Notice2021-11611
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the NYSE Arca Equities Fees and Charges
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
June 3, 2021
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 86 Issue 105 (Thursday, June 3, 2021)</title>
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[Federal Register Volume 86, Number 105 (Thursday, June 3, 2021)]
[Notices]
[Pages 29868-29876]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-11611]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-92053; File No. SR-NYSEArca-2021-43]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Amending the NYSE
Arca Equities Fees and Charges
May 27, 2021.
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 May 14, 2021, NYSE Arca, Inc. (``NYSE Arca'' 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 NYSE Arca Equities Fees and
Charges (``Fee Schedule'') to replace the monthly rebate tied to the
performance in the opening and closing auctions in NYSE Arca-listed
Securities and the ETF Incentive Program for NYSE Arca-listed
Securities with a new pricing incentive for Lead Market Makers and ETP
Holders registered as Market Makers. The Exchange proposes to implement
the fee changes effective May 14, 2021. The proposed rule change is
available on the Exchange's website at <a href="http://www.nyse.com">www.nyse.com</a>, 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 replace the
monthly rebate tied to the performance in the opening and closing
auctions in NYSE Arca-listed Securities and the ETF Incentive Program
for NYSE Arca-listed Securities \4\ with a new pricing incentive that
is tied to meeting enhanced market quality metrics. The Exchange now
proposes to provide financial incentives for Lead Market Makers
(``LMMs'') \5\ that are based on whether the LMM meets certain
Performance Metrics (as described below). Specifically, the Exchange
would provide incremental credits to LMMs based on how many Performance
Metrics an LMM meets in each NYSE Arca-listed Security. The Exchange
also proposes to make the additional credits available for ETP Holders
registered as Market Maker (``Market Makers'').\6\ The Exchange
believes that the proposed rule change would encourage LMMs and Market
Makers to maintain better market quality in NYSE Arca-listed Securities
in which they are registered, including in lower volume securities.
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\4\ See Securities and Exchange Act Release No. 87978 (January
15, 2020), 85 FR 3727 (January 22, 2020) (SR-NYSEArca-2020-03).
\5\ The term ``Lead Market Maker'' is defined in Rule 1.1(w) to
mean a registered Market Maker that is the exclusive Designated
Market Maker in listings for which the Exchange is the primary
market.
\6\ Pursuant to Rule 7.23-E(a)(1), all registered Market Makers,
including LMMs, have an obligation to maintain continuous, two-sided
trading interest in those securities in which the Market Marker is
registered to trade. In addition, pursuant to Rule 7.24-E(b), LMMs
are held to higher performance standards in the securities in which
they are registered as LMM. LMMs can earn additional financial
incentives for meeting the higher performance standards specified
from time to time in the Fee Schedule. Only one LMM can be
registered in a NYSE-Arca listed security, but that security can
have an unlimited number of registered Market Makers. Market Makers
can also be registered in securities that trade on an unlisted
trading privileges basis on the Exchange.
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The Exchange notes that its listing business operates in a highly
competitive market in which market participants, including issuers of
securities, LMMs, and other liquidity providers, can readily transfer
their listings, or direct order flow to competing venues if they deem
fee levels, liquidity provision incentive programs, or other factors at
a particular venue to be insufficient or excessive. The proposed rule
change reflects the current competitive pricing environment and is
designed to incentivize market participants to participate as LMMs or
Market Makers, and thereby, further enhance the market quality on all
securities listed on the Exchange and encourage issuers to list new
products on the Exchange.
The Exchange proposes to implement the fee changes effective May
14, 2021.\7\
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\7\ The Exchange originally filed to amend the Fee Schedule on
May 3, 2021 (SR-NYSEArca-2021-33). SR-NYSEArca-2021-33 was
subsequently withdrawn and replaced by this filing.
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Background
As noted above, the Exchange operates in a highly competitive
market. 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.'' \8\
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\8\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005) (File No. S7-10-04) (Final
Rule) (``Regulation NMS'').
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While Regulation NMS has enhanced competition, it has also fostered
a ``fragmented'' market structure where trading in a single stock can
occur across multiple trading centers. When multiple trading centers
compete for order flow in the same stock, the Commission has recognized
that ``such competition can lead to the fragmentation of order flow in
that stock.'' \9\ Indeed, equity trading is currently dispersed across
16
[[Page 29869]]
exchanges,\10\ numerous alternative trading systems,\11\ and broker-
dealer internalizers and wholesalers, all competing for order flow.
Based on publicly-available information, no single exchange currently
has more than 17% market share.\12\ Therefore, no exchange possesses
significant pricing power in the execution of equity order flow. More
specifically, the Exchange currently has less than 10% market share of
executed volume of equities trading.\13\
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\9\ See Securities Exchange Act Release No. 61358, 75 FR 3594,
3597 (January 21, 2010) (File No. S7-02-10) (Concept Release on
Equity Market Structure).
\10\ See Cboe U.S. Equities Market Volume Summary, available at
<a href="https://markets.cboe.com/us/equities/market_share">https://markets.cboe.com/us/equities/market_share</a>. See generally
<a href="https://www.sec.gov/fast-answers/divisionsmarketregmrexchangesshtml.html">https://www.sec.gov/fast-answers/divisionsmarketregmrexchangesshtml.html</a>.
\11\ See FINRA ATS Transparency Data, available at <a href="https://otctransparency.finra.org/otctransparency/AtsIssueData">https://otctransparency.finra.org/otctransparency/AtsIssueData</a>. A list of
alternative trading systems registered with the Commission is
available at <a href="https://www.sec.gov/foia/docs/atslist.htm">https://www.sec.gov/foia/docs/atslist.htm</a>.
\12\ See Cboe Global Markets U.S. Equities Market Volume
Summary, available at <a href="http://markets.cboe.com/us/equities/market_share/">http://markets.cboe.com/us/equities/market_share/</a>.
\13\ 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. With respect to non-marketable order
flow that would provide liquidity on an Exchange against which market
makers can quote, ETP Holders can choose from any one of the 16
currently operating registered exchanges to route such order flow.
Accordingly, competitive forces constrain exchange transaction fees
that relate to orders that would provide liquidity on an exchange.
Proposed Rule Change
With this proposed rule change, the Exchange proposes to reorganize
certain existing fees and credits and introduce new pricing that is
tied to market quality metrics provided by LMMs and Market Makers on an
ETP basis. In doing so, the Exchange proposes four new sections that
would be applicable to LMM Transaction Fees and Credits. The proposed
four sections, discussed below, would be:
<bullet> Section I. Definitions for purposes of LMM Transaction
Fees and Credits
<bullet> Section II. LMM Base Fees and Credits per Share
<bullet> Section III. LMM Performance Metrics-based Incremental
Base Credit Adjustments
<bullet> Section IV. Additional Tape B Credits for LMMs and Market
Makers
Section I. Definitions for purposes of LMM Transaction Fees and Credits
In connection with the proposed rule change, the Exchange would add
new Section I titled ``Definitions for purposes of LMM Transaction Fees
and Credits'' that would set forth the following nine definitions:
1. ``CADV'' would mean the consolidated average daily volume in a
security in the prior month.
2. ``ETP'' would mean Exchange Traded Products listed on NYSE Arca.
3. ``ETP Price'' would mean the average Official Closing Price \14\
in that ETP in the prior month.
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\14\ With respect to equities traded on the Exchange, the term
``Official Closing Price'' means the reference price to determine
the closing price in a security. See NYSE Arca Rule 1.1(ll). NYSE
Arca Rule 1.1(ll) describes how the Official Closing Price is
determined.
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4. ``Less Active ETPs'' would mean ETPs that have a CADV in the
prior calendar quarter that is the greater of either less than 100,000
shares or less than 0.013% of Consolidated Tape B ADV.
5. ``Leveraged ETP'' would mean an ETP that tracks an underlying
index by a ratio other than on a one-to-one basis.
6. ``Maximum LMM Spread'' would mean time-weighted average LMM
spread (LMM Offer minus LMM Bid) divided by the average of the LMM Bid
and LMM Offer, in basis points.
7. ``Minimum LMM Shares within 1% of NBBO'' would mean the average
number of LMM shares quoted throughout the trading day that are within
1% of the National Best Bid and Best Offer divided by two.
8. ``Minimum LMM Shares at the Core Open Auction within 1.5% of the
Auction Reference Price'' would mean the average of LMM buy shares and
LMM sell shares for Limit Orders quoted within 1.5% of the Auction
Reference Price \15\ divided by two.
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\15\ The term ``Auction Reference Price'' is defined in NYSE
Arca Rule 7.35-E(a)(8)(A). NYSE Arca Rule 7.35-E(a)(8)(A) describes
how the Auction Reference Price is determined.
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9. ``Minimum LMM Shares at the Closing Auction within 1% of the
NBBO'' would mean the average number of LMM buy shares and LMM sell
shares for Limit Orders quoted within 1% of the National Best Bid and
Best Offer before the end of Core Trading Hours \16\ divided by two.
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\16\ With respect to equities traded on the Exchange, the term
``Core Trading Hours'' means the hours of 9:30 a.m. Eastern Time
through 4:00 p.m. (Eastern Time) or such other hours as may be
determined by the Exchange from time to time. See NYSE Arca Rule
1.1(j).
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The Exchange proposes these definitions to use consistent terms
throughout this section of the Fee Schedule relating to LMMs.
Section II. LMM Base Fees and Credits per Share
The Exchange proposes to add new Section II titled ``LMM Base Fees
and Credits per Share.'' The Exchange notes that the fees and credits
in proposed Section II are current fees and credits. The Exchange
proposes a non-substantive change to reorganize these current fees and
credits in a table format without any change to the level of the fees
and credits.
Specifically, the Exchange currently charges LMMs a base fee of
$0.0029 per share for orders that remove liquidity and provides the
following base credits:
<bullet> $0.0033 per share for orders that provide liquidity in
securities for which the LMM is registered as the LMM and which have a
CADV in the previous month greater than 3,000,000 shares;
<bullet> $0.0040 per share for orders that provide liquidity in
securities for which the LMM is registered as the LMM and which have a
CADV in the previous month of between 1,000,000 and 3,000,000 shares;
and
<bullet> $0.0045 per share for orders that provide liquidity in
securities for which the LMM is registered as the LMM and which have a
CADV in the previous month of less than 1,000,000 shares.
Additionally, LMMs are provided a credit of $0.0030 per share for
orders that provide undisplayed liquidity in Arca Only Orders \17\ in
securities for which the LMM is registered as the LMM, and a credit of
$0.0015 per share for Non-Displayed Limit Orders that provide liquidity
in securities for which the LMM is registered as the LMM. The Exchange
also does not charge LMMs a fee for orders executed in the Closing
Auction.
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\17\ The ``Arca Only Order'' has been renamed as the ``Non-
Routable Limit Order.'' See Securities Exchange Act Release No.
83967 (August 28, 2018), 83 FR 44984 (September 4, 2018) (SR-
NYSEArca-2018-61). Accordingly, the proposed new presentation would
utilize the new name ``Non-Routable Limit Orders'' instead of ``Arca
Only Orders.''
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The Exchange proposes to reorganize the presentation of the Fee
Schedule in order to enhance its clarity and transparency, thereby
making the Fee Schedule easier to navigate. With respect the current
LMM fees and credits discussed above, the Exchange proposes a
horizontal presentation in a table rather than the current vertical
presentation. The proposed changes described above would be included in
the new presentation under proposed
[[Page 29870]]
Section II titled LMM Base Fees and Credits per Share, without any
substantive change to the rate or the requirement to qualify for these
existing fees and credits. The proposed changes would appear as follows
in the Fee Schedule:
--------------------------------------------------------------------------------------------------------------------------------------------------------
Credit for adding
Credit for adding undisplayed
ETP CADV Credit for adding Fee for removing non-displayed liquidity in non- Fee for orders in the closing
liquidity liquidity limit orders routable limit auction
orders
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<1,000,000............................... ($0.0045) $0.0029 ($0.0015) ($0.0030) No Fee.
1,000,000 to 3,000,000................... ($0.0040) ................. ................. ................... ...............................
>3,000,000............................... ($0.0033) ................. ................. ................... ...............................
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Section III. LMM Performance Metrics-Based Incremental Base Credit
Adjustments
The Exchange proposes to adopt market quality metrics that LMMs
would be required to meet to qualify for incremental credits. Proposed
Section III titled ``LMM Performance Metrics-based Incremental Base
Credit Adjustments'' would provide a table of Performance Metrics that
LMMs would be required to meet to qualify for certain incremental
credits. LMMs that meet the Performance Metrics would be entitled to
enhanced credits based on the quality of the market provided by an LMM
in an ETP assigned to the LMM.
The Exchange proposes to adopt the following four Performance
Metrics that LMMs would be measured by:
1. Maximum LMM Spread. Maximum LMM Spread means time-weighted
average LMM spread (LMM Offer minus LMM Bid) divided by the average of
the LMM Bid and LMM Offer, in basis points;
2. Minimum LMM Shares within 1% of NBBO. Minimum LMM Shares within
1% of NBBO means the average number of LMM shares quoted throughout the
trading day that are within 1% of the National Best Bid and Best Offer
divided by two;
3. Minimum LMM Shares in Core Open Auction within 1.5% of Auction
Reference Price. Minimum LMM Shares at the Core Open Auction within
1.5% of the Auction Reference Price means the average of LMM buy shares
and LMM sell shares for Limit Orders quoted within 1.5% of the Auction
Reference Price divided by two; and
4. Minimum LMM Shares at the Closing Auction within 1% of the NBBO.
Minimum LMM Shares at the Closing Auction within 1% of the NBBO means
the average number of LMM buy shares and LMM sell shares for Limit
Orders quoted within 1% of the National Best Bid and Best Offer before
the end of Core Trading Hours divided by two.
As proposed, each ETP would be grouped based on its prior month
CADV and its price. An LMM would be considered to have met a
Performance Metric in an ETP assigned to the LMM in a billing month if
it meets the following:
Monthly Average LMM Performance Metrics
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Minimum LMM
shares in core Minimum LMM
Minimum LMM open auction shares at the
ETP CADV ETP price Maximum LMM shares within within 1.5% of closing
spread (bps) 1% of national auction auction within
BBO reference 1% of the
price national BBO
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>1,000,000.................... >$50............ 55 6,000 4,000 12,250
$25-$50......... 45 20,000 8,500 14,250
Under $25....... 40 42,000 22,000 30,000
100,001-1,000,000............. >$50............ 35 2,500 2,500 3,250
$25-$50......... 35 3,500 4,000 4,750
Under $25....... 65 10,000 5,750 7,250
10,000-100,000................ >$50............ 40 2,200 2,000 2,250
$25-$50......... 55 2,400 2,050 2,500
Under $25....... 70 4,000 2,200 4,500
Under 10,000.................. >$50............ 50 2,000 1,750 2,000
$25-$50......... 60 3,000 1,800 3,000
Under $25....... 75 3,000 1,800 3,000
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Under the proposal, the base credit earned by an LMM for Adding
Displayed Liquidity (as provided in Section II above) in an assigned
ETP would be adjusted based on the number of Performance Metrics met by
the LMM in the billing month for each assigned ETP, as follows:
------------------------------------------------------------------------
Incremental
Incremental base credit
base credit adjustment
Numbers of performance metrics met adjustment per
per ETP leveraged
ETP
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4........................................... ($0.0001) ($0.0001)
3........................................... (0.00005) (0.00005)
2........................................... 0.0000 0.0000
1........................................... 0.0001 0.0000
0........................................... 0.0002 0.0000
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The Performance Metrics illustrated above would apply to all ETPs,
including Leveraged ETPs. However, for Leveraged ETPs, there would be
no adjustment to the base credit payable to the LMM if the LMM meets 1
or 2 Performance Metrics or if the LMM does not meet any Performance
Metrics. LMMs that are registered as the LMM in a Leveraged ETF would
be able to earn an incremental credit of $0.00005 per share if the LMM
meets 3 of the 4 Performance Metrics, or earn an incremental credit of
$0.0001 per share
[[Page 29871]]
if the LMM meets all 4 Performance Metrics.
The following example illustrates how a LMM can earn an incremental
credit by meeting the Performance Metrics. Assume an LMM is registered
in an ETP that has a CADV of 500,000 shares and a price of $30, both in
the prior month. That LMM would currently be eligible for a base credit
for adding of $0.0045 per share.\18\ Given the profile of the ETP,
i.e., CADV of 500,000 shares and a price of $30, the LMM would have to
meet the following Performance Metrics to earn an incremental credit
(as illustrated in the Performance Metrics table above):
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\18\ Under proposed Section II. LMM Base Fees and Credits per
Share, ETPs that have a CADV of less than 1,000,000 shares receive
$0.0045 per share credit for adding displayed liquidity.
<bullet> Maximum LMM Spread (``Spread''): 35 basis points (``bps'')
<bullet> Minimum LMM Shares within 1% of Last Bid and Offer
(``Depth''): 3,500 shares
<bullet> Minimum LMM Shares at the Core Open Auction within 1.5% of the
Auction Reference Price (``Open Depth''): 4,000 shares
<bullet> Minimum LMM Shares at the Closing Auction within 1% of the
Last Bid & Offer (``Closing Depth''): 4,750 shares
Assume in the billing month, the LMM in this ETP had a Spread of 30
bps, Depth of 3,000 shares, Open Depth of 4,500 shares, and Closing
Depth of 5,000 shares. The LMM in this example met 3 of the 4
Performance Metrics (Spread, Open Depth, and Closing Depth) but did not
meet Depth. As a result, the LMM has qualified to earn an incremental
credit of $0.00005 per share, for a combined credit per share of
$0.00455.
The following example illustrates how a LMM registered as a LMM in
a Leveraged ETP can earn an incremental credit. Assume the same LMM as
in the example above was registered in a second ETP that is a Leveraged
ETP that also has a CADV of 500,000 shares and a price of $30, both in
the prior month. The LMM would currently be eligible for a base credit
for adding of $0.0045 per share. In this example, the profile of the
Leveraged ETP is the same as in the non-Leveraged ETP in the example
above.
Assume in the billing month, the LMM in the Leveraged ETP had a
Spread of 25 bps, Depth of 3,000 shares, Open Depth of 2,000 shares,
and Closing Depth of 2,500 shares. The LMM in this example has met just
1 of the 4 Performance Metrics and therefore, would not earn any
incremental credit. Since the credit payable to a LMM in a Leveraged
ETP would not be adjusted if the LMM meets only 1 or 2 Metrics, or does
not meet any Performance Metrics, the LMM in this example would
continue to receive the base credit of $0.0045 per share. If the LMM
had met at least 3 of the 4 Performance Metrics in the Leveraged ETP,
the LMM would have qualified for an incremental credit of $0.00005 per
share, for a combined credit of $0.00455 per share. And if the LMM had
met all 4 Performance Metrics in the Leveraged ETP, the LMM would have
qualified for an incremental credit of $0.0001 per share, for a
combined credit of $0.0046 per share.
Section IV. Additional Tape B Credits for LMMs and Market Makers
The Exchange proposes to add new Section IV titled ``Additional
Tape B Credits for LMMs and Market Makers.'' The Exchange notes that
the additional credits in proposed Section IV for LMMs are current; the
Exchange is not proposing any new additional credits for LMMs under
Section IV with this proposed rule change.
As more fully described below, the Exchange proposes a non-
substantive change to reorganize the presentation of the credits under
proposed Section IV. The Exchange also proposes two changes with
respect to the Section IV credits. First, the Exchange proposes that to
qualify for the additional credits available under Section IV, LMMs
would be required to meet at least two Performance Metrics per Less
Active ETP assigned to the LMM. Second, the Exchange proposes to make
additional credits available to Market Makers who meet the specified
Performance Metrics.
Non-Substantive Change
The Exchange currently provides LMMs, and ETP Holders affiliated
with such LMM, incremental credits for orders in Tape B Securities that
provide displayed liquidity in securities for which they are registered
as the LMM and in securities for which they are not registered as an
LMM based on the number of securities that have a CADV in the prior
calendar quarter of less than 100,000 shares, or 0.013% of Consolidated
Tape B ADV, whichever is greater (``Less Active ETPs'').\19\
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\19\ The number of Less Active ETPs for the billing month is
based on the number of Less Active ETPs in which an LMM is
registered as the LMM on the average of the first and last business
day of the previous month.
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These additional credits are as follows:
<bullet> An additional credit of $0.0004 per share if an LMM is
registered as the LMM in at least 400 Less Active ETPs or at least 300
Less Active ETPs if the LMM and ETP Holders and Market Makers
affiliated with such LMM add liquidity in all securities of at least
1.00% of US CADV. This credit would appear in the proposed Less Active
table under proposed Section IV as Tier 1 without any substantive
change to the amount of the credit.
<bullet> An additional credit of $0.0003 per share if an LMM is
registered as the LMM in at least 200 but less than 400 Less Active
ETPs or in at least 200 but less than 300 Less Active ETPs if the LMM
and ETP Holders and Market Makers affiliated with such LMM add
liquidity in all securities of at least 1.00% of US CADV. This credit
would appear in the proposed Less Active table under proposed Section
IV as Tier 2 without any substantive change to the amount of the
credit.
<bullet> An additional credit of $0.0002 per share if an LMM is
registered as the LMM in at least 100 but less than 200 Less Active
ETPs. This credit would appear in the proposed Less Active table under
proposed Section IV as Tier 3 without any substantive change to the
amount of the credit.
<bullet> An additional credit of $0.0001 per share if an LMM is
registered as the LMM in at least 75 but less than 100 Less Active
ETPs. This credit would appear in the proposed Less Active table under
proposed Section IV as Tier 4 without any substantive change to the
amount of the credit.
<bullet> An additional credit of $0.00005 per share if an LMM is
registered as the LMM in at least 50 but less than 75 Less Active ETPs.
This credit would appear in the proposed Less Active table under
proposed Section IV as Tier 5 without any substantive change to the
amount of the credit.
As noted above, the Exchange proposes to reorganize the
presentation of the incremental credits described above in a table
rather than the current vertical presentation in order to enhance its
clarity and transparency.
Performance Metrics-Based Tape B Credits
As noted above, the Exchange currently provides tier-based
incremental credits to LMMs and to ETP Holders affiliated with the LMM
that provide displayed liquidity in Tape B securities. A LMM can earn
anywhere between $0.00005 per share to $0.0004 per share of incremental
credits depending on the number of Less Active ETP Securities in which
an LMM is registered as the LMM.
As proposed, LMMs would be able to earn an additional credit on all
Tape B Securities if the LMM meets at least two Performance Metrics in
each of the Less
[[Page 29872]]
Active ETPs in which they are registered as the LMM.
The number of Less Active ETPs for a billing month would be
calculated as the average number of Less Active ETPs in which an LMM is
registered on the first and last business day of the previous month.
To determine which Less Active ETP Tier would apply to an LMM, the
Exchange would count the number of Less Active ETPs assigned to that
LMM, as follows:
Each Less Active ETP in which an LMM is registered and meets at
least two Performance Metrics would count as one Less Active ETP. Each
Less Active ETP that is a Leveraged ETP in which an LMM is registered
would count as one Less Active ETP regardless of the number of
Performance Metrics met.
The Exchange also proposes that Market Makers would be eligible to
earn this additional credit on all Tape B securities if:
<bullet> The Market Maker notifies the Exchange on or before the
first trading day that the additional credit is available in a calendar
month of which new Less Active ETPs for which the Marker Maker is
registered that it would be seeking to count towards or remove from
qualifying for this additional credit in that month.
<bullet> The Market Maker cannot also be the registered LMM in a
Less Active ETP that it is seeking to count to qualify for the
additional credit as a Market Maker.
<bullet> Every two Less Active ETPs that a Market Maker identifies
and meets at least two Performance Metrics will count as one Less
Active ETP for purposes of determining the applicable additional
credit.
<bullet> If an ETP Holder is both an LMM and a Market Maker in Less
Active ETPs and has notified the Exchange of Less Active ETPs that it
seeking to count for the additional credit as a Market Maker, the
number of Less Active ETPs calculated for the Market Maker above will
be combined with the number of Less Active ETPs in which the LMM is
registered.
The Exchange believes that offering this incentive program to
Market Makers would promote the additional display of liquidity in Less
Active ETPs that list and trade on the Exchange. The Exchange notes
that Market Makers would need to meet Performance Metrics in more Less
Active ETPs than the assigned LMMs in order to achieve the same level
of additional credit.
The changes described above would be included under proposed new
Section IV and would appear as follows on the Fee Schedule:
------------------------------------------------------------------------
Additional
Number of less active credit on all
Less active ETP tiers ETPs per LMM/Market Tape B
Maker Securities
------------------------------------------------------------------------
Tier 5......................... 50-74 ETPs............. ($0.00005)
Tier 4......................... 75-99 ETPs............. (0.0001)
Tier 3......................... 100-199 ETPs........... (0.0002)
Tier 2......................... 200-399 ETPs, or 200- (0.0003)
299 ETPs if the LMM or
Market Maker and its
affiliates add
liquidity of at least
1.00% of US CADV.
Tier 1......................... At Least 400 ETPs, or (0.0004)
at least 300 ETPs if
the LMM or Market
Maker and its
affiliates add
liquidity of at least
1.00% of US CADV.
------------------------------------------------------------------------
The following example illustrates the applicability of the expanded
eligibility of additional Tape B credits to LMMs and Market Makers that
meet a certain number of Performance Metrics.
Assume a LMM is registered in 120 Less Active ETPs. Currently, that
LMM would qualify for an additional credit of $0.0002 per share for
adding liquidity in all Tape B Securities under the Less Active ETP
Tier 3 in the table above. Assume further that of those 120 Less Active
ETPs, the LMM meets at least two Performance Metrics in 90 of those
Less Active ETPs, and does not meet at least two Performance Metric in
the other 30 Less Active ETPs. The LMM in this example would qualify
for Less Active ETP Tier 4 and would receive an incremental credit of
$0.0001 per share for adding liquidity on all Tape B Securities. If the
LMM in this example seeks to qualify as a Market Maker in another 50
Less Active ETPs, and as a Market Maker, the LMM meets at least two
Performance Metrics in 40 of its non-registered Less Active ETPs, then
those 40 Less Active ETPs would count as 20 Less Active ETPs for a
combined total number of Less Active ETPs of 110 Less Active ETPs (90
Less Active ETPs as LMM + 20 Less Active ETPs as Market Maker). The LMM
would then qualify for Less Active ETP Tier 3 and would receive an
incremental credit of $0.0002 per share for adding liquidity on all
Tape B Securities.
The following example illustrates how a Market Maker that is not an
LMM can receive the incremental credits. Assume a Market Maker notifies
the Exchange that it is seeking to qualify in 180 Less Active ETPs.
Assume further that the Market Maker meets at least 2 Performance
Metrics in 160 Less Active ETPs, and does not meet at least 2
Performance Metrics in the other 20 Less Active ETPs, for a total of 80
Less Active ETPs since every two Less Active ETPs that a Market Maker
identifies and meets at least two Performance Metrics count as one Less
Active ETP for purposes of determining which Less Active ETP tier
applies to the Market Maker. The Market Maker in this example would
qualify under Less Active Tier 4 for an incremental credit of $0.0001
per share for adding liquidity in all Tape B securities.
The Exchange believes the proposed rule change would enhance market
quality on all NYSE Arca-listed Securities by incentivizing LMMs and
Market Makers to meet the Performance Metrics across all Less Active
ETPs, which would support the quality of price discovery in such
securities on the Exchange and provide additional liquidity for
incoming orders for the benefit of all market participants. The
Exchange believes that providing increased credits to LMMs and ETP
Holders that are affiliated with a LMM that add liquidity in Tape B
Securities to the Exchange could lead to more LMMs to register to quote
and trade in Less Active ETP Securities. The Exchange believes the
proposed financial incentives could also encourage competition in Tape
B Securities quoted and traded on the Exchange.
The Exchange does not know how much order flow LMMs and Market
Makers choose to route to other exchanges or to off-exchange venues.
The proposed credits in NYSE Arca-listed Securities would be available
to all LMMs and Market Makers that are registered in those securities
and are subject to the obligations specified in Rule 7.23-E relating to
Market Makers. There are currently seven LMMs that
[[Page 29873]]
would qualify for the incremental credits. Without having a view of
their activity on other markets and off-exchange venues, the Exchange
has no way of knowing whether this proposed rule change would result in
more LMMs and Market Makers sending their orders in NYSE Arca-listed
Securities to the Exchange to qualify for the existing credits or
whether this proposed rule change would result in these members sending
more of their orders in NYSE Arca-listed Securities to the Exchange to
qualify for the proposed incremental credits. The Exchange cannot
predict with certainty how many LMMs and Market Makers would avail
themselves of this opportunity, but additional liquidity-providing
orders would benefit all market participants because it would provide
greater execution opportunities on the Exchange.
The proposed rule change is also intended to incentivize LMMs to
increase auction liquidity in less liquid NYSE Arca-listed Securities
to support price discovery in the Exchange's opening and closing
auctions for the benefit of all market participants. The Exchange
believes that the proposed rule change could lead to more LMMs to
register in less liquid securities and encourage greater participation
in the opening and closing auctions on the Exchange.
The Exchange believes the proposed rule change would also to
provide superior market quality and price discovery for NYSE Arca-
listed Securities, specifically securities that are less active,
through a quoting size requirement that would promote liquidity in the
opening and closing auction in such securities. The proposed rule
change is intended to provide a more meaningful incentive to both LMMs
and ETP Holders to provide liquidity in less active securities by
providing financial incentives to the Exchange's members as long as
they meet certain prescribed quoting criteria. The Exchange believes
that a performance-driven incentive would encourage such members to
provide meaningful quotes and size in less active securities listed and
traded on the Exchange.
Additionally, for newly listed and low volume ETPs, the cost to a
firm for making a market, such as holding inventory in the security, is
often not fully offset by the revenue through rebates provided by the
Exchange. In some cases, firms may even operate at a loss in new and
low volume ETPs. The Exchange believes the proposed credits, which
would compensate members as long as they meet the prescribed
performance metrics, is a more deterministic program from a member's
perspective. The member would decide how many, if any, low volume
securities it wants to provide tight and deep markets in. The more
securities the member provides heightened quoting in, the more the
member could collect in the form of a rebate.
The proposed changes are not otherwise intended to address any
other issues, and the Exchange is not aware of any significant problems
that market participants would have in complying with the proposed
changes.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\20\ in general, and furthers the
objectives of Sections 6(b)(4) and (5) of the Act,\21\ 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. The Exchange also notes that
its ETP listing business operates in a highly-competitive market in
which market participants, which includes LMMs and ETP Holders, as well
as ETP issuers, can readily transfer their listings or opt not to
participate, respectively, if they deem fee levels, liquidity provision
incentive programs, or any other factor at a particular venue to be
insufficient or excessive. The proposed rule change reflects a
competitive pricing structure designed to incentivize issuers to list
new products and transfer existing products to the Exchange and market
participants to enroll and participate as LMMs on the Exchange, which
the Exchange believes will enhance market quality in all ETPs listed on
the Exchange.
---------------------------------------------------------------------------
\20\ 15 U.S.C. 78f(b).
\21\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
The Proposed Fee Change is Reasonable
The Exchange believes that the proposal to adopt market quality-
based incentives is a reasonable means to incentivize liquidity
provision in ETPs listed on the Exchange. The marketplace for listings
is extremely competitive and the Exchange is not the only venue for
listing ETPs. Competition in ETPs is further exacerbated by the fact
that listings can and do transfer from one listing market to another.
The proposed rule change is intended to help the Exchange compete as a
listing venue for ETPs. Further, the Exchange notes that the proposed
incentives are not transaction fees, nor are they fees paid by
participants to access the Exchange. Rather, the proposed rebates are
based on achieving certain objective market quality metrics. The
Exchange believes providing rebates that are based on the quality of
the market in individual ETPs that generally have low volume will allow
ETP Holders to anticipate their revenue and will incentivize them to
provide tight and deep markets in those securities.
Given the novelty of the proposed rule change, the Exchange cannot
be certain that LMMs and Market Makers will choose to actively compete
for these incentives. For LMMs and Market Makers that do choose to
actively participate by providing deep and tight markets in Less Active
ETP Securities, the Exchange expects those members to receive payments
comparable to what they currently receive, with the potential for
additional upside when they meet the Performance Metrics in a greater
number of less active securities. The Exchange believes the proposed
credits, which would compensate LMMs and Market Makers as long as they
meet the prescribed Performance Metrics, is also reasonable because it
is a more deterministic program from an ETP Holder's perspective.
The Exchange believes the proposed rule change is intended to
encourage LMMs and Market Makers to promote price discovery and market
quality in Less Active ETP Securities for the benefit of all market
participants. The Exchange believes the proposed rule change is
reasonable and appropriate in that the credits are based on the amount
of business transacted on the Exchange. The Exchange notes that the
proposed incremental credits offered by the Exchange is similar to
market quality incentive programs already in place on other markets,
such as the Designated Liquidity Provider incentives on the Nasdaq
Stock Market LLC (``Nasdaq''), which requires a member on that exchange
to provide meaningful and consistent support to market quality and
price discovery in low volume exchange-traded products by quoting at
the National Best Bid and Offer and adding liquidity in a minimum
number of such securities. In return, Nasdaq provides the member with
an incremental rebate.\22\ The Exchange believes that providing
increased credits to LMMs and Market Makers that add liquidity in Tape
B Securities to the Exchange is reasonable because the Exchange
believes that by providing
[[Page 29874]]
increased rebates to such members, more of them will register to quote
and trade in Less Active ETP Securities. The Exchange believes the
proposed incremental credit for adding liquidity is also reasonable
because it will encourage liquidity and competition in Tape B
Securities quoted and traded on the Exchange. Moreover, the Exchange
believes that the proposed fee change will incentivize LMMs and Market
Maker to register as either an LMM or Market Maker in Less Active ETP
Securities and thus, add more liquidity in Tape B Securities to the
benefit of all market participants.
---------------------------------------------------------------------------
\22\ See Equity 7 Pricing Schedule, Section 114. Market Quality
Incentive Programs, at <a href="https://listingcenter.nasdaq.com/rulebook/nasdaq/rules/Nasdaq%20Equity%207#section_114_market_quality_incentive_programs">https://listingcenter.nasdaq.com/rulebook/nasdaq/rules/Nasdaq%20Equity%207#section_114_market_quality_incentive_programs</a>.
---------------------------------------------------------------------------
The Exchange believes that providing additional credits to Market
Makers that add liquidity in Less Active ETPs is reasonable because the
Exchange believes that by providing such additional credits, more
Market Makers would choose to register in Less Active ETP Securities on
the Exchange, which the Exchange believes would benefit all market
participants. As noted above, because Market Makers registered in a
security must meet the quoting obligations specified in Rule 7.23-E,
expanding eligibility to Market Makers to receive credits is a
reasonable attempt to increase participation on the Exchange and
provide an incentive for Market Makers to meet additional standards for
their registered Less Active ETPs.
Submission of additional liquidity to the Exchange would promote
price discovery and transparency and enhance order execution
opportunities for LMMs and Market Makers from the substantial amounts
of liquidity present on the Exchange. All participants would benefit
from the greater amounts of liquidity that will be present on the
Exchange, which would provide greater execution opportunities.
The Exchange believes that eliminating the existing monthly rebate
tied to the performance in the opening and closing auctions in NYSE
Arca-listed Securities and the ETF Incentive Program for NYSE Arca-
listed Securities is reasonable because those pricing incentives did
not the achieve their intended purpose of incentivizing LMMs and ETP
Holders to send a greater number of their orders in Tape B Securities
to the Exchange. The Exchange believes replacing the monthly rebate
program and the ETF Incentive Program with pricing incentives tied to
Performance Metrics discussed above will allow the Exchange to better
maintain its competitive standing. On the backdrop of the competitive
environment in which the Exchange currently operates, the proposed rule
change is a reasonable attempt to increase liquidity on the Exchange
and improve the Exchange's market share relative to its competitors.
Finally, the Exchange believes the proposed non-substantive changes
to relocate existing fees and credits into a table format is reasonable
and would not be inconsistent with the public interest and the
protection of investors because investors will not be harmed and in
fact would benefit from increased clarity and transparency of the Fee
Schedule, thereby reducing potential confusion.
The Proposed Fee Change is an Equitable Allocation of Fees and Credits
The Exchange believes the proposed rule change is equitable because
the proposal would provide discounts that are reasonably related to the
value to the Exchange's market quality associated with higher volumes
in Less Active ETP Securities. The Exchange further believes that the
proposed incremental rebate is equitable because it is consistent with
the market quality and competitive benefits associated with the fee
program and because the magnitude of the additional rebate is not
unreasonably high in comparison to the rebate paid with respect to
other displayed liquidity-providing orders. The Exchange believes that
it is equitable to offer increased rebates to LMMs and Market Makers as
both are currently subject to obligations specified in Rule 7.23-E,
which are not applicable to non-Market Maker ETP Holders, and they
would be subject to additional requirements and obligations (such as
meeting Performance Metrics) that other market participants are not.
The Exchange believes that the proposal to offer rebates tied to
market quality metrics represents an equitable allocation of payments
because LMMs and Market Makers would be required to not only meet their
Rule 7.23-E obligations, but also meet prescribed quoting requirements
in order to qualify for the payments, as described above. Where an LMM
or Market Maker does not meet at least two Performance Metrics, that
member will not receive any additional financial benefit. Further, all
LMMs and Market Makers on the Exchange are eligible to participate and
could do so by simply registering in a Less Active ETP and meeting the
proposed market quality metrics. The Exchange has designed the proposed
pricing incentives to be sustainable over the long-term and generally
expects that payments made to LMMs and Market Makers will be comparable
to payments the Exchange currently makes to its members and comparable
to pricing incentives offered by the Exchange's competitors. As such,
the Exchange believes that the proposal represents an equitable
allocation of dues, fees and credits.
The Exchange believes that eliminating the existing monthly rebate
tied to the performance in the opening and closing auctions in NYSE
Arca-listed Securities and the ETF Incentive Program for NYSE Arca-
listed Securities is equitable because the Exchange is eliminating
those pricing incentives for all participants.
The Proposed Fee Change is not Unfairly Discriminatory
The Exchange believes that the proposed rule change is not unfairly
discriminatory. In the prevailing competitive environment, LMMs and
Market Makers are free to disfavor the Exchange's pricing if they
believe that alternatives offer them better value.
The Exchange believes it is not unfairly discriminatory to adopt
incremental credits applicable to LMMs and Market Makers because both
are already subject to additional obligations, as specified in Rule
7.23-E, and the proposed additional credits would be provided on an
equal basis to all similarly situated participant provided each such
participant meets the prescribed market quality metrics. If an LMM or
Market Maker does not meet the required number of Performance Metrics,
the member would not receive any incremental credit. Further, the
Exchange believes the incremental credit would incentivize each of
these participants to register in Less Active ETPs and send more orders
to the Exchange to qualify for higher credits. The Exchange also
believes that the proposed rule change is not unfairly discriminatory
because it is reasonably related to the value to the Exchange's market
quality associated with higher volume.
The proposal to offer an additional credit tied to meeting certain
market quality requirements neither targets nor will it have a
disparate impact on any particular category of market participant. The
proposal does not permit unfair discrimination because LMMs and Market
Makers already have increased obligations vis-[agrave]-vis non-Market
Maker ETP Holders, as specified in Rule 7.23-E, and the proposed
requirements would be applied to all similarly-situated LMMs and Market
Maker equally. In addition, the proposed incentives for LMMs replace
the existing incentive structure, which is already available only for
LMMs. The Exchange does not believe it would be unfairly discriminatory
to extend the availability of additional credits for
[[Page 29875]]
Tape B securities to Market Makers because Market Makers have
obligations under Rule 7.23-E, and pursuant to the proposed change,
would need to meet additional performance requirements in order to
qualify for the additional credit.
The Exchange believes that the proposed rule change is not unfairly
discriminatory because all LMMs and Market Makers that choose to
qualify for the incremental credits would be required to meet a minimum
number of Performance Metrics in order to receive the credits. Where a
participant does not achieve a certain number of Performance Metrics,
it will not receive any incremental credits. Further, all LMMs and
Market Makers on the Exchange are eligible to participate in the
program and could do so by simply registering in Less Active ETPs and
meeting a minimum number of Performance Metrics. The Exchange has
designed the pricing incentives proposed herein to be sustainable over
the long-term and generally expects that payments made to LMMs and
Market Makers would be comparable to payments the Exchange currently
makes to its LMMs and comparable to pricing incentives offered by the
Exchange's competitors. As such, the Exchange believes that the
proposal is not unfairly discriminatory.
The Exchange believes that eliminating the existing monthly rebate
tied to the performance in the opening and closing auctions in NYSE
Arca-listed Securities and the ETF Incentive Program for NYSE Arca-
listed Securities is not unfairly discriminatory because the Exchange
is eliminating both pricing incentives for all participants.
Finally, subject to their obligations specified in Rule 7.23-E, the
submission of additional orders to the Exchange is optional for LMMs
and Market Makers in that they could choose the level of trading
activity on the Exchange. 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,\23\ 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 additional
liquidity to a public exchange, thereby promoting market depth, price
discovery and transparency and enhancing order execution opportunities
for LMMs and ETP Holders. 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 promotes
``more efficient pricing of individual stocks for all types of orders,
large and small.'' \24\
---------------------------------------------------------------------------
\23\ 15 U.S.C. 78f(b)(8).
\24\ See Securities Exchange Act Release No. 51808, 70 FR 37495,
37498-99 (June 29, 2005) (S7-10-04) (Final Rule).
---------------------------------------------------------------------------
Intramarket Competition. The proposed change is designed to attract
additional order flow to the Exchange. The Exchange believes that the
proposed Performance Metrics-based incremental credit applicable to
LMMs and Market Makers in Less Active ETPs in which they are registered
would continue to incentivize market participants to direct their
displayed order flow to the Exchange. Greater liquidity benefits all
market participants on the Exchange by providing more trading
opportunities and encourages LMMs and Market Makers to send additional
orders to the Exchange, thereby contributing to robust levels of
liquidity, which benefits all market participants. The proposed pricing
incentive would be applicable to all similarly-situated market
participants that have obligations under Rule 7.23-E to meet specified
obligations, and, as such, the proposed changes would not impose a
disparate burden on competition among market participants on the
Exchange. The Exchange believes the proposed adoption of Performance
Metrics would enhance competition as it is intended to increase the
Exchange's competitiveness in Less Active ETPs, and all LMMs and Market
Makers would be able to participate on an equal basis. Accordingly, the
Exchange does not believe that the proposed change will impair the
ability of ETP Holders to maintain their competitive standing. The
Exchange does not believe that the proposed change represents a
significant departure from previous pricing offered by the Exchange or
its competitors. The Exchange also does not believe the proposed rule
change to eliminate underutilized pricing incentives will impose any
burden on intramarket competition because the proposed change would
impact all LMMs and Market Makers uniformly.
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 levels at those other venues to be more favorable. As noted
above, the Exchange's market share of intraday trading (i.e., excluding
auctions) is currently less than 10%. 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 its proposed fee 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 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) \25\ of the Act and subparagraph (f)(2) of Rule
19b-4 \26\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
---------------------------------------------------------------------------
\25\ 15 U.S.C. 78s(b)(3)(A).
\26\ 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 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) \27\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------
\27\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------
[[Page 29876]]
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
<bullet> Use the Commission's internet comment form (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#bccec9d0d991dfd3d1d1d9d2c8cffccfd9df92dbd3ca"><span class="__cf_email__" data-cfemail="f486819891d9979b9999919a8087b4879197da939b82">[email protected]</span></a>. Please include
File No. SR-NYSEArca-2021-43 on the subject line.
Paper Comments
<bullet> 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 No. NYSEArca-2021-43. 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 (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>).
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 No. NYSEArca-2021-43, and should be submitted on
or before June 24, 2021.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\28\
---------------------------------------------------------------------------
\28\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-11611 Filed 6-2-21; 8:45 am]
BILLING CODE 8011-01-P
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