit changes to
the ORF to twice a year on specific dates with advance notice is
reasonable because it will give participants certainty on the timing of
changes, if any, and better enable them to properly account for ORF
charges among their customers. The Exchange believes that the proposed
change is equitable and not unfairly discriminatory because it will
apply in the same manner to all ATP Holders that are subject to the ORF
and provide them with additional advance notice of changes to that fee.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\6\ the Exchange does
not believe that the proposed rule change will impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act. The proposed change is not intended to address a
competitive issue but rather to provide ATP Holders with better notice
of any change that the Exchange may make to the ORF. In any event,
because competitors are free to modify their own fees and credits in
response, and because market participants may readily adjust their
trading practices, the Exchange believes that the degree to which fee
or credit 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 ATP Holders or competing order execution venues to maintain
their competitive standing in the financial markets.
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\6\ 15 U.S.C. 78f(b)(8).
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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) \7\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \8\ thereunder, because it establishes a due, fee, or other charge
imposed by the Exchange.
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\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 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) \9\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\9\ 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:
Electronic Comments
Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-NYSEMKT-2013-76 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSEMKT-2013-76. 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 Web site (http://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 Web site 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 such filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make publicly available. All
submissions should refer to File Number SR-NYSEMKT-2013-76 and should
be submitted on or before October 22, 2013.
[[Page 60364]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-23827 Filed 9-30-13; 8:45 am]
BILLING CODE 8011-01-P