[Federal Register Volume 84, Number 47 (Monday, March 11, 2019)]
[Notices]
[Pages 8773-8774]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-04285]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-85248; File No. SR-NYSECHX-2019-01]
Self-Regulatory Organizations; NYSE Chicago, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend the
Fee Schedule of the Exchange
March 5, 2019.
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 February 21, 2019, the NYSE Chicago, Inc. (``NYSE Chicago'' 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\ 15 U.S.C. 78a.
\3\ 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 fee schedule of the Exchange
(``Fee Schedule'') to eliminate fees and rebates related to the Sub-
second Non-displayed Auction Process (``SNAP'') and the outbound
routing service. 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 amend the Fee Schedule to eliminate all
fees and rebates related to SNAP and the outbound routing service,
which were both decommissioned on December 31, 2018.\4\ Specifically,
the Exchange proposes the following amendments:
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\4\ See Exchange Act Release No. 84852 (December 19, 2018), 83
FR 66808 (December 27, 2018) (SR-CHX-2018-09).
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Section E.6 (Routing Services Fees). Current Section E.6
provides fees for away executions resulting from orders routed away
from the Exchange pursuant to the outbound routing service. Given that
the outbound routing service has been decommissioned, the Exchange
proposes to replace all text under Section E.6 with the term
``Reserved.''
Section E.8(c) (Order Cancellation Fee Exemption). Section
E.8 provides the Order Cancellation Fee, which is assessed to
Participants \5\ per trading account symbol. Paragraph (c) provides an
exemption to the Order Cancellation Fee if a trading account symbol
meets a minimum threshold of executions resulting from single-sided
orders submitted to the Matching System \6\ (``eligible executions'').
When the outbound routing service was operational, eligible executions
included executions within the Matching System and at away markets (for
orders that were routed away pursuant to the outbound routing
service).\7\ However, given that the outbound routing service has been
decommissioned, eligible executions now only include executions within
the Matching System. Accordingly, the Exchange proposes to amend the
definition of eligible executions to omit references to the Routing
Services and a repetitive reference to executions within the Matching
System. Therefore, amended paragraph (c) would provide
[[Page 8774]]
that eligible executions shall only include executions resulting from
single-sided orders submitted to the Matching System.
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\5\ See Article 1, Rule 1(z) of the rules of the Exchange
defining ``Participant.''
\6\ The Matching System is a ``Trading Facility'' of the
Exchange as defined under Article 1, Rule 1(z) of the rules of the
Exchange.
\7\ Only routable orders submitted to the Matching System were
eligible to be routed away pursuant to the outbound routing service.
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Section E.9 (SNAP Execution Fees). Current Section E.9
provides the fees for certain executions that resulted from SNAP
auctions. Given that SNAP has been decommissioned, the Exchange
proposes to delete Section E.9 in its entirety.
Section Q (SNAP Incentive Program). Current Section Q
provides the SNAP Incentive Program, which provided certain rebates to
Participants that initiated SNAP auctions. Given that SNAP has been
decommissioned, the Exchange proposes to delete Section Q in its
entirety.
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 Section 6(b)(1) of the Act,\9\ in particular, in that is
designed to ensure that the Exchange is so organized and has the
capacity to be able to carry out the purposes of this chapter and to
comply, and to enforce compliance by its members and persons associated
with its members, with the provisions of this chapter, the rules and
regulations thereunder, and the rules of the Exchange. Specifically,
since the proposed rule change eliminates obsolete fees and rebates,
the proposed rule change would clarify and streamline the Fee Schedule
and therefore enhance the ability of the Exchange to enforce compliance
by its members and persons associated with its members with the rules
of the Exchange.
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(1).
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In addition, the Exchange believes that the proposed rule change is
consistent with Section 6(b) of the Act, in general, and furthers the
objectives of Section 6(b)(4) of the Act, in particular, in that it
provides for the equitable allocation of reasonable dues, fees, and
other charges among its members and issuers and other persons using its
facilities. Specifically, since the elimination of the obsolete fees
and rebates would apply to all members of the Exchange and the proposed
rule change does not modify any other fees and rebates that have
already been approved by the Commission, the proposed rule change
ensures the equitable allocation of reasonable dues, fees, and other
charges among its members.
B. Self-Regulatory Organization's Statement on Burden on Competition
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. Given that the proposed rule
change deletes fees and rebates for functionality that has been
decommissioned, the proposed rule change does not raise any competitive
issues.
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) \10\ of the Act and subparagraph (f)(2) of Rule
19b-4 \11\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 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) \12\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\12\ 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-NYSECHX-2019-01 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-NYSECHX-2019-01. 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-NYSECHX-2019-01 and should be submitted
on or before April 1, 2019.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-04285 Filed 3-8-19; 8:45 am]
BILLING CODE 8011-01-P