Notice2023-09085
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
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Published
May 1, 2023
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 88 Issue 83 (Monday, May 1, 2023)</title>
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[Federal Register Volume 88, Number 83 (Monday, May 1, 2023)]
[Notices]
[Pages 26619-26621]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-09085]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-97373; File No. SR-NYSEARCA-2023-32]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Modify the NYSE
ARCA Options Fee Schedule
April 25, 2023.
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 April 18, 2023, 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 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.
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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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[[Page 26620]]
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'') regarding fees for equipment for the Trading Floor.
The Exchange proposes to implement the fee change effective April 18,
2023.\4\ 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.
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\4\ The Exchange originally filed to amend the Fee Schedule on
April 6, 2023 (SR-NYSEARCA-2023-21) and withdrew such filing on
April 18, 2023.
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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 modify the Fee Schedule regarding
Market Maker podium fees to reflect the availability of new equipment
for Market Makers' use on the Trading Floor. The Exchange proposes to
implement the rule change on April 18, 2023.
Currently, the Exchange equips each Market Maker podium with four
23'' monitors. Market Makers may request up to two additional monitors
per podium for a monthly surcharge of $100. In addition, Market Makers
currently have the option to upgrade the 23'' monitors provided by the
Exchange to 25'' or 27'' monitors for a one-time surcharge of $200 or
$300 per monitor, respectively.\5\
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\5\ See Fee Schedule, NYSE Arca OPTIONS: FLOOR and EQUIPMENT,
MARKET MAKER PODIUM FEES. The Fee Schedule also provides that podia
are only available to Market Makers with an active OTP (i.e., Market
Makers that have only a Reserve OTP are ineligible for podia). In
addition, each Market Maker on the Trading Floor may have no more
than four (4) total podia and, each Market Maker in a given Trading
Crowd, may have not more than two (2) podia, or eight (8) monitors.
Id. The Exchange does not propose any changes to these aspects of
Market Maker podium fees.
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The Exchange now proposes to offer Market Makers an additional
podium monitor upgrade option. Specifically, the Exchange proposes to
modify the Fee Schedule to provide that Market Makers may upgrade their
podium monitors to a 32'' size for a one-time surcharge of $600 per
monitor. This proposed change would offer Market Makers the option to
upgrade their podium monitors to a newly available larger size, which
the Exchange believes would afford Market Makers additional flexibility
in the configuration of their podia space. The Exchange notes that it
established the current fees relating to Market Maker monitors in
connection with the relocation of the Trading Floor to a new
facility.\6\ The proposed change would support fair and efficient use
of Trading Floor space, as the Exchange believes that the available
space on the Trading Floor can accommodate an additional monitor
upgrade option for Market Makers.
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\6\ See Securities Exchange Act Release No. 84874 (December 19,
2018), 83 FR 66818 (December 27, 2018) (SR-NYSEArca-2018-90) (Notice
of Filing and Immediate Effectiveness of Proposed Rule Change To
Modify the NYSE Arca Options Fee Schedule in Conjunction with
Relocating the Trading Floor to a New Trading Facility).
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The Exchange also proposes to amend the Fee Schedule to eliminate
the current descriptions of the monitor sizes as ``standard,''
``large,'' or ``extra-large'' and instead state the sizes of the
available monitors (e.g., 23'', 25'', and so forth). The Exchange
believes this proposed change would add specificity and transparency to
the Fee Schedule with respect to the sizes of the monitors available to
Market Makers.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act, in general, and furthers the objectives
of Sections 6(b)(4) and (5) of the Act, 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 believes the proposed change is reasonable, equitable
and not unfairly discriminatory for the following reasons. First, the
proposed fee for the 32'' monitor upgrade is reasonable, as the
Exchange believes it is relatively proportional to the current fees for
upgrades to monitors of smaller sizes and would support the existing
cost structure designed to provide Market Makers with flexibility in
configuring their Floor space consistent with their own business needs
(i.e., the cost structure will continue to allow a Market Maker to
utilize only one podium with additional and/or upgraded monitors to
facilitate additional personnel operating in the podium, as opposed to
paying for multiple podia). Second, the proposed change is equitable
because it would provide for the same fee for all Market Makers that
wish to exercise the option to upgrade their podium monitors to the
newly available 32'' size. Market Makers are not required to upgrade
their podium equipment, but all those that choose to do so will be
subject to the same fees. The Exchange also notes that the proposed fee
for the newly available 32'' monitor would not impact any of the
existing podium fees. Finally, the Exchange believes the proposed
change is not unfairly discriminatory because it would apply to all
Market Makers on an equal and non-discriminatory basis. Any Market
Maker can choose to upgrade its podium monitors as suits its business
needs, and the same surcharge, based on the size of the upgraded
monitor, would apply to any such Market Maker. The Exchange further
believes that the proposed change to replace the monitor size
descriptors with the monitors' dimensions is reasonable, equitable, and
not unfairly discriminatory because the change would add specificity
and transparency to the Fee Schedule and would apply equally to all
similarly situated market participants.
The Exchange also believes the proposed Floor Fees are reasonable,
equitable, and not unfairly discriminatory because OTP Holders can
choose whether to participate on the Exchange solely through electronic
means, or with a presence on the Trading Floor. The proposed change,
which would offer Market Makers added flexibility with respect to the
configuration of their podium monitors, is designed to continue to
encourage market participants to conduct business on the Trading Floor.
Orders brought to the Trading Floor could benefit all market
participants by facilitating more trading opportunities.
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. The proposed change does not raise any competitive
issues, as it is designed to
[[Page 26621]]
reflect the availability of optional new equipment for Market Maker use
on the Exchange Trading Floor. Market Makers already have the option to
upgrade their podium monitors from those provided by the Exchange to a
larger size, and the proposed change would simply offer Market Makers
an additional upgrade option that would, like the current upgrade
options, be subject to a one-time surcharge. The Exchange believes the
proposed change would afford Market Makers greater flexibility with
respect to the configuration of their podia and could allow them to
make more efficient use of their Trading Floor space.
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) \7\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \8\ thereunder, because it establishes a due, fee, or other charge
imposed by the Exchange.
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\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 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) \9\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\9\ 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="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#a3d1d6cfc68ec0cccecec6cdd7d0e3d0c6c08dc4ccd5"><span class="__cf_email__" data-cfemail="f183849d94dc929e9c9c949f8582b1829492df969e87">[email protected]</span></a>. Please include
File Number SR-NYSEARCA-2023-32 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-2023-32. 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="https://www.sec.gov/rules/sro.shtml">https://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. Do
not include personal identifiable information in submissions; you
should submit only information that you wish to make available
publicly. We may redact in part or withhold entirely from publication
submitted material that is obscene or subject to copyright protection.
All submissions should refer to File Number SR-NYSEARCA-2023-32,
and should be submitted on or before May 22, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-09085 Filed 4-28-23; 8:45 am]
BILLING CODE 8011-01-P
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