
[Federal Register Volume 79, Number 174 (Tuesday, September 9, 2014)]
[Notices]
[Pages 53488-53490]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-21389]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-72971; File No. SR-NYSEARCA-2014-92]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Amending the NYSE 
Arca Options Fee Schedule and, Through Its Wholly Owned Subsidiary NYSE 
Arca Equities, Inc. Amending the NYSE Arca Equities Schedule of Fees 
and Charges for Exchange Services, To Establish a Billing Practice With 
Respect to Billing Disputes

September 3, 2014.
    Pursuant to Section 19(b)(1)\1\ of the Securities Exchange Act of 
1934 (the ``Act'')\2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that, on August 28, 2014, NYSE Arca, Inc. (the ``Exchange'' or 
``NYSE Arca'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I, II, 
and III below, which Items have been prepared by the self-regulatory 
organization. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \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 Arca Options Fee Schedule 
(``Options Fee Schedule'') and, through its wholly owned subsidiary 
NYSE Arca Equities, Inc. (``NYSE Arca Equities''), to amend the NYSE 
Arca Equities Schedule of Fees and Charges for Exchange Services 
(``Equities Fee Schedule'' and, together with the Options Fee Schedule, 
``Fee Schedules''), to establish a billing practice with respect to 
billing disputes. The text of the proposed rule change is available on 
the Exchange's Web site at www.nyse.com, 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 the Fee Schedules to establish a 
billing practice to prevent members \4\ from contesting their bills 
long after they have been sent an invoice. In accordance with the 
proposed rule change, members must submit all disputes no later than 
sixty calendar days after receipt of an Exchange invoice. After sixty 
calendar days, all fees assessed by the Exchange will be considered 
final. The Exchange provides members with both daily and monthly fee 
reports and thus believes members should be aware of any potential 
billing errors within sixty calendar days of receiving an invoice. 
Requiring that members dispute an invoice within this time period will 
encourage them to review their invoices promptly so that any disputed 
charges can be addressed in a timely manner while the information and 
data underlying those charges (e.g., applicable fees and order 
information) is still easily and readily available. This practice will 
avoid issues that may arise when members do not dispute an invoice in a 
timely manner, and will conserve Exchange resources that would have to 
be expended to resolve untimely billing disputes. The Exchange notes 
that this type of provision is common among many other exchanges.\5\
---------------------------------------------------------------------------

    \4\ For the purposes of this filing, for NYSE Arca Equities, the 
term ``members'' refers to ``ETP Holders'' as defined in NYSE Arca 
Equities Rule 1.1(n), and for NYSE Arca, the term ``members'' refers 
to ``OTP Holders'' and ``OTP Firms'' as defined in NYSE Arca Rules 
1.1(q) and 1.1(r).
    \5\ See Securities Exchange Act Release No. 72410 (June 17, 
2014), 79 FR 35605 (June 23, 2014) (SR-MIAX-2014-27); Securities 
Exchange Act Release No. 71286 [sic] (January 14, 2014), 79 FR 3442 
(January 21, 2014) (SR-ISE-2014-02); Securities Exchange Act Release 
No. 62661 (August 6, 2010), 75 FR 49544 (August 13, 2010) (SR-Phlx-
2010-110).
---------------------------------------------------------------------------

    The Exchange also proposes to state that all billing disputes must 
be submitted to the Exchange in writing,\6\ and must be accompanied by 
supporting documentation. The Exchange believes that this requirement, 
which is also similar to requirements of other

[[Page 53489]]

exchanges,\7\ will further streamline the billing dispute process.
---------------------------------------------------------------------------

    \6\ The Exchange invoice specifies contact information for 
billing inquiries.
    \7\ See supra note 5.
---------------------------------------------------------------------------

    In addition, in order for members to be fully aware of this rule 
regarding fee disputes, the Exchange proposes to include it on the Fee 
Schedules and at the bottom of each invoice regarding the handling of 
billing disputes.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\8\ in general, and furthers the 
objectives of Sections 6(b)(4) and (5) of the Act,\9\ in particular, 
because it is designed to promote just and equitable principles of 
trade, to 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.
---------------------------------------------------------------------------

    \8\ 15 U.S. C. 78f(b).
    \9\ 15 U.S. C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

    The Exchange believes the requirement to submit all billing 
disputes in writing, and with supporting documentation, within sixty 
calendar days from receipt of the invoice, is reasonable in the public 
interest because the Exchange provides ample tools to properly and 
swiftly monitor and account for various charges incurred in a given 
month. Also, the proposal is equitable because it applies equally to 
all members. The proposed provision regarding fee disputes in the Fee 
Schedules promotes the protection of investors and the public interest 
by providing a clear and concise mechanism in Exchange Rules for 
members to dispute fees and for the Exchange to review such disputes in 
a timely manner. In addition, the proposed 60-day limitation is fair 
and equitable because it will be implemented prospectively on all 
members, only applying to invoices issued after the proposed rule 
change becomes operative. Moreover, the proposed billing dispute 
language, which will lower the Exchange's administrative burden, is 
substantially similar to billing dispute language adopted by other 
exchanges.\10\
---------------------------------------------------------------------------

    \10\ See supra note 4.
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    In accordance with Section 6(b)(8) of the Act,\11\ the Exchange 
does not believe that the proposed rule change will impose any burden 
on intermarket or intramarket competition that is not necessary or 
appropriate in furtherance of the purposes of the Act. As stated above, 
the proposed rule change, which applies equally to all members, is 
intended to reduce the Exchange's administrative burden, and is 
substantially similar to rules adopted by other exchanges. Because the 
Exchange does not propose any substantive changes regarding fees 
applicable to members, the proposal does not impose any burden on 
competition.
---------------------------------------------------------------------------

    \11\ 15 U.S. C. 78f(b)(8).
---------------------------------------------------------------------------

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 Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \12\ and Rule 19b-4(f)(6) thereunder.\13\ 
Because the proposed rule change does not: (i) significantly affect the 
protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become operative prior to 
30 days from the date on which it was filed, or such shorter time as 
the Commission may designate, if consistent with the protection of 
investors and the public interest, the proposed rule change has become 
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
---------------------------------------------------------------------------

    \12\ 15 U.S. C. 78s(b)(3)(A)(iii).
    \13\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \14\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\15\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest.
---------------------------------------------------------------------------

    \14\ 17 CFR 240.19b-4(f)(6).
    \15\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

    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) \16\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
---------------------------------------------------------------------------

    \16\ 15 U.S. C. 78s(b)(2)(B).
---------------------------------------------------------------------------

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

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-NYSEARCA-2014-92 on the subject line.

Paper Comments

     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-2014-92. 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 Web site (http://www.sec.gov/rules/sro.shtml). 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 Web site 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 such filing also will be available 
for inspection and copying at the principal offices of the Exchange. 
All comments received will be posted without change; the Commission 
does not edit personal identifying information from submissions. You 
should submit only information that you wish to make available 
publicly. All submissions should refer to File Number SR-NYSEARCA-2014-
92, and should be submitted on or before September 30, 2014.


[[Page 53490]]


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
---------------------------------------------------------------------------

    \17\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O' Neill,
Deputy Secretary.
[FR Doc. 2014-21389 Filed 9-8-14; 8:45 am]
BILLING CODE 8011-01-P


