Notice2021-17304
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify the NYSE Arca Options Fee Schedule
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
August 13, 2021
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 86 Issue 154 (Friday, August 13, 2021)</title>
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[Federal Register Volume 86, Number 154 (Friday, August 13, 2021)]
[Notices]
[Pages 44765-44766]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-17304]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-92614; No. SR-NYSEArca-2021-69]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Modify the NYSE
Arca Options Fee Schedule
August 9, 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 August 4, 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 modify the NYSE Arca Options Fee Schedule
(``Fee Schedule''). The Exchange proposes to implement the fee change
effective August 4, 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 purpose of this filing is to amend the Fee Schedule to remove
language associated with a fee waiver and a credit that expired at the
close of business on June 30, 2021.
On March 18, 2020, the Exchange announced that it would temporarily
close the Trading Floor, effective March 23, 2020, as a precautionary
measure to prevent the potential spread of COVID-19. Following the
temporary closure of the Trading Floor, the Exchange waived certain
Floor-based fixed fees for April and May 2020.\4\ Although the Trading
Floor partially reopened on May 4, 2020 and Floor-based open outcry
activity was supported, certain participants were unable to resume pre-
Floor closure levels of operations. As a result, the Exchange extended
the fee waiver through June 2021, but only for Floor Broker firms that
were unable to operate at more than 50% of their March 2020 on-Floor
staffing levels and for Market Maker firms that had vacant or
``unmanned'' Podia for the entire month due to COVID-19 related
considerations (the ``Qualifying Firms'').\5\
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\4\ See Securities Exchange Act Release Nos. 88596 (April 8,
2020), 85 FR 20796 (April 14, 2020) (SR-NYSEArca-2020-29); 88812
(May 5, 2020), 85 FR 27787 (May 11, 2020) (SR-NYSEArca-2020-38).
\5\ See Securities Exchange Act Release Nos. 89038 (June 10,
2020), 85 FR 36447 (June 16, 2020) (SR-NYSEArca-2020-52); 89242
(June 7, 2020), 85 FR 42037 (July 13, 2020) (SR-NYSEArca-2020-60);
89480 (August 5, 2020), 85 FR 48591 (August 11, 2020) (SR-NYSEArca-
2020-69); 89694 (August 27, 2020), 85 FR 54608 (September 2, 2020)
(SRNYSEArca-2020-76); 90191 (October 15, 2020), 85 FR 67032 (October
21, 2020) (SRNYSEArca-2020-90); 90838 (December 31, 2020), 86 FR 657
(January 6, 2021) (SRNYSEArca-2020-115), 91372 (March 18, 2021) 86
FR 15980 (March 25, 2021) (SR-NYSEArca-2021-18).
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Because the Trading Floor continued to operate with reduced
capacity, the Exchange extended the fee waiver for Qualifying Firms
through ``the earlier of the first full month of a full reopening of
the Trading Floor facilities to Floor personnel or June 2021''. The
Trading Floor re-opened without social distancing requirements for
vaccinated personnel on May 12, 2021.
Additionally, in May 2021, the Exchange implemented an incentive to
encourage Floor Brokers to increase their Professional Customer
billable volume.\6\ Specifically, the Exchange offered Floor Brokers a
credit of $0.13 per contract for each billable
[[Page 44766]]
Professional Customer contract that exceeded a baseline average daily
volume for the month. This fee incentive was adopted with a stated
expiration at the close of business on June 30, 2021.
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\6\ See Exchange Act Release No. 91936 (May 19, 2021) 86 FR
28178 (May 25, 2021) (SR-NYSEArca-2021-41).
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As the expiration date for both the fee waiver and the fee
incentive has passed, the Exchange is submitting this proposed rule
change to remove language related to the fee waiver and the fee
incentive from the Fee Schedule.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\7\ in general, and furthers the
objectives of Sections 6(b)(4) and (5) of the Act,\8\ 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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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(4) and (5).
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The Exchange believes that the proposed modifications to the Fee
Schedule to remove an expired fee waiver and an expired fee incentive
that the Exchange no longer offers are reasonable, equitable, and not
unfairly discriminatory because the changes would provide clarity to
the Fee Schedule, and do not affect any current activity by any OTP
Holder or OTP Firm.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act, the Exchange does
not believe that the proposed rule change would impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act. Instead, the proposed change is meant to add
clarity and transparency to the Fee Schedule to the benefit of all
market participants that trade on the Exchange.
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) \9\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \10\ thereunder, because it establishes a due, fee, or other charge
imposed by the Exchange.
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 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) \11\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\11\ 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
<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#7200071e175f111d1f1f171c0601320117115c151d04"><span class="__cf_email__" data-cfemail="dba9aeb7bef6b8b4b6b6beb5afa89ba8beb8f5bcb4ad">[email protected]</span></a>. Please include
File Number SR-NYSEArca-2021-69 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 Number SR-NYSEArca-2021-69. 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 Number SR-NYSEArca-2021-69, and should be
submitted on or before September 3, 2021.
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\12\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-17304 Filed 8-12-21; 8:45 am]
BILLING CODE 8011-01-P
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