Notice2022-13273
Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Change To Amend Certain Transaction Fees and Credits in the NYSE American Equities Price List and 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
June 22, 2022
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 87 Issue 119 (Wednesday, June 22, 2022)</title>
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[Federal Register Volume 87, Number 119 (Wednesday, June 22, 2022)]
[Notices]
[Pages 37364-37368]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-13273]
[[Page 37364]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-95106; File No. SR-NYSEAMER-2022-24]
Self-Regulatory Organizations; NYSE American LLC; Notice of
Filing and Immediate Effectiveness of Proposed Change To Amend Certain
Transaction Fees and Credits in the NYSE American Equities Price List
and Fee Schedule
June 15, 2022.
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 June 1, 2022, NYSE American LLC (``NYSE American'' 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 Exchange. 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 certain transaction fees and credits
in the NYSE American Equities Price List and Fee Schedule (``Price
List'') pertaining to its Standard Rates and Retail Order Rates for
transactions in securities at or above $1, as well as its transaction
fees and credits and monthly credits applicable to Electronic
Designated Market Makers (``eDMM'') in assigned securities. The
Exchange proposes to implement the fee changes effective June 1, 2022.
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.
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 certain transaction fees and credits
in its Price List pertaining to its Standard Rates and Retail Order
Rates for transactions in securities at or above $1, as well as its
transaction fees and credits and monthly credits applicable to
Electronic Designated Market Makers (``eDMM'') in assigned securities.
The proposed changes respond to the current competitive environment
where order flow providers have a choice of where to direct liquidity-
providing and liquidity-removing orders by offering further incentives
for ETP Holders to send additional adding and removing liquidity to the
Exchange.
The Exchange proposes to implement the fee changes effective June
1, 2022.
Competitive Environment
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.'' \4\
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\4\ 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.'' \5\ Indeed, cash equity trading is currently dispersed
across 16 exchanges,\6\ numerous alternative trading systems,\7\ 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.\8\ Therefore, no exchange
possesses significant pricing power in the execution of cash equity
order flow. More specifically, the Exchange currently has less than 1%
market share of executed volume of cash equities trading.\9\
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\5\ 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).
\6\ 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>.
\7\ 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>.
\8\ 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>.
\9\ 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 the firm routes order flow. Accordingly, competitive forces
compel the Exchange to use exchange transaction fees and credits
because market participants can readily trade on competing venues if
they deem pricing levels at those other venues to be more favorable.
Proposed Rule Change
The Exchange proposes the following changes to its Price List.
Proposed Increase to Tier 2 Fee for Orders Removing Liquidity
Regarding its Standard Rates in securities at or above $1, the
Exchange proposes to increase the fee for Tier 2 orders removing
liquidity. The current Tier 2 pricing available to ETP Holders with
Adding ADV of at least 700,000 shares includes a fee of $0.0027 per
share for orders removing liquidity from the Exchange. The Exchange
proposes to increase this fee to $0.0028 per share.
The Exchange proposes this change in part because it would be
consistent with the applicable rate on other marketplaces. For
instance, Nasdaq PSX charges a $0.0029 per share fee for removing
liquidity for firms meeting certain requirements; otherwise, its fee
for removing liquidity is $0.0030 per
[[Page 37365]]
share.\10\ The Exchange's proposed fee increase to $0.0028 from $0.0027
for removing liquidity from the Exchange would still be competitive
with respect to Nasdaq PSX.
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\10\ See Nasdaq PSX Pricing at <a href="https://www.nasdaqtrader.com/Trader.aspx?id=PSX_Pricing">https://www.nasdaqtrader.com/Trader.aspx?id=PSX_Pricing</a>.
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As noted, the Exchange operates in a highly competitive
environment. The Exchange does not know how much order flow ETP Holders
choose to route to other exchanges or to off-exchange venues. Without
having a view of ETP Holder's activity on other exchanges and off-
exchange venues, the Exchange has no way of knowing whether this
proposed rule change would have an effect on the number of orders any
ETP Holder will direct to the Exchange.
The Exchange does not propose any other changes to its Standard
Rates in securities at or above $1.
Proposed Increase to Credit for Retail Orders That Add Liquidity
Regarding its Retail Order Rates in securities at or above $1, the
Exchange proposes to increase the credit for orders that add liquidity
to the Exchange to $0.0032 per share, from the current level of $0.0030
per share.
The Exchange proposes this change in part because it would be
consistent with the applicable rate on other marketplaces. For
instance, the base credit for retail orders adding liquidity on Cboe
BZX and Cboe EDGX is $0.0032 per share.\11\ The Exchange's affiliate
NYSE Arca Equities similarly offers a credit of $0.0032 per share for
retail orders adding liquidity.\12\
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\11\ See Cboe BZX Price List at <a href="https://www.cboe.com/us/equities/membership/fee_schedule/bzx/">https://www.cboe.com/us/equities/membership/fee_schedule/bzx/</a> and Cboe EDGX Price List at
<a href="https://www.cboe.com/us/equities/membership/fee_schedule/edgx/">https://www.cboe.com/us/equities/membership/fee_schedule/edgx/</a>.
\12\ See NYSE Arca Equities Price List at <a href="https://www.nyse.com/publicdocs/nyse/markets/nyse-arca/NYSE_Arca_Marketplace_Fees.pdf">https://www.nyse.com/publicdocs/nyse/markets/nyse-arca/NYSE_Arca_Marketplace_Fees.pdf</a>.
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In addition, the proposed change is intended to encourage greater
participation from ETP Holders and to promote additional liquidity in
Retail Orders. The competition for retail order flow between exchanges
and off-exchange venues is fierce, and market participants can readily
trade on competing venues if they deem pricing levels at those other
venues to be more favorable. The Exchange believes that the proposed
increase credit for orders that add liquidity to the Exchange could
lead to more ETP Holders choosing to route their Retail Orders to the
Exchange for execution rather than to a competing exchange.
That said, the Exchange does not know how much Retail Order flow
ETP Holders choose to route to other exchanges or to off-exchange
venues. Without having a view of ETP Holders' activity on other markets
and off-exchange venues, the Exchange has no way of knowing whether
this proposed rule change would result in any ETP Holders sending more
of their Retail Orders to the Exchange. The Exchange cannot predict
with certainty how many ETP Holders would avail themselves of this
opportunity, but additional Retail Orders would benefit all market
participants because it would provide greater execution opportunities
on the Exchange.
The proposed rule change is designed to be available to all ETP
Holders on the Exchange and is intended to provide ETP Holders a
greater incentive to direct more of their Retail Orders to the
Exchange. As is the case currently, the Retail Order Rates would remain
optional for ETP Holders.
The Exchange does not propose any other changes to its Retail Order
Rates.
Proposed Modifications to Optional Monthly Credit per Security for
eDMMs
Regarding the fees and credits applicable to eDMMs on transactions
in assigned securities, the Exchange proposes to modify the eDMM
optional monthly credit per security. Currently, the Exchange offers
eDMMs an optional monthly credit per security (``Credit Per Security'')
up to a maximum credit of $550 per month per assigned security,
provided that eDMMs agree to a credit of $0.0030 per share for orders
adding displayed liquidity instead of the otherwise-applicable credit
of $0.0045 per share.
The Exchange proposes to modify both the available Credit Per
Security levels as well as the credit to which eDMMs must agree to be
eligible for the Credit Per Security. The Exchange proposes that for
eDMMs agreeing to a $0.0020 credit per share for orders adding
displayed liquidity, the Exchange would increase the available Credit
Per Security to $350 (from $250) for an eDMM quoting at the National
Best Bid or Offer (``NBBO'') for a minimum average of 40% of the time,
and would increase the available Credit Per Security to $850 (from
$550) for an eDMM quoting at the NBBO for a minimum average of 50% of
the time.
The proposed changes respond to the current competitive environment
where order flow providers have a choice of where to direct liquidity-
providing orders by offering further incentives for eDMMs to increase
quoting on, and send additional displayed liquidity to, the Exchange.
The Exchange believes that providing Exchange eDMMs with the option to
receive a lower per share transaction credit for increased quoting and
adding displayed liquidity in exchange for new higher monthly rebates
across all eDMM assigned securities would foster liquidity provision
and stability in the marketplace and lessen eDMM reliance on
transaction fees, to the benefit of the marketplace and all market
participants.
The Exchange does not propose any other changes to its rates to
eDMMs on transactions in assigned securities, including any changes to
the rates applicable to eDMMs that do not elect to receive the optional
Credit Per Security.
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,\13\ in general, and furthers the
objectives of Sections 6(b)(4) and (5) of the Act,\14\ 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, is designed to prevent fraudulent and
manipulative acts and practices and to promote just and equitable
principles of trade, and does not unfairly discriminate between
customers, issuers, brokers or dealers.
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\13\ 15 U.S.C. 78f(b).
\14\ 15 U.S.C. 78f(b)(4) and (5).
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The Proposed Fee Change Is Reasonable
As discussed above, the Exchange operates in a highly fragmented
and competitive market. The Commission has repeatedly expressed its
preference for competition over regulatory intervention in determining
prices, products, and services in the securities markets. Specifically,
in Regulation NMS, the Commission highlighted the importance of market
forces in determining prices and SRO revenues and, also, recognized
that current regulation of the market system ``has been remarkably
successful in promoting market competition in its broader forms that
are most important to investors and listed companies.'' \15\
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\15\ See Regulation NMS, supra note 4, 70 FR at 37499.
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The Exchange believes that the ever-shifting market share among the
exchanges from month to month demonstrates that market participants can
shift order flow, or discontinue to reduce use of certain categories of
[[Page 37366]]
products, in response to fee changes. ETP Holders can choose from any
one of the 16 currently operating registered exchanges, and numerous
off-exchange venues, to route such order flow. Accordingly, competitive
forces constrain exchange transaction fees that relate to orders on an
exchange. Stated otherwise, changes to exchange transaction fees can
have a direct effect on the ability of an exchange to compete for order
flow.
Given this competitive environment, the proposal represents a
reasonable attempt to attract additional order flow to the Exchange by
adjusting the incentives for market participants, including eDMMs, to
send additional displayed liquidity to the Exchange.
Proposed Increase to Tier 2 Fee for Orders Removing Liquidity
The Exchange believes that is proposal to increase its Tier 2 fee
for orders removing liquidity from the Exchange is reasonable because
it would be consistent with the applicable rate on other marketplaces.
As noted above, Nasdaq PSX, one of the Exchange's competitors, charges
a fee of $0.0029 per share fee for removing liquidity for firms meeting
certain requirements; otherwise, its fee for removing liquidity is
$0.0030 per share. The Exchange's proposed fee increase to $0.0028 from
$0.0027 for removing liquidity from the Exchange would potentially
increase revenue while still being an advantageous fee when compared to
Nasdaq PSX.
As noted, the Exchange operates in a highly competitive
environment. The Exchange does not know how much order flow ETP Holders
choose to route to other exchanges or to off-exchange venues. Without
having a view of ETP Holder's activity on other exchanges and off-
exchange venues, the Exchange has no way of knowing whether this
proposed rule change would have an effect on the number of orders any
ETP Holder will direct to the Exchange. The Exchange nevertheless
believes that the proposed fee increase is a reasonable attempt to
increase revenue within the fierce competitive environment.
Proposed Increase to Credit for Retail Orders That Add Liquidity
The Exchange believes that the proposed increase to the credit for
Retail Orders that add liquidity to the Exchange is reasonable.
The Exchange operates in a fiercely competitive environment,
particularly with regard to retail orders. As noted above, several of
the Exchange's competitors offer base credits for retail orders adding
liquidity that are higher (i.e., $0.0032 credit per share) than the
Exchange's current credit ($0.0030 credit per share). The Exchange
believes that this proposal to increase its credit for Retail Orders
adding liquidity to the Exchange represents a reasonable attempt to
attract additional Retail Orders to the Exchange, thereby increasing
liquidity on the Exchange and improving the Exchange's market share
relative to its competitors. In addition, the Exchange believes that
attracting higher volumes of Retail Orders to be transacted on the
Exchange by ETP Holders would benefit all market participants by
offering greater price discovery and an increased opportunity to trade
on the Exchange.
Without having a view of ETP Holders' activity on other markets and
off-exchange venues, the Exchange has no way of knowing whether this
proposed rule change would result in any ETP Holder sending more of
their Retail Orders to the Exchange, nor can the Exchange predict with
certainty how many ETP Holders would avail themselves of this
opportunity. Additional Retail Orders on the Exchange would benefit all
market participants because they would provide greater execution
opportunities on the Exchange.
Proposed Modifications to Optional Monthly Credit per Security for
eDMMs
The Exchange believes that the proposed modifications to eDMMs
rates are reasonable. Providing eDMMs with the option to receive a
lower per share transaction credit for adding displayed liquidity in
exchange for higher monthly rebates per assigned liquidity, up to a
maximum credit of $850 per month across all eDMM assigned securities,
is reasonable because it would foster liquidity provision and stability
in the marketplace and lessen eDMM reliance on transaction fees, to the
benefit of the marketplace and all market participants. Moreover, the
proposal is reasonable because it would balance the increased risks and
heightened quoting and other obligations that eDMMs on the Exchange
have and that other market participants do not. The Exchange also
believes that increasing the maximum credit to $850 (from $550) per
month for the Credit Per Security is reasonable and will provide a
further incentive for eDMMs to quote and trade a greater number of
securities on the Exchange and will generally allow the Exchange and
eDMMs to better compete for order flow, and thus enhance competition.
The Proposed Change Is an Equitable Allocation of Fees and Credits
The Exchange believes its proposal equitably allocates its fees
among its market participants by fostering liquidity provision and
stability in the marketplace.
Proposed Increase to Tier 2 Fee for Orders Removing Liquidity
The Exchange believes that is proposal to increase its Tier 2 fee
for orders removing liquidity from the Exchange equitably allocates
fees and credits among market participants because all ETP Holders that
participate on the Exchange may qualify for the proposed fee.
The proposed change also is equitable because it would be
consistent with the applicable rates on other marketplaces. As noted
above, Nasdaq PSX, one of the Exchange's competitors, charges a fee of
$0.0029 per share fee for removing liquidity for firms meeting certain
requirements; otherwise, its fee for removing liquidity is $0.0030 per
share.
Proposed Increase to Credit for Retail Orders That Add Liquidity
The Exchange believes that its proposal to increase the credit
available for Retail Orders that add liquidity to the exchange
equitably allocates its fees among market participants because all ETP
Holders that participate on the Exchange may qualify for the proposed
credit if they elect to send their Retail Orders to the Exchange and
properly designate them as Retail Orders.
The Exchange further believes that the proposed change is equitable
because it is reasonably related to the value to the Exchange's market
quality associated with higher volume in Retail Orders. The Exchange
believes that increasing the credit available for orders designated as
Retail Orders would attract additional order flow and liquidity to the
Exchange, thereby contributing to price discovery on the Exchange and
benefiting investors generally.
The Exchange believes that the proposed rule change is equitable
because maintaining or increasing the proportion of Retail Orders in
exchange-listed securities that are executed on a registered national
securities exchange (rather than relying on certain available off-
exchange execution methods) would contribute to investors' confidence
in the fairness of their transactions and would benefit all investors
by deepening the Exchange's liquidity pool, supporting the quality of
price discovery, promoting market transparency, and improving investor
protection.
[[Page 37367]]
Proposed Modifications to Optional Monthly Credit per Security for
eDMMs
The Exchange believes that it is equitable to offer eDMMs the
option to receive a lower per share transaction credit for adding
displayed liquidity in exchange for monthly rebates per assigned
security because it would balance the increased risks and heightened
quoting and other obligations that eDMMs on the Exchange have and that
other market participants do not have. As such, it is equitable to
offer eDMMs the option to receive a flat per security credit based on
the eDMM's quoting in that symbol, coupled with a lower transaction
fee.
The proposed change is also equitable because it would apply
equally to all eDMM firms, who would have the option to elect (or not
elect) to participate on a monthly basis.
Moreover, the Exchange believes that the proposal is equitable
because eDMMs would be required to meet the prescribed quoting
requirements in order to qualify for the payments, as described above.
All eDMMs would be eligible to elect to receive a Credit Per Security
and could do so by notifying the Exchange and meeting the per symbol
quoting requirement.
The Proposed Fee Change Is Not Unfairly Discriminatory
The Exchange believe that the proposed rule is not unfairly
discriminatory, for the following reasons.
Proposed Increase to Tier 2 Fee for Orders Removing Liquidity
The Exchange believes that is proposal to increase its Tier 2 fee
for orders removing liquidity from the Exchange does not permit unfair
discrimination because the proposed fee would be applied to all
similarly situated ETP Holders and other market participants, who would
all be eligible for the same rates on an equal basis. Accordingly, no
ETP Holder already operating on the Exchange would be disadvantaged by
this allocation of fees and credits.
In addition, the Exchange notes that the submission of orders to
the Exchange is optional for ETP Holders in that they could choose
whether to submit orders to the Exchange and, if they do, they can
choose the extent of their activity in this regard.
Proposed Increase to Credit for Retail Orders That Add Liquidity
The Exchange believes that its proposal to increase the credit for
Retail Orders that add liquidity to the Exchange is not unfairly
discriminatory because it would apply to all ETP Holders on an equal
and non-discriminatory basis, and all similarly-situated ETP Holders
would earn the same credits and pay the same fees for Retail Orders
executed on the Exchange. In addition, the submission of Retail Orders
is optional for ETP Holders in that they could choose whether to submit
Retail Orders to the Exchange and, if they do, they can choose the
extent of their activity in this regard.
The Exchange believes that the proposed change is not unfairly
discriminatory because maintaining or increasing the proportion of
Retail Orders in exchange-listed securities that are executed on a
registered national securities exchange (rather than relying on certain
available off-exchange execution methods) would contribute to
investors' confidence in the fairness of their transactions and would
benefit all investors by deepening the Exchange's liquidity pool,
supporting the quality of price discovery, promoting market
transparency, and improving investor protection.
Proposed Modifications to Optional Monthly Credit per Security for
eDMMs
The Exchange believes it is not unfairly discriminatory to offer
eDMMs the option to receive a flat per security credit coupled with a
lower transaction fee for orders that provide displayed liquidity in
assigned securities as the proposed credits would be provided on an
equal basis to all such participants. The proposed modified Credit Per
Security levels would apply equally to all eDMM firms, who would have
the option to elect (or not elect) to participate on a monthly basis.
Further, the Exchange believes the proposed incremental credits would
incentivize eDMMs that meet the proposed quoting requirements to send
more orders to the Exchange to qualify for a higher Credit Per
Security.
The proposal neither targets nor will it have a disparate impact on
any particular category of market participant. The proposal does not
permit unfair discrimination because the proposed thresholds would be
applied to all similarly situated eDMMs, who would all be eligible for
the same credit on an equal basis. Accordingly, no eDMM already
operating on the Exchange would be disadvantaged by this allocation of
fees.
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,\16\ 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 fee change 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 market participants. As a result, the Exchange
believes that the proposed change furthers the Commission's goal in
adopting Regulation NMS of fostering integrated competition among
orders, which promotes ``more efficient pricing of individual stocks
for all types of orders, large and small.'' \17\
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\16\ 15 U.S.C. 78f(b)(8).
\17\ See Securities Exchange Act Release No. 51808, 70 FR 37495,
37498-99 (June 29, 2005) (S7-10-04) (Final Rule).
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Intramarket Competition. The Exchange believes the proposed change
would not impose any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act. The proposed
change is designed to attract additional orders to the Exchange. The
Exchange believes that the proposed changes would incentivize market
participants to direct their orders to the Exchange. Greater overall
order flow, trading opportunities, and pricing transparency benefit all
market participants on the Exchange by enhancing market quality and
continuing to encourage ETP Holders to send orders, thereby
contributing towards a robust and well-balanced market ecosystem.
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 currently has less than 1% market share of executed
volume of equities trading. In such an environment, the Exchange must
continually adjust its fees and credits 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
[[Page 37368]]
can impose any burden on intermarket competition.
The Exchange believes that the proposed change could promote
competition between the Exchange and other execution venues, including
those that currently offer similar order types and comparable
transaction pricing, by encouraging additional orders to be sent to the
Exchange for execution.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change is effective upon filing pursuant to
Section 19(b)(3)(A) \18\ of the Act and subparagraph (f)(2) of Rule
19b-4 \19\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
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\18\ 15 U.S.C. 78s(b)(3)(A).
\19\ 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) \20\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\20\ 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#b2c0c7ded79fd1dddfdfd7dcc6c1f2c1d7d19cd5ddc4"><span class="__cf_email__" data-cfemail="2755524b420a44484a4a424953546754424409404851">[email protected]</span></a>. Please include
File Number SR-NYSEAMER-2022-24 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-2022-24. 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-2022-24, and should be
submitted on or before July 13, 2022.
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\21\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\21\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-13273 Filed 6-21-22; 8:45 am]
BILLING CODE 8011-01-P
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</html>Indexed from Federal Register on June 22, 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.