Notice2024-15504
Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule 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
July 16, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 136 (Tuesday, July 16, 2024)</title>
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[Federal Register Volume 89, Number 136 (Tuesday, July 16, 2024)]
[Notices]
[Pages 57950-57951]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-15504]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-100490; File No. SR-NYSEAMER-2024-43]
Self-Regulatory Organizations; NYSE American LLC; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
the NYSE American Options Fee Schedule
July 10, 2024.
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 July 1, 2024, 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 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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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 the American Customer Engagement
(``ACE'') Program. The Exchange proposes to implement the fee change
effective July 1, 2024. 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 modify Section I.E. of the Fee
Schedule regarding the ACE Program. Specifically, the Exchange proposes
to clarify the operation of the Program as relates to Customer volume
executed via the BOLD Mechanism (``BOLD volume'') and to make other
minor technical changes as described herein.\4\ This proposal would not
alter how the ACE Program operates (or the credits applied on eligible
BOLD volume) and is instead designed to clarify a potential ambiguity
in the Fee Schedule.
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\4\ See Rule 994NY (describing the operation of the Broadcast
Order Liquidity Delivery (``BOLD'') Mechanism).
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The ACE Programs, as described in Section I.E., offers Order Flow
Providers (OFP) \5\ per contract credits based on, and applied to,
certain Electronic Customer volume executed on the Exchange.\6\ The ACE
Program has five tiers and offers increasing per contract credits to an
OFP that meets or exceeds increasing volume thresholds. Regarding BOLD
volume, Section I.E. provides that ``[t]he per contract credits in the
table below apply to Electronic options transactions, including those
executed via the BOLD Mechanism'' and that such volume ``will be
included in an OFP's Electronic volume calculation for purposes of the
ACE Program.''[sic]\7\
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\5\ An OFP is an Order Flow provider means ``any ATP Holder that
submits, as agent, orders to the Exchange.'' See Rule 900.2NY.
\6\ See Fee Schedule, Section I.E. (American Customer Engagement
(``ACE'') Program).
\7\ Id.
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Section I.M. of the Fee Schedule describes the fees and credits
applied to BOLD volume.\8\ Specifically, the Exchange offers per
contract credits on each ``BOLD Initiating Order'' executed on behalf
of Customers that are the ``[b]etter of ($0.12) or, if eligible for a
higher credit via the ACE Program, per Section I.E., ($0.13).'' \9\
Thus, although not specified in Section I.E., an OFP's potential per
contract credit on eligible BOLD volume is capped at ($0.13)
[[Page 57951]]
regardless of what ACE Program tier an OFP achieves.
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\8\ See Fee Schedule, Section I.M. (BOLD Mechanism Fees &
Credits).
\9\ See id. A ``BOLD Initiating Order'' is ``an order submitted
to be executed via the BOLD Mechanism.'' See Fee Schedule, KEY TERMS
and DEFINITIONS.
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To address this potential ambiguity, the Exchange proposes to amend
Section I.E. as relates to BOLD volume. First, the Exchange proposes to
reorganize current rule text to make clear that, like volume executed
via the Customer Best Execution (``CUBE'') Auction, Customer volume
``executed via the BOLD Mechanism'' will be ``included in an OFP's
Electronic volume calculation for purposes of the ACE Program tiers.''
\10\ Second, the Exchange proposes to modify the first sentence of
Section I.E., regarding the application of ACE Program credits, to
remove reference to BOLD volume.\11\ Instead, the Exchange proposes to
add a cross-reference to Section I.M., which specifies the per contract
credits available for eligible BOLD volume.\12\ Finally, the Exchange
proposes a technical change to clarify that ACE Program credits are not
``payable'' or ``paid'' to OFPs but are instead ``available'' to OFPs
and are ``applied'' to an OFPs fees, if earned.\13\
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\10\ See proposed Fee Schedule, Section I.E. (American Customer
Engagement (``ACE'') Program). The Exchange proposes to make clear
that, for purposes of determining whether an OFP qualifies for any
of the ``ACE Program tiers``, the Exchange includes Customer volume
resulting from CUBE Auctions and executions via the BOLD Mechanism.
See id. (emphasis added).
\11\ See id. (``The per contract credits in the table below
apply to Electronic options transactions.'').
\12\ See id. The Exchange also proposes minor technical changes
to specify that credits applicable to certain CUBE Auction volume
are ``as set forth in Section I.G.'' (emphasis added).
\13\ See id. (specifying, for example, that the ACE Program
credits are ``available'' to OFPs; and ``applied solely to Customer
volume''; and ``applied'' based on an OFP's eligible Customer
volume).
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\14\ in general, and furthers the
objectives of Sections 6(b)(4) and (5) of the Act,\15\ 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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\14\ 15 U.S.C. 78f(b).
\15\ 15 U.S.C. 78f(b)(4) and (5).
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The Exchange believes the proposed change to specify the per
contract credit available on eligible BOLD volume is reasonable,
equitable and not unfairly discriminatory because the change would add
clarity, transparency, and internal consistency, to the Fee Schedule.
Likewise, the proposed technical change would add clarity and
transparency to the Fee Schedule. Taken together, the proposed changes
would benefit investors because such changes should improve the
accuracy and comprehensibility of the Fee Schedule.
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. This proposal is not a competitive change.
Instead, the changes proposed herein would add clarity, transparency,
and internal consistency to the Fee Schedule thereby improving its
accuracy and comprehensibility to the benefit of investors.
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) \16\ of the Act and subparagraph (f)(2) of Rule
19b-4 \17\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
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\16\ 15 U.S.C. 78s(b)(3)(A).
\17\ 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) \18\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\18\ 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#1f6d6a737a327c7072727a716b6c5f6c7a7c31787069"><span class="__cf_email__" data-cfemail="fe8c8b929bd39d9193939b908a8dbe8d9b9dd0999188">[email protected]</span></a>. Please include
file number SR-NYSEAMER-2024-43 on the subject line.
Paper Comments
<bullet> Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to file number SR-NYSEAMER-2024-43. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (<a href="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
a.m. and 3 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 copyrightprotection. All
submissions should refer to file number SR-NYSEAMER-2024-43 and should
be submitted on or before August 6, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
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\19\ 17 CFR 200.30-3(a)(12).
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Vanessa A. Countryman,
Secretary.
[FR Doc. 2024-15504 Filed 7-15-24; 8:45 am]
BILLING CODE 8011-01-P
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