[Federal Register Volume 83, Number 221 (Thursday, November 15, 2018)]
[Notices]
[Pages 57511-57513]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-24868]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-84557; File No. SR-NYSEArca-2018-78]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE
Arca Equities Fees and Charges To Remove Certain Obsolete Text That
References Pillar Phase I Protocols
November 8, 2018.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that, on November 1, 2018, NYSE Arca, Inc. (``Exchange'' or ``NYSE
Arca'') 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 amend the NYSE Arca Equities Fees and
Charges (``Fee Schedule'') to remove certain obsolete text that
reference [sic] Pillar phase I protocols now that Pillar phase I
protocols are no longer available for ETP Holders to communicate with
the NYSE Arca Marketplace. The Exchange proposes to implement the fee
changes effective November 1, 2018. The proposed rule change is
available on the Exchange's website at www.nyse.com, at the principal
office of the Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
[[Page 57512]]
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 the Fee Schedule to remove certain
obsolete text that reference Pillar phase I protocols now that Pillar
phase I protocols are no longer available for ETP Holders to
communicate with the NYSE Arca Marketplace. The Exchange proposes to
implement the fee changes effective November 1, 2018.
As a general matter, ETP Holders enter orders and order
instructions by using communication protocols that map to the order
types and modifiers described in Exchange rules. Prior to the
implementation of Pillar, ETP Holders communicated with the NYSE Arca
Marketplace using Pillar phase I protocols. When the Exchange
introduced trading on its Pillar trading platform, the Exchange also
introduced new technology to support how ETP Holders communicate with
the NYSE Arca Marketplace, referred to in the Exchange's rules as
Pillar phase II protocols. During the Pillar implementation, there was
a period of time when both Pillar phase I protocols and Pillar phase II
protocols were available to ETP Holders. Effective October 1, 2018,
Pillar phase I protocols are no longer available to ETP Holders. All
ETP Holders now use Pillar phase II protocols to communicate with the
NYSE Arca Marketplace. As a result, there is no longer a need to
distinguish between Pillar phase I protocols and Pillar phase II
protocols in the Exchange's Fee Schedule.
In April 2018, the Exchange filed a proposed rule change to adopt a
new pricing tier--BBO Setter Tier.\4\ In the BBO Setter Tier Filing,
the Exchange adopted the following rule text in the BBO Setter pricing
tier: ``For purpose of the BBO Setter Tier, ETP ID means an ETP ID when
using Pillar phase I protocols to communicate with the NYSE Arca
Marketplace or an MPID when using Pillar phase II protocols to
communicate with the NYSE Arca Marketplace.'' The Exchange proposes to
remove this text from the Fee Schedule now that Pillar phase I
protocols are no longer available and all ETP Holders now communicate
with the NYSE Arca Marketplace using Pillar phase II protocols.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 83032 (April 11,
2017 [sic]), 83 FR 16909 (April 17, 2017 [sic]) (SR-NYSEArca-2018-
20) (``BBO Setter Tier Filing'').
---------------------------------------------------------------------------
Additionally, in August 2017, in connection with the introduction
of Pillar phase II protocols, the Exchange amended the Fee Schedule to
adopt a cap, for August and September 2017, on monthly fees for the use
of ports connecting to the NYSE Arca Marketplace.\5\ Given that the
months during which the port fee cap was applicable have passed, the
Exchange proposes to delete reference to the port fee cap from the Fee
Schedule as that rule text is now obsolete.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 81573 (September 11,
2017), 82 FR 43430 (September 15, 2017) (SR-NYSEArca-2017-97).
---------------------------------------------------------------------------
Finally, in October 2017, the Exchange amended the Fee Schedule to
adopt a Decommission Extension Fee applicable to ETP Holders for the
use of Pillar phase I protocols to connect with the NYSE Arca
Marketplace for a three-month period from March 2018 through May 2018
as an incentive for ETP Holders to fully transition to the use of
Pillar phase II protocols to connect with the NYSE Arca Marketplace.\6\
In June 2018, the Exchange filed to extend the effectiveness of the
Decommission Extension Fee for an additional four months, until
September 2018.\7\ The Exchange proposes to remove rule text regarding
the Decommission Extension Fee from the Fee Schedule as that rule text
is now obsolete because the period of time during which the
Decommission Extension Fee was applicable has passed.
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 81901 (October 19,
2017), 82 FR 49426 (October 25, 2017) (SR-NYSEArca-2017-121).
\7\ See Securities Exchange Act Release No. 83410 (June 12,
2018), 83 FR 28300 (June 18, 2018) (SR-NYSEArca-2018-42).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\8\ in general, and furthers the
objectives of Sections 6(b)(4) and (5) of the Act,\9\ 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.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
The Exchange believes that it is reasonable, equitable and not
unfairly discriminatory to delete reference to obsolete rule text and
dates from the Fee Schedule. The Exchange believes that the proposed
changes are reasonable because they would result in greater specificity
and precision within the Fee Schedule, which would contribute to
reasonably ensuring that the fees and credits described there are clear
and accurate. Specifically, the proposed changes are reasonable because
they would remove obsolete rule text and dates from the Fee Schedule
related to the use of ports that are no longer available to connect to
the NYSE Arca Marketplace and a Decommission Extension Fee that is no
longer charged by the Exchange. The Exchange also believes that the
proposed changes are equitable and not unfairly discriminatory because
all readers of the Fee Schedule, including all ETP Holders, would
benefit from the increased specificity and clarity that this proposed
rule change would provide.
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,\10\ 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. The proposed changes are not designed to address
any competitive issues. Rather, the proposed changes are designed to
provide greater specificity and precision within the Fee Schedule,
which would contribute to reasonably ensuring that the fees and credits
described therein are clear and accurate. In addition, the removal of
obsolete text from the Fee Schedule would not have any impact on inter-
or intra-market competition because the proposed change would result in
a streamlined Fee Schedule without any impact on pricing.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change is effective upon filing pursuant to
Section 19(b)(3)(A) \11\ of the Act and subparagraph (f)(2) of Rule
19b-4 \12\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may
[[Page 57513]]
temporarily suspend such rule change if it appears to the Commission
that such action is necessary or appropriate in the public interest,
for the protection of investors, or otherwise in furtherance of the
purposes of the Act. If the Commission takes such action, the
Commission shall institute proceedings under Section 19(b)(2)(B) \13\
of the Act to determine whether the proposed rule change should be
approved or disapproved.
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-NYSEArca-2018-78 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSEArca-2018-78. 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 (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 website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-NYSEArca-2018-78 and should be submitted
on or before December 6, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------
\14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-24868 Filed 11-14-18; 8:45 am]
BILLING CODE 8011-01-P