[Federal Register Volume 84, Number 224 (Wednesday, November 20, 2019)]
[Notices]
[Pages 64160-64164]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-25107]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-87541; File No. SR-NYSECHX-2019-20]
Self-Regulatory Organizations; NYSE Chicago, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Amending the
Fee Schedule of NYSE Chicago, Inc. in Connection With the Exchange's
Transition to Trading to the Pillar Trading Platform
November 14, 2019.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on November 12, 2019 the NYSE Chicago, Inc. (``NYSE
Chicago'' 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.
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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 NYSE Chicago,
Inc. (the ``Fee Schedule'') in connection with the Exchange's
transition to trading to the Pillar trading platform. The Exchange
proposes to implement the fee change effective November 12, 2019. 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
On November 4, 2019, the Exchange transitioned to trading on
Pillar.\4\ Pillar is an integrated trading technology platform designed
to use a single specification for connecting to the equities and
options markets operated by the Exchange and its affiliates, NYSE Arca,
Inc. (``NYSE Arca''), NYSE American, LLC (``NYSE American''), NYSE
National, Inc. (``NYSE National''), and New York Stock Exchange LLC
(``NYSE''). With Pillar, the Exchange transitioned its cash equities
trading platform to a fully automated price-time priority allocation
model that trades all Regulation National Market System (``NMS'')
Stocks.
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\4\ See Trader Update, available at https://www.nyse.com/publicdocs/nyse/notifications/trader-update/NYSEChicago_Migration_update_9.4.pdf. See also Securities Exchange
Act Release No. 87264 (October 9, 2019), 84 FR 55345 (October 16,
2019) (SR-NYSECHX-2019-08).
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In connection with this transition, the Exchange proposes to amend
the Fee Schedule for trading on the Pillar platform, and to eliminate
certain other fees that would no longer be applicable. The Exchange
proposes to implement
[[Page 64161]]
the fee changes effective November 12, 2019.\5\
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\5\ The Exchange originally filed to amend the Fee Schedule on
November 4, 2019 (SR-NYSECHX-2019-18). SR-NYSECHX-2019-18 was
subsequently withdrawn and replaced by this filing.
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Background
The Exchange operates in a highly competitive environment. The
Commission has repeatedly expressed its preference for competition over
regulatory intervention in determining prices, products, and services
in the securities markets. 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.'' \6\
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\6\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005).
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As the Commission itself recognized, the market for trading
services in NMS stocks has become ``more fragmented and competitive.''
\7\ Indeed, equity trading is currently dispersed across 13
exchanges,\8\ 31 alternative trading systems,\9\ and numerous broker-
dealer internalizers and wholesalers, all competing for order flow.
Based on publicly-available information for August 2019, no single
exchange has more than 19% market share (whether including or excluding
auction volume).\10\ Therefore, no exchange possesses significant
pricing power in the execution of equity order flow. More specifically,
in September 2019, the Exchange had 0.47% market share of executed
volume of non-auction equity trading.\11\
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\7\ See Securities Exchange Act Release No. 51808, 84 FR 5202,
5253 (February 20, 2019) (File No. S7-05-18) (Transaction Fee Pilot
for NMS Stocks Final Rule).
\8\ See Cboe U.S Equities Market Volume Summary at https://markets.cboe.com/us/equities/market_share. See generally https://www.sec.gov/fast-answers/divisionsmarketregmrexchangesshtml.html.
\9\ See FINRA ATS Transparency Data, available at https://otctransparency.finra.org/otctransparency/AtsIssueData. A list of
alternative trading systems registered with the Commission is
available at https://www.sec.gov/foia/docs/atslist.htm.
\10\ See Cboe Global Markets U.S. Equities Market Volume
Summary, available at http://markets.cboe.com/us/equities/market_share/.
\11\ See id.
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The Exchange believes that the ever-shifting market share among the
exchanges from month to month demonstrates that market participants can
move order flow, or discontinue or reduce use of certain categories of
products. While it is not possible to know a firm's reason for shifting
order flow, the Exchange believes that one such reason is because of
fee changes at any of the registered exchanges or non-exchange venues
to which a firm routes order flow.
Proposed Rule Change
Pursuant to Section E.1 of the Fee Schedule, the Exchange currently
charges a fee for removing liquidity and provides a credit for adding
liquidity for orders in Tape A, B and C securities. For each of Tape A,
B and C securities with a share price equal to or greater than $1.00,
the Exchange charges a fee of $0.0030 per share for orders that remove
liquidity and provides a credit of $0.0020 per share for orders that
provide liquidity. For each of Tape A, B and C securities with a share
price less than $1.00, the Exchange charges a fee that is equal to
0.10% of trade value \12\ for orders that remove liquidity and provides
a credit of $0.0009 per share for orders that provide liquidity.
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\12\ ``Trade value'' means a dollar amount equal to the price
per share multiplied by the number of shares executed. See Fee
Schedule.
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The Exchange proposes the following transaction fees for trading on
its Pillar trading platform. For each of Tape A, B and C securities
with a share price equal to or greater than $1.00, the Exchange
proposes a fee of $0.0010 per share for orders that remove liquidity
and for orders that add liquidity. For each of Tape A, B and C
securities with a share price less than $1.00, the Exchange proposes a
fee that is equal to 0.10% of trade value for orders that remove
liquidity and for orders that add liquidity.
Section E.1 currently provides that the fees under this section are
for Matching System executions resulting from single-sided orders
submitted as at least a Round Lot. The Exchange proposes to remove
``submitted as at least a Round Lot'' from the text of the Fee Schedule
as the proposed fees would apply to all orders, including round lot and
odd lot orders. Further, as described below, the Exchange is proposing
to delete pricing applicable to odd lot orders from the Fee Schedule,
and as such, the proposed fees under Section E.1 would apply to odd lot
orders also.
Additionally, with this proposed rule change, the Exchange would no
longer provide credits for orders that add liquidity. Accordingly, the
Exchange proposes to delete paragraphs (b) and (c) under Section E.1 as
each of those paragraphs refer to credits that would no longer be
payable by the Exchange. The Exchange also proposes to remove the
reference to ``credits attributed'' found in Section E.1 and the
reference to ``attributed credits pursuant to Section E.1(b) and (c)''
found in Section E.3(a)(2). The Exchange also proposes to amend the
text of paragraph (a) under Section E.1 to make clear that the both the
liquidity removing fee and the liquidity providing fee shall not be
charged to any Institutional Brokers, as Institutional Brokers are and
would continue to be subject to fees under Section E.3. Finally, the
Exchange proposes to delete the conditional requirement found in
Sections E.1 and E.3 of the Fee Schedule. Specifically, the Exchange
proposes to delete the term ``Subject to Section E.9 below'' from
Sections E.1 and E.3 because the Fee Schedule no longer has a Section
E.9. Section E.9 previously provided fees for certain executions that
resulted from a functionality that has since been decommissioned. The
Exchange inadvertently failed to previously delete reference to Section
E.9 found in Sections E.1 and E.3 from the Fee Schedule and proposes to
do so now.\13\
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\13\ See Securities Exchange Act Release No. 85248 (March 5,
2019), 84 FR 8773 (March 11, 2019) (SR-NYSECHX-2019-01). See also
Exchange Act Release No. 84852 (December 19, 2018), 83 FR 66808
(December 27, 2018) (SR-CHX-2018-09).
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Section E.4 currently provides that a fee of $0.0040 per share
applies for the execution of orders submitted as odd lots during all
trading sessions.\14\ With this proposed rule change, the Exchange
would no longer distinguish between executions of round lot orders and
odd lot orders and would charge the same fee for all orders pursuant to
the proposed fees under Section E.1. Accordingly, the Exchange proposes
to remove the text within Section E.4 of the Fee Schedule in its
entirety, replacing it with ``Reserved.''
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\14\ See Securities Exchange Act Release No. 54657 (October 26,
2006), 71 FR 64590 (November 2, 2006) (SR-CHX-2006-29). See also
Securities Exchange Act Release Nos. 64953 (July 25, 2011), 76 FR
45626 (July 29, 2011) (SR-CHX-2011-19); 73814 (December 11, 2014),
79 FR 75203 (December 17, 2014) (SR-CHX-2014-19); and 77785 (May 9,
2016), 81 FR 29936 (May 13, 2016) (SR-CHX-2016-06).
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Section E.8 currently provides a formula-based order cancellation
fee which assesses a daily cancellation fee per trading account symbol,
if the order cancellation ratio exceeds a designated threshold.\15\
Historically, the
[[Page 64162]]
cancellation fee was adopted so the Exchange could recoup some of the
costs associated with administering and processing large numbers of
cancelled orders and to incent Participants to post marketable orders,
and thereby, promote liquidity and single-sided executions on the
Exchange. With this proposed rule change, the Exchange would no longer
assess the cancellation fee and proposes to remove the fee from the Fee
Schedule.
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\15\ See Securities Exchange Act Release No. 61392 (January 21,
2010), 75 FR 4436 (January 27, 2010) (SR-CHX-2010-02). See also
Securities Exchange Act Release Nos. 62642 (August 4, 2010), 75 FR
48404 (August 10, 2010) (SR-CHX-2010-19); 68219 (November 13, 2012),
77 FR 69673 (November 20, 2012) (SR-CHX-2012-15); 69701 (June 5,
2013), 78 FR 35082 (June 11, 2013) (SR-CHX-2013-11); 69903 (July 1,
2013), 78 FR 40788 (July 8, 2013) (SR-CHX-2013-12; and 71404
(January 27, 2014), 79 FR 5476 (January 31, 2014) (SR-CHX-2014-01).
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Section I of the Fee Schedule currently provides listing fees
charged by the Exchange.\16\ More specifically, Section I.1 provides
fees for original listings; Section I.2 provides the fees for annual
maintenance; Section I.3 provides the fees for supplemental listings;
and Section I.4 provides miscellaneous fees related to listings on the
Exchange. On Pillar, the Exchange would no longer be a primary listing
venue and would no longer charge the listing fees found in Section I of
the Fee Schedule.\17\ Accordingly, the Exchange proposes to remove the
text within Section I of the Fee Schedule in its entirety, replacing it
with ``Reserved.''
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\16\ See Securities Exchange Act Release Nos. 54657 (October 26,
2006), 71 FR 64590 (November 2, 2006) (SR-CHX-2006-29); and 68620
(January 10, 2013), 78 FR 3485 (January 16, 2013) (SR-CHX-2012-20).
\17\ See Trader Update, available at https://www.nyse.com/publicdocs/nyse/notifications/trader-update/NYSEChicago_Migration_update_9.4.pdf. See also Securities Exchange
Act Release No. 87264 (October 9, 2019), 84 FR 55345 (October 16,
2019) (SR-NYSECHX-2019-08).
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\18\ in general, and furthers the
objectives of Sections 6(b)(4) and (5) of the Act,\19\ 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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\18\ 15 U.S.C. 78f(b).
\19\ 15 U.S.C. 78f(b)(4) and (5).
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The Proposed Rule Change Is Reasonable
As discussed above, the Exchange operates in a highly fragmented
and competitive market. 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.'' \20\
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\20\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005).
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As the Commission itself recognized, the market for trading
services in NMS stocks has become ``more fragmented and competitive.''
\21\ Indeed, equity trading is currently dispersed across 13
exchanges,\22\ 31 alternative trading systems,\23\ and numerous broker-
dealer internalizers and wholesalers, all competing for order flow.
Based on publicly-available information, no single exchange has more
than 19% market share (whether including or excluding auction
volume).\24\ Therefore, no exchange possesses significant pricing power
in the execution of equity order flow. More specifically, as noted
earlier, the Exchange averaged less than 1% market share of executed
volume of equity trades (excluding auction volume) \25\ for September
2019.
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\21\ See Securities Exchange Act Release No. 51808, 84 FR 5202,
5253 (February 20, 2019) (File No. S7-05-18) (Final Rule).
\22\ See Cboe Global Markets, U.S Equities Market Volume
Summary, available at https://markets.cboe.com/us/equities/market_share.
\23\ See FINRA ATS Transparency Data, available at https://otctransparency.finra.org/otctransparency/AtsIssueData. A list of
alternative trading systems registered with the Commission is
available at https://www.sec.gov/foia/docs/atslist.htm.
\24\ See Cboe Global Markets U.S. Equities Market Volume
Summary, available at http://markets.cboe.com/us/equities/market_share/.
\25\ See note 11, supra.
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The Exchange believes that the ever-shifting market share among the
exchanges from month to month demonstrates that market participants can
shift order flow, or discontinue to reduce use of certain categories of
products, in response to fee changes. With respect to non-marketable
orders which provide liquidity on an Exchange, Participants can choose
from any one of the 13 currently operating registered exchanges to
route such order flow. Accordingly, competitive forces reasonably
constrain exchange transaction fees that relate to orders that would
provide displayed liquidity on an exchange. Stated otherwise, changes
to exchange transaction fees can have a direct effect on the ability of
an exchange to compete for order flow.
The Exchange believes that charging $0.0010 per share for
securities priced at or above $1.00 and 0.10% of the total dollar value
of the transaction for securities priced below $1.00 for executions on
the Exchange of single-sided orders that add liquidity and that remove
liquidity to the Exchange is reasonable because the proposed rate would
be comparable to the fee charged by other exchanges.\26\ With this
proposed rule change, the Exchange proposes to standardize the fee for
adding and removing liquidity for all orders executed by Participants
on the Exchange. The Exchange believes it is reasonable to amend the
rule text in Section E.1(a) to clarify that, with this proposed rule
change, all liquidity providing orders and all liquidity removing
orders executed by Participants on the Exchange would be charged the
same fee and that the liquidity removing fee and the liquidity
providing fee shall not be charged to any Institutional Brokers, as
Institutional Brokers are and would continue to be subject to fees
under Section E.3.
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\26\ IEX, for instance, charges a fee of $0.0009 per share for
providing non-displayed liquidity for securities priced at or above
$1.00 and 0.30% of TDV (i.e., the total dollar value of the
transaction calculated as the execution price) for securities priced
below $1.00. See Investors Exchange Fee Schedule, available at
https://iextrading.com/trading/fees/.
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The Exchange believes it is reasonable to charge odd lot orders the
same fee that is charged for round lot orders, and to delete the part
of the Fee Schedule that provided fees specifically for odd lot orders.
The Exchange believes the proposed rule change, which would result in
lower fees for the execution of odd lot orders on the Exchange, would
provide an incentive to Participants to direct their odd lot order flow
to the Exchange. This in turn would provide the Exchange with potential
order flow as it transitions to the Pillar trading platform.
The Exchange believes that it is reasonable to eliminate the
cancellation fee, and to delete the part of the Fee Schedule that
provided the cancellation fee. The cancellation fee was originally
introduced in response to capacity concerns stemming from Participants
generating significant order traffic that did not result in executed
trades due to orders being cancelled at high rates. In the time since
the cancellation fee was adopted, the fee has become less important as
the Exchange over time has generally improved its technology and the
Exchange believes that maintaining the fee is no longer necessary. The
Exchange believes that this fee may inadvertently discourage
Participants to enter additional orders on the Exchange.
The Exchange believes it is reasonable to eliminate the listing
fees from the Fee Schedule, and to delete the part of the Fee Schedule
that provided the listing fees, because once the Exchange
[[Page 64163]]
transitions to Pillar, the Exchange would no longer be a primary
listing market and therefore, removal of the listing fees from the Fee
Schedule would increase transparency to the fees that would be
applicable on the Exchange and would reduce investor confusion.
The Exchange believes that the proposal to delete obsolete text
under Sections E.1 and E.3 of the Fee Schedule would remove impediments
to, and perfect the mechanisms of, a free and open market and a
national market system and, in general, protect investors and the
public interest because the proposed fee change would remove text from
the Fee Schedule related to fees that no longer exist and therefore
reduce any potential ambiguity and provide clarification with respect
to fees that are applicable on the Exchange.
The Proposed Rule Change Is an Equitable Allocation of Fees and Credits
The Exchange believes its proposal equitably allocates its fees
among its market participants.
First, the Exchange is proposing to adopt a standardized rate for
orders that add liquidity and orders that remove liquidity. The
Exchange believes the proposed revised fee structure would simplify the
fees charged by the Exchange to Participants that transact on the
Exchange as all liquidity providing orders and all liquidity removing
orders executed by Participants on the Exchange would be charged the
same fee. As a result, the proposal should encourage Participants to
direct orders that add liquidity and remove liquidity, as the case may
be, thereby contributing to robust levels of trading, which would
benefit all market participants. The proposed change will encourage the
submission of a greater number of orders to a national securities
exchange, thus promoting price discovery and transparency and enhancing
order execution opportunities for Participants on the Exchange.
However, without having a view of Participant's activity on other
markets and off-exchange venues, the Exchange has no way of knowing
whether this proposed rule change would result in a change in trading
behavior by Participants. However, the Exchange believes that
standardizing the adding and removing fees by adopting a single fee
would result in a simpler fee structure which may provide an incentive
for Participants to continue to submit orders to the Exchange, and
thereby promote price discovery and increased execution opportunities
for all Participants. The Exchange believes the proposed rule change
would improve market quality for all market participants on the
Exchange and, as a consequence, attract more liquidity to the Exchange,
thereby improving market-wide quality and price discovery.
The Exchange believes the proposed rule change would improve market
quality for all market participants on the Exchange and, as a
consequence, attract more liquidity to the Exchange thereby improving
market-wide quality. The proposal neither targets nor will it have a
disparate impact on any particular category of market participant. The
Exchange believes that recalibrating the fees for orders that add and
that remove liquidity would continue to attract order flow and
liquidity to the Exchange for the benefit of investors generally.
The Exchange further believes the proposed rule change to remove
sections related to fees for odd lot orders, cancellation fee and
listing fees from the Fee Schedule and the deletion of obsolete fees is
equitable because such fees are no longer applicable or would no longer
be applicable once the Exchange has transitioned to the Pillar trading
platform. The Exchange believes this will more clearly identify
currently applicable fees, which the Exchange believes removes
impediments to and perfects the mechanism of a free and open market.
The Exchange believes the proposed rule change will eliminate confusion
regarding which fees apply to current trading, which ultimately
protects investors and the public interest.
The Proposed Rule Change Is Not Unfairly Discriminatory
The Exchange believes that the proposal is not unfairly
discriminatory. In the prevailing competitive environment, Participants
are free to disfavor the Exchange's pricing if they believe that
alternatives offer them better value.
The proposal to adopt standardized fees for orders that add
liquidity and for orders that remove liquidity neither targets nor will
it have a disparate impact on any particular category of market
participant. The proposal does not permit unfair discrimination because
the proposed standardized fees would be applied to all similarly
Participants, who would all be eligible for the same fee on an equal
basis. Accordingly, no Participant already operating on the Exchange
would be disadvantaged by this allocation of fees.
The Exchange believes the proposed rule change to charge odd lot
orders the same fee that is charged to round lot orders, and to delete
the part of the Fee Schedule that provided fees specifically for odd
lot orders, is not unfairly discriminatory as the proposed fees for odd
lot orders would apply on an equal basis to all Participants that send
odd lot orders to the Exchange.
The Exchange believes the proposed rule change to eliminate the
cancellation fee, and to delete the part of the Fee Schedule that
provided the cancellation fee, is not unfairly discriminatory as the
proposed elimination of the fee would apply equally to all
Participants, who will no longer be subject to any cancellation fees,
resulting in lower fees for Participants.
The Exchange believes the proposed rule change to eliminate the
listing fees, and to delete the part of the Fee Schedule that provided
the listing fees, is not unfairly discriminatory as the proposed
elimination of the fee would apply equally to all Participants, who
will no longer be subject to any listing fees.
The Exchange believes the proposed rule change to delete references
to Section E.9 from the Fee Schedule, which no longer exists, is not
unfairly discriminatory because the proposed deletion would alleviate
confusion and maintain clarity in the Fee Schedule, and would apply to
all Participants on an equal basis.
Finally, the submission of orders to the Exchange is optional for
Participants in that they could choose whether to submit orders to the
Exchange and, if they do, the extent of its activity in this regard.
The Exchange believes that it is subject to significant competitive
forces, as described below in the Exchange's statement regarding the
burden on competition. 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,\27\ 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. Instead, as discussed above, the Exchange believes
that the proposed changes would encourage the submission of orders to a
public exchange, thereby promoting market depth, price discovery and
transparency and enhancing order execution opportunities for
Participants. As a result, the Exchange believes that the proposed
change furthers the Commission's goal in adopting Regulation NMS of
fostering integrated competition among orders, which
[[Page 64164]]
promotes ``more efficient pricing of individual stocks for all types of
orders, large and small.'' \28\
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\27\ 15 U.S.C. 78f(b)(8).
\28\ See Securities Exchange Act Release No. 51808, 70 FR 37495,
37498-99 (June 29, 2005) (S7-10-04) (Final Rule).
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Intramarket Competition
The proposed rule change is designed to attract order flow to the
Exchange, and thereby, increased liquidity. Greater liquidity benefits
all market participants on the Exchange by providing more trading
opportunities and encourages Participants, to send orders, thereby
contributing to robust levels of liquidity, which benefit all market
participants. The Exchange does not believe that the proposed rule
change will impair the ability of Participants to compete in the
financial markets. There are 13 exchanges, 31 alternative trading
systems, and numerous broker-dealer internalizers and wholesalers, all
competing for order flow from which Participants may choose to send
their quotes and trades. The Exchange also does not believe the
proposed rule change would impact intramarket competition as the
proposed rule change would apply to all Participants equally that
transact on the Exchange, and therefore the proposed change would not
impose a disparate burden on competition among market participants on
the Exchange.
Intermarket Competition
The Exchange operates in a highly competitive market in which
market participants can readily choose to send their orders to other
exchange and off-exchange venues if they deem fee and rebate levels at
those other venues to be more favorable. As noted earlier, the
Exchange's market share of intraday trading (i.e., excluding auctions)
was 0.47% in September 2019. In such an environment, the Exchange must
continually adjust its fees and rebates to remain competitive with
other exchanges and with off-exchange venues. 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 does not believe the proposed change can impose any burden
on intermarket competition.
The Exchange believes that the proposed rule change could promote
competition between the Exchange and other execution venues, including
those that currently offer similar order types and comparable
transaction pricing, by encouraging additional orders to be sent to the
Exchange for execution.
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) \29\ of the Act and subparagraph (f)(2) of Rule
19b-4 \30\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
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\29\ 15 U.S.C. 78s(b)(3)(A).
\30\ 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) \31\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\31\ 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-2019-20 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-2019-20. 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-2019-20 and should be submitted
on or before December 11, 2019.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\32\
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\32\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-25107 Filed 11-19-19; 8:45 am]
BILLING CODE 8011-01-P