Notice2022-02314
Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Change To Amend the NYSE American 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
February 4, 2022
Issuing agencies
Securities and Exchange Commission
Full Text
<html>
<head>
<title>Federal Register, Volume 87 Issue 24 (Friday, February 4, 2022)</title>
</head>
<body><pre>
[Federal Register Volume 87, Number 24 (Friday, February 4, 2022)]
[Notices]
[Pages 6639-6643]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-02314]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-94104; File No. SR-NYSEAMER-2022-09]
Self-Regulatory Organizations; NYSE American LLC; Notice of
Filing and Immediate Effectiveness of Proposed Change To Amend the NYSE
American Options Fee Schedule
January 31, 2022.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that, on January 21, 2022, NYSE American LLC (``NYSE American'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend the NYSE American Options Fee
Schedule (``Fee Schedule'') regarding incentives relating to Complex
Customer Best Execution Auctions. The Exchange proposes to implement
the fee change effective January 21, 2022.\4\ The proposed 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.
---------------------------------------------------------------------------
\4\ The Exchange originally filed to amend the Fee Schedule on
December 29, 2021 (SR-NYSEAmer-2021-53), with an effective date of
January 3, 2022, then withdrew such filing on January 12, 2022 (SR-
NYSEAmer-2022-05), which latter filing the Exchange withdrew on
January 21, 2022.
---------------------------------------------------------------------------
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
[[Page 6640]]
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 modify the Fee Schedule regarding
the qualifications for (1) the Alternative Initiating Participant
Rebate, as set forth in Section I.G. (the ``Rebate''), and (2) the
credit on Customer Electronic Simple and Complex executions set forth
in Section I.H (the ``Credit'').
As further discussed below, the proposed changes are designed to
encourage ATP Holders to initiate Complex Customer Best Execution
(``CUBE'') Auctions while also maintaining levels of both Customer and
Professional Electronic volume.\5\
---------------------------------------------------------------------------
\5\ For purposes of this filing, ``Professional'' Electronic
volume includes: Professional Customer, Broker Dealer, Non-NYSE
American Options Market Maker, and Firm.
---------------------------------------------------------------------------
The Exchange proposes to implement this fee change on January 21,
2022.
Proposed Rule Change
Alternative Initiating Participant Rebate
Section I.G. of the Fee Schedule sets forth the per contract fees
and credits for executions associated with Single-Leg and Complex CUBE
Auctions. To encourage participation in Complex CUBE Auctions, the
Exchange offers rebates on certain initiating Complex CUBE volume.
Currently, the Exchange offers the ACE Initiating Participant Rebate to
ATP Holders that also qualify for the American Customer Engagement
(``ACE'') Program \6\ and an Alternative Initiating Participant Rebate
(the ``Rebate'') for ATP Holders that do not qualify for the ACE
program.\7\ Both the ACE Initiating Participant Rebate and the Rebate
for Complex CUBE orders provide for a rebate of $0.10 per contract, and
an ATP Holder that qualifies for both rebates is entitled to only the
greater of the two.\8\
---------------------------------------------------------------------------
\6\ See Fee Schedule, Section I.E., American Customer Engagement
(``ACE'') Program, available at: <a href="https://www.nyse.com/publicdocs/nyse/markets/american-options/NYSE_American_Options_Fee_Schedule.pdf">https://www.nyse.com/publicdocs/nyse/markets/american-options/NYSE_American_Options_Fee_Schedule.pdf</a>.
\7\ See id. at Section I.G., CUBE Auction Fees and Credits,
Complex CUBE Auction.
\8\ See id.
---------------------------------------------------------------------------
Currently, to qualify for the Rebate, an ATP Holder must execute a
minimum of 5,000 contracts ADV in the Professional range (as defined in
Section I.H. of the Fee Schedule) and execute a minimum of 15,000
contracts ADV from Initiating CUBE Orders in Single-Leg and/or Complex
CUBE Auctions.\9\
---------------------------------------------------------------------------
\9\ See id.
---------------------------------------------------------------------------
The Exchange proposes to modify the qualifications to earn the
Rebate by decreasing the required volume in Initiating CUBE Orders from
15,000 ADV from Initiating CUBE Orders in Single-Leg and/or Complex
CUBE Auctions to 10,000 ADV in Initiating CUBE orders from Complex CUBE
Auctions only. The Exchange proposes to modify this qualification to be
based only on Initiating CUBE Orders in Complex CUBE Auctions in order
to encourage increased participation in Complex CUBE Auctions. The
Exchange also proposes to delete the requirement to execute a minimum
of 5,000 contracts ADV in the Professional range and proposes two
additional qualifications to earn the Rebate. The Exchange proposes
these changes to align the requirements for this incentive with those
for the Credit (as further discussed below). Specifically, the Exchange
proposes to require, in addition to the volume requirement with respect
to Initiating CUBE Orders in Complex CUBE Auctions, that an ATP Holder
also achieve Customer Electronic executions of 0.05% of TCADV
(excluding CUBE Auctions, QCC Transactions, and volume from orders
routed to another exchange) and Professional (as defined in Section
I.H. of the Fee Schedule) Electronic executions of 0.03% of TCADV
(excluding CUBE Auctions, QCC Transactions, and volume from orders
routed to another exchange). The Exchange proposes to exclude CUBE
Auctions, QCC Transactions, and volume from orders routed to another
exchange from the calculations of Customer Electronic and Professional
Electronic volume, consistent with exclusions set forth elsewhere in
the Fee Schedule.\10\ The Exchange proposes to exclude volume from CUBE
Auctions, QCC Transactions, and orders routed to another exchange
because volume from such transactions would be subject to separate
pricing.\11\ The Exchange does not propose to modify the amount of the
Rebate (which will remain at $0.10 per contract), and an ATP Holder
that qualifies for both the ACE Initiating Participant Rebate and the
Rebate will continue to be entitled only to the greater of the two
rebates.
---------------------------------------------------------------------------
\10\ See, e.g., Fee Schedule, Section I.C., NYSE American
Options Market Maker Sliding Scale--Electronic (excluding volumes
attributable to QCC trades and CUBE Auctions from calculation of
Market Maker Electronic monthly volumes); Section I.E., American
Customer Engagement (``ACE'') Program (excluding volume resulting
from QCC trades and volume attributable to orders routed to another
exchange from calculation of an OFP's Electronic volume); Section
I.H., Professional Step-Up Incentive (excluding volumes from CUBE
Auctions and QCC transactions from the calculation of base volume
and qualifying volume for the incentive).
\11\ See Fee Schedule, Sections I.F. (setting forth fees and
credits for QCC trades) and I.G. (setting forth fees and credits for
CUBE Auctions). Volume from orders routed to another exchange would
be subject to pricing set forth by such exchange.
---------------------------------------------------------------------------
Credit on Customer Electronic Simple and Complex Executions
The Exchange also proposes to modify the qualifications to earn the
Credit. Currently, the Credit provides that ATP Holders are eligible to
receive a credit of $0.10 per contract on Customer Electronic Simple
and Complex executions, excluding CUBE Auctions, QCC Transactions, and
volume from orders routed to another exchange, by meeting each of the
following monthly qualification levels: (a) 15,000 contracts ADV from
Initiating CUBE Orders in Complex CUBE Auctions; (b) Customer
Electronic executions of 0.05% of TCADV, excluding CUBE Auctions, QCC
Transactions, and volume from orders routed to another exchange; and
(c) Professional Electronic executions of 0.03% of TCADV.\12\
---------------------------------------------------------------------------
\12\ See Fee Schedule, Section I.H. In calculating an OFP's
Electronic volume, the Exchange will include the activity of either
(i) Affiliates of the OFP, such as when an OFP has an Affiliated
NYSE American Options Market Making firm, or (ii) an Appointed MM of
such OFP.
---------------------------------------------------------------------------
The Exchange proposes to decrease the required volume in Initiating
Complex CUBE Orders from 15,000 to 10,000 ADV, which, as discussed
above, would align the qualifying bases for the Credit with the
proposed requirements for the Rebate. While the Exchange is not
proposing any changes to the qualifying requirements with respect to
Customer or Professional Electronic executions or to the amount of the
Credit, which will remain $0.10 per contract, the Exchange proposes to
modify the Fee Schedule to clarify the Professional Electronic volume
requirement. Specifically, the Exchange proposes to specify that
qualifying Professional Electronic volume, like Customer Electronic
qualifying volume, excludes CUBE Auctions, QCC Transactions, and volume
from orders routed to another exchange. The Exchange proposes this
change to improve the clarity of the Fee Schedule by providing
additional detail regarding how qualifying volume for the Credit is
currently determined.
* * * * *
The proposed changes are designed to incent ATP Holders to direct
order flow to the Exchange and to encourage ATP Holders to engage in a
variety of transactions on the Exchange. In particular, the Exchange
notes that volume executed in auctions has increased across the
industry and thus believes the proposed change would
[[Page 6641]]
encourage ATP Holders to direct more auction-eligible order flow (and,
in particular, Initiating CUBE Orders in Complex CUBE auctions) to the
Exchange to qualify for the Rebate and Credit.\13\ To the extent that
the proposed changes to the Rebate and Credit achieve their intended
purpose, the increased liquidity on the Exchange would result in
enhanced market quality for all participants.
---------------------------------------------------------------------------
\13\ The Exchange's analysis of OPRA data indicates that auction
volume has fluctuated from 19.2% of all options industry volume at
the end of 2019, to as high as 23.4% in June 2020, to a current
level of 19.7% in November 2021.
---------------------------------------------------------------------------
The Exchange's fees are constrained by intermarket competition, as
ATP Holders may direct their order flow to any of the 16 options
exchanges, including one with an incentive program similar to the
Rebate and Credit.\14\ Thus, ATP Holders have a choice of where they
direct their order flow. The proposed modifications to the
qualifications for the Rebate and Credit are designed to encourage the
submission of Complex CUBE Orders, which should maximize price
improvement opportunities. In addition, because both the Rebate and
Credit will also have requirements based on Customer Electronic
executions and Professional Electronic order flow, as modified, the
Exchange believes all market participants stand to benefit from
increased order flow, which promotes market depth, facilitates tighter
spreads, and enhances price discovery.
---------------------------------------------------------------------------
\14\ See, e.g., Cboe Exchange Inc. Fee Schedule, Volume
Incentive Program, available at: <a href="https://cdn.cboe.com/resources/membership/Cboe_FeeSchedule.pdf">https://cdn.cboe.com/resources/membership/Cboe_FeeSchedule.pdf</a> (providing comparable per contract
credits for Customer orders based on volume from a variety of
executions, including auction volume, volume from various account
types, and volume from both simple and complex executions).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\15\ in general, and furthers the
objectives of Sections 6(b)(4) and (5) of the Act,\16\ 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.
---------------------------------------------------------------------------
\15\ 15 U.S.C. 78f(b).
\16\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
The Proposed Rule Change Is Reasonable
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.'' \17\
---------------------------------------------------------------------------
\17\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005) (S7-10-04) (``Reg NMS
Adopting Release'').
---------------------------------------------------------------------------
There are currently 16 registered options exchanges competing for
order flow. Based on publicly-available information, and excluding
index-based options, no single exchange has more than 16% of the market
share of executed volume of multiply-listed equity and ETF options
trades.\18\ Therefore, currently no exchange possesses significant
pricing power in the execution of multiply-listed equity and ETF
options order flow. More specifically, in November 2021, the Exchange
had less than 8% market share of executed volume of multiply-listed
equity and ETF options trades.\19\
---------------------------------------------------------------------------
\18\ The OCC publishes options and futures volume in a variety
of formats, including daily and monthly volume by exchange,
available here: <a href="https://www.theocc.com/Market-Data/Market-Data-Reports/Volume-and-Open-Interest/Monthly-Weekly-Volume-Statistics">https://www.theocc.com/Market-Data/Market-Data-Reports/Volume-and-Open-Interest/Monthly-Weekly-Volume-Statistics</a>.
\19\ Based on a compilation of OCC data for monthly volume of
equity-based options and monthly volume of ETF-based options, see
id., the Exchange's market share in multiply listed equity and ETF
options decreased from 9.09% for the month of November 2020 to 7.06%
for the month of November 2021.
---------------------------------------------------------------------------
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 or reduce use of certain categories of
products, in response to fee changes. Accordingly, competitive forces
constrain options exchange transaction fees. Stated otherwise, changes
to exchange transaction fees and rebates can have a direct effect on
the ability of an exchange to compete for order flow.
The proposed rule change is designed to continue to incent ATP
Holders to direct liquidity to the Exchange in a variety of forms and
from a variety of sources, thereby promoting market depth, price
discovery, and price improvement and enhancing order execution
opportunities for market participants. In particular, the Exchange
believes it is reasonable to provide ATP Holders with a rebate or
credit for achieving certain volume goals in different types of
executions, consistent with credits offered through a similarly
structured program on a competing options exchange.\20\ The Exchange
also believes that the proposed exclusions applicable to qualifying
volume for the Rebate are reasonable because they are consistent with
exclusions set forth elsewhere in the Fee Schedule, based on CUBE
Auctions, QCC trades, and volume from orders routed to another exchange
being subject to separate fees and credits.\21\
---------------------------------------------------------------------------
\20\ See supra note 14.
\21\ See supra notes 10 & 11.
---------------------------------------------------------------------------
The Exchange also believes that the proposed modifications to the
qualifications for the Rebate and the Credit are reasonably designed
because they would encourage ATP Holders to execute a variety of orders
on the Exchange and, in particular, make greater use of Complex CUBE
Auctions. The Exchange further believes that implementing the same
criteria to qualify for the Rebate or Credit should encourage greater
use of the Exchange by all ATP Holders, which may lead to greater
opportunities to trade--and for price improvement--for all
participants. The Exchange notes that all market participants stand to
benefit from increased transaction volume, as such increase promotes
market depth, facilitates tighter spreads and enhances price discovery,
and may lead to a corresponding increase in order flow from other
market participants.
The Exchange believes that the proposed modification of the Fee
Schedule regarding qualifying Professional Electronic volume for the
Credit is reasonable because it will provide additional clarity
regarding the current method of calculating qualifying volume for the
Credit.
The Exchange cannot predict with certainty whether any ATP Holders
would seek to qualify for the Rebate or the Credit, as modified, but
believes that the proposed qualifying bases for the Rebate and Credit,
which lower the volume of CUBE Orders necessary to qualify and align
the volume requirements in Customer and Professional Electronic
executions across the two incentives, are achievable for ATP Holders
and would continue to incent ATP Holders to direct volume to the
Exchange.
Finally, to the extent the proposed changes attract greater volume
and liquidity, the Exchange believes the proposed changes would improve
the Exchange's overall competitiveness and strengthen its market
quality for all market participants. In the backdrop of the competitive
environment in which the Exchange operates, the proposed rule changes
are a reasonable attempt by
[[Page 6642]]
the Exchange to increase the depth of its market and improve its market
share relative to its competitors.
The Proposed Rule Change Is an Equitable Allocation of Fees and Rebates
The Exchange believes the proposed rule change is an equitable
allocation of its fees and rebates. The proposal is based on the amount
and type of business transacted on the Exchange, and ATP Holders can
seek to qualify for these incentives or not. The Exchange further
believes that the proposed exclusion of CUBE Auctions, QCC trades, and
volume routed to another exchange from the qualifying Customer
Electronic and Professional Electronic volume for the Rebate is
equitable because volume from such transactions is subject to separate
pricing.\22\ Moreover, because ATP Holders would need to meet
requirements based on Initiating CUBE Orders, Customer Electronic
executions, and Professional Electronic executions in order to qualify
for either the Rebate or Credit, as modified, the Exchange believes
that the proposed changes are designed to encourage ATP Holders to
aggregate their executions at the Exchange as a primary execution
venue. To the extent that the proposed changes attract more volume to
the Exchange (and, in particular, more Complex CUBE auction volume),
this increased order flow would continue to make the Exchange a more
competitive venue for order execution. Thus, the Exchange believes the
proposed rule changes would improve market quality for all market
participants on the Exchange and, as a consequence, attract more order
flow to the Exchange thereby improving market-wide quality and price
discovery.
---------------------------------------------------------------------------
\22\ See supra note 11.
---------------------------------------------------------------------------
The Exchange also believes that the proposed change to specify that
CUBE Auctions, QCC trades, and volume routed to another exchange are
excluded from the calculation of qualifying Professional Electronic
volume for the Credit is an equitable allocation of fees and rebates
because the proposed exclusion is consistent with exclusions set forth
elsewhere in the Fee Schedule and such transactions are subject to
separate pricing.\23\ The Exchange also believes that the proposed
change promotes an equitable allocation of fees and rebates by ensuring
that the Fee Schedule reflects the current method of calculating
qualifying volume for the Credit.
---------------------------------------------------------------------------
\23\ See supra notes 10 & 11.
---------------------------------------------------------------------------
The Proposed Rule Change Is not Unfairly Discriminatory
The Exchange believes that the proposal is not unfairly
discriminatory because the proposed modifications would apply to all
similarly-situated market participants on an equal and non-
discriminatory basis. The proposed changes are based on the amount and
type of business transacted on the Exchange, and ATP Holders are not
obligated to try to achieve either incentive. Rather, the proposals are
designed to encourage participants to utilize the Exchange as a primary
trading venue (if they have not done so previously) and increase
auction, Customer Electronic, and Professional Electronic volume sent
to the Exchange. In addition, the proposed modifications to the
requirements to qualify for the Rebate and Credit are designed to align
the requirements for the two incentives and to encourage greater use of
Complex CUBE Auctions by ATP Holders, which may lead to greater
opportunities to trade--and for price improvement--for all
participants. The Exchange believes that the proposed exclusions from
qualifying volume for the Rebate are not unfairly discriminatory
because they are consistent with exclusions set forth elsewhere in the
Fee Schedule and account for CUBE Auctions, QCC trades, and volume
routed to another exchange being subject to separate pricing.\24\
---------------------------------------------------------------------------
\24\ See supra notes 10 & 11.
---------------------------------------------------------------------------
To the extent that the proposed changes attract more executions to
the Exchange, this increased order flow would continue to make the
Exchange a more competitive venue for order execution. Thus, the
Exchange believes the proposed rule changes would improve market
quality for all market participants on the Exchange and, as a
consequence, attract more order flow to the Exchange thereby improving
market-wide quality and price discovery. The resulting increased volume
and liquidity would provide more trading opportunities and tighter
spreads to all market participants and thus would promote just and
equitable principles of trade, remove impediments to and perfect the
mechanism of a free and open market and a national market system and,
in general, to protect investors and the public interest.
The Exchange further believes that the proposed change to specify
that CUBE Auctions, QCC trades, and volume routed to another exchange
are excluded from the calculation of qualifying Professional Electronic
volume for the Credit is not unfairly discriminatory because it would
update the Fee Schedule to provide additional clarity regarding the
current method of calculating qualifying volume for the Credit.
Finally, 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, 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, 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 all market participants. As a result, the Exchange believes that
the proposed changes further 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.'' \25\
---------------------------------------------------------------------------
\25\ See Reg NMS Adopting Release, supra note 17, at 37499.
---------------------------------------------------------------------------
Intramarket Competition. The proposed change is designed to
continue to attract increased and diverse order flow to the Exchange by
offering competitive credits and rebates, which would enhance the
quality of quoting and may increase the volume of contracts traded on
the Exchange. Specifically, the Exchange believes the proposed rule
change, by specifying requirements in auction, Customer Electronic, and
Professional Electronic volume, would incent ATP Holders to participate
in a variety of types of executions on the Exchange to qualify for the
Rebate or Credit. To the extent that this purpose is achieved, all of
the Exchange's market participants should benefit from the improved
market liquidity. Enhanced market quality and increased transaction
volume resulting from the anticipated increase in order flow directed
to the Exchange would benefit all market participants and improve
competition on the Exchange.
Intermarket Competition. The Exchange operates in a highly
competitive market in which market participants can readily favor one
of the
[[Page 6643]]
16 competing option exchanges if they deem fee levels at a particular
venue to be excessive. In such an environment, the Exchange must
continually adjust its fees to remain competitive with other exchanges
and to attract order flow to the Exchange. Based on publicly-available
information, and excluding index-based options, no single exchange
currently has more than 16% of the market share of executed volume of
multiply-listed equity and ETF options trades.\26\ Therefore, no
exchange currently possesses significant pricing power in the execution
of multiply-listed equity and ETF options order flow. More
specifically, in November 2021, the Exchange had less than 8% market
share of executed volume of multiply-listed equity and ETF options
trades.\27\
---------------------------------------------------------------------------
\26\ See supra note 18.
\27\ Based on a compilation of OCC data for monthly volume of
equity-based options and monthly volume of ETF-based options, see
id., the Exchange's market share in multiply listed equity and ETF
options decreased from 9.09% for the month of November 2020 to 7.06%
for the month of November 2021.
---------------------------------------------------------------------------
The Exchange believes that the proposed rule change reflects this
competitive environment because it modifies the Exchange's fees and
rebates in a manner designed to encourage ATP Holders to direct trading
interest to the Exchange, to provide liquidity and to attract order
flow. Specifically, the Exchange believes that the proposed change
would encourage ATP Holders to direct increased volume to the Exchange,
thereby increasing the number of executions (and executions of varying
types) on the Exchange. The Exchange further believes that harmonizing
the requirements for the Rebate and Credit could make the incentives
more achievable for ATP Holders and would thus continue to make the
Exchange a more attractive and competitive venue for order execution.
To the extent that this purpose is achieved, all the Exchange's market
participants should benefit from the improved market quality and
increased opportunities for price improvement.
Thus, the Exchange believes that the proposed changes could promote
competition between the Exchange and other execution venues, including
those that currently offer similar pricing incentives, 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) \28\ of the Act and subparagraph (f)(2) of Rule
19b-4 \29\ thereunder. 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.
---------------------------------------------------------------------------
\28\ 15 U.S.C. 78s(b)(3)(A).
\29\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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#cfbdbaa3aae2aca0a2a2aaa1bbbc8fbcaaace1a8a0b9"><span class="__cf_email__" data-cfemail="b8cacdd4dd95dbd7d5d5ddd6cccbf8cbdddb96dfd7ce">[email protected]</span></a>. Please include
File Number SR-NYSEAMER-2022-09 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-NYSEAMER-2022-09. 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-NYSEAMER-2022-09 and should be submitted
on or before February 25, 2022.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\30\
---------------------------------------------------------------------------
\30\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-02314 Filed 2-3-22; 8:45 am]
BILLING CODE 8011-01-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on February 4, 2022.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.