[Federal Register Volume 83, Number 119 (Wednesday, June 20, 2018)]
[Notices]
[Pages 28687-28689]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-13166]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83440; File No. SR-NYSENAT-2018-13]


Self-Regulatory Organizations; NYSE National, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its 
Schedule of Fees and Rebates To Extend the Current Waiver of Certain 
Adding and Taking Tier Volume Requirements to July 1, 2018, and Make 
Non-Substantive Changes To Eliminate Obsolete Text

June 14, 2018.
    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 6, 2018, NYSE National, Inc. (the ``Exchange'' or 
``NYSE National'') 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

[[Page 28688]]

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 its Schedule of Fees and Rebates to 
(1) extend the current waiver of certain adding and taking tier volume 
requirements to July 1, 2018, and (2) make non-substantive changes to 
eliminate obsolete text. The Exchange proposes to implement the rule 
change on June 6, 2018.\4\ The proposed rule change is available on the 
Exchange's website at www.nyse.com, 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 
May 31, 2018 (SR-NYSENAT-2018-11) and withdrew such filing on June 
6, 2018. This filing replaces SR-NYSENAT-2018-11 in its entirety.
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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 Exchange proposes to amend its Schedule of Fees and Rebates to 
(1) extend the current waiver of certain adding and taking tier volume 
requirements to July 1, 2018, and (2) make non-substantive changes to 
eliminate obsolete text.
    The Exchange proposes to implement the rule change on June 6, 2018.
Extend Waiver of Adding and Taking Tier Volume Requirements
    Currently, under the Adding Tier, the Exchange charges fees of 
$0.0020 per share for displayed orders, $0.0022 per share for non-
displayed orders, $0.0018 per share for orders that set a new Exchange 
BBO,\5\ and $0.0005 per share for Mid-Point Liquidity (``MPL'') orders 
for transactions in stocks with a per share price of $1.00 or more when 
adding liquidity to the Exchange if the ETP Holder has at least 0.015% 
of Adding ADV as a percent of US CADV. Under the Taking Tier, the 
Exchange offers credits of ($0.0020) per share for orders and ($0.0002) 
per share for MPL orders for transactions in stocks with a per share 
price of $1.00 or more when removing liquidity from the Exchange if the 
ETP Holder has at least 50,000 shares of Adding ADV. As reflected in 
footnote * of the Schedule of Fees and Rebates, the Exchange currently 
waives the volume requirements for both of these tiers until June 1, 
2018.
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    \5\ The term ``BBO'' is defined in Rule 1.1 to mean the best bid 
or offer that is a Protected Quotation on the Exchange. The term 
``BB'' means the best bid that is a Protected Quotation on the 
Exchange and the term ``BO'' means the best offer that is a 
Protected Quotation on the Exchange.
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    The Exchange proposes to extend the waiver of the volume 
requirements for the Adding Tier and Taking Tier until July 1, 2018, 
which would be reflected in footnote * of the Schedule of Fees and 
Rebates.
Deletion of Obsolete Text
    Currently, the Exchange does not [sic] to charge for order/quote 
entry ports and for drop copy ports until June 1, 2018.\6\ Thereafter, 
as the Exchange noted in its filing adopting the port fees, the 
Exchange would charge $250 per port per month for both order/quote 
entry ports and drop copy ports, and the fees would apply to all market 
participants.\7\ Because the fee waivers expire on June 1, 2018, and 
the Exchange does not propose to extend the waivers, the Exchange 
accordingly proposes to eliminate the waiver language in the Section 
III (Port Fees) of the Schedule of Fees and Rebates as obsolete.
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    \6\ Order/quote entry ports provide connectivity to the 
Exchange's trading systems (i.e., ports for entry of orders and/or 
quotes). Drop copy ports allow for the receipt of ``drop copies'' of 
order or transaction information. Firms receive confirmations of 
their orders and receive execution reports via the order/quote entry 
port that is used to enter the order or quote. A ``drop copy'' 
contains redundant information that a firm chooses to have 
``dropped'' to another destination (e.g., to allow the firm's back 
office and/or compliance department, or another firm--typically the 
firm's clearing broker--to have immediate access to the 
information). Drop copies can only be sent via a drop copy port. 
Drop copy ports cannot be used to enter orders and/or quotes.
    \7\ See SR-NYSENAT-2018-12.
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    The proposed changes are not otherwise intended to address any 
other issues, and the Exchange is not aware of any problems that ETP 
Holders would have in complying with the proposed change.
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 6(b)(5) of the Act,\9\ 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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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(4) & (5).
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Extend Waiver of Adding and Taking Tier Volume Requirements
    The Exchange believes it is reasonable to extend the waiver of the 
Adding Tier and Taking Tier volume requirements until July 1, 2018, 
because the continued waiver for a limited period of time will provide 
incentives for ETP Holders to submit increased volumes and enable the 
Exchange to improve its overall competitiveness and strengthen its 
market quality to the benefit of all market participants. The proposed 
extension of the volume requirements waiver is not unfairly 
discriminatory because it will apply equally to all similarly situated 
ETP Holders.
Non-Substantive Changes
    The Exchange believes that the proposed deletion of waiver language 
expiring June 1, 2018, relating to port fees removes impediments to, 
and perfects the mechanism of, a free and open market by adding clarity 
as to whether waivers are operative and when, thereby reducing 
potential confusion that may result from having obsolete material in 
the Exchange's rulebook, and making the Exchange's rules easier to 
navigate. The Exchange believes that eliminating such obsolete material 
would not be inconsistent with the public interest and the protection 
of investors because investors will not be harmed and in fact would 
benefit from increased transparency, thereby reducing potential 
confusion.
    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,\10\ the Exchange 
believes that the proposed rule change would not impose any burden on 
competition that is not necessary or appropriate in furtherance

[[Page 28689]]

of the purposes of the Act. Instead, the Exchange believes that the 
proposed rule change would encourage the submission of additional 
liquidity to a public exchange, thereby promoting price discovery and 
transparency and enhancing order execution opportunities for ETP 
Holders. The Exchange believes that this 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. The Exchange also believes that the proposed rule is 
designed to provide the public and investors with a Schedule of Fees 
and Rebates that is clear and consistent, thereby reducing burdens on 
the marketplace and facilitating investor protection.
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    \10\ 15 U.S.C. 78f(b)(8).
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    Finally, the Exchange notes that it operates in a highly 
competitive market in which market participants can readily favor 
competing venues if they deem fee levels at a particular venue to be 
excessive or rebate opportunities available at other venues to be more 
favorable. In such an environment, the Exchange must continually adjust 
its fees and rebates to remain competitive with other exchanges and 
with alternative trading systems that have been exempted from 
compliance with the statutory standards applicable to exchanges. 
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 believes that the degree to which 
fee changes in this market may impose any burden on competition is 
extremely limited. As a result of all of these considerations, the 
Exchange does not believe that the proposed changes will impair the 
ability of ETP Holders or competing order execution venues to maintain 
their competitive standing in the financial markets.

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) \11\ of the Act and subparagraph (f)(2) of Rule 
19b-4 \12\ thereunder, because it establishes a due, fee, or other 
charge imposed by the Exchange.
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 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) \13\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \13\ 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

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-NYSENAT-2018-13 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE, 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSENAT-2018-13. 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 (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 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; the Commission does not edit 
personal identifying information from submissions. 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-NYSENAT-2018-13 and should 
be submitted on or before July 11, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-13166 Filed 6-19-18; 8:45 am]
 BILLING CODE 8011-01-P


