[Federal Register Volume 83, Number 204 (Monday, October 22, 2018)]
[Notices]
[Pages 53347-53349]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-22903]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84430; File No. SR-NYSENAT-2018-23]


Self-Regulatory Organizations; NYSE National, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its 
Schedule of Fees To Adopt the Same Billing Dispute Practice as the 
Exchange's Affiliates and Other Exchanges

October 16, 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 October 3, 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 
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 its Schedule of Fees and Rebates to 
adopt the same billing dispute practice as the Exchange's affiliates 
and other exchanges. 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.

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 
adopt the same billing dispute practice as the Exchange's affiliates 
and other exchanges. As discussed below, the proposed provision would 
be identical to provision [sic] in the fee schedules of the Exchange's 
affiliates the New York Stock Exchange LLC (``NYSE''), NYSE Arca, Inc. 
(``NYSE Arca''), and NYSE American LLC (``NYSE American'') as well as 
other equities and options exchanges.
Background
    The Exchange proposes to amend its Schedule of Fees and Rebates to 
adopt a billing procedure to prevent ETP Holders from contesting their 
bills long after they have been sent an invoice. The procedure proposed 
by the Exchange is the same as that in place at the Exchange's equities 
and options affiliates \4\ and substantially the same as that in place 
at other equities and options exchanges.\5\
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    \4\ See New York Stock Exchange Price List 2018, available at 
https://www.nyse.com/publicdocs/nyse/markets/nyse/NYSE_Price_List.pdf (``All fee disputes concerning fees billed by 
the Exchange must be submitted to the Exchange in writing and must 
be accompanied by supporting documentation. All fee disputes must be 
submitted no later than sixty (60) days after receipt of a billing 
invoice''); NYSE Arca Equities Fees and Charges, available at 
https://www.nyse.com/publicdocs/nyse/markets/nyse-arca/NYSE_Arca_Marketplace_Fees.pdf (same); NYSE Arca Options Fees and 
Charges, available at https://www.nyse.com/publicdocs/nyse/markets/arca-options/NYSE_Arca_Options_Fee_Schedule.pdf (same); NYSE 
American Equities Price List, available at https://www.nyse.com/publicdocs/nyse/markets/nyse-american/NYSE_America_Equities_Price_List.pdf (same); and NYSE American 
Options Fee Schedule, available at https://www.nyse.com/publicdocs/nyse/markets/american-options/NYSE_American_Options_Fee_Schedule.pdf 
(same).
    \5\ See NASDAQ Equity Rule 7007(b) (All pricing disputes 
concerning fees or rebates, which are listed in paragraph (a), which 
are billed by the Exchange must be submitted to the Exchange in 
writing and must be accompanied by supporting documentation and all 
pricing disputes must be submitted no later than sixty (60) days 
after receipt of a billing invoice); NASDAQ Options Rules, Chapter 
XV, Sect. 7 (same); NASDAQ BX Options Rules, Chapter XV (Options 
Pricing), Sec. 7(b)[sic] (BX Options Fee Disputes) (same); NASDAQ 
PHLX LLC Pricing Schedule, available at http://nasdaqtrader.com/Micro.aspx?id=PHLXPricing (same); NASDAQ ISE Schedule of Fees 
Preface, available at http://ise.cchwallstreet.com/tools/PlatformViewer.asp?selectednode=chp_1_1_1&manual=%2Fcontents%2Fise%2Fise-fee%2F (same); NASDAQ GEMX Schedule of Fees, available at http://nasdaqgemx.cchwallstreet.com/tools/PlatformViewer.asp?selectednode=chp_1_1_1&manual=%2Fcontents%2Fgemx%2Fise-fee-gemx%2F (same); NASDAQ MRX Schedule of Fees, available at 
http://nasdaqmrx.cchwallstreet.com/tools/PlatformViewer.asp?selectednode=chp_1_1_1&manual=%2Fcontents%2Fmrx%2Fise-fee-mrx%2F (same); MIAX Options Fee Schedule, available at 
https://www.miaxoptions.com/sites/default/files/fee_schedule-files/MIAX_Options_Fee_Schedule_08072018.pdf (same); and MIAX Pearl Fee 
Schedule, available at https://www.miaxoptions.com/sites/default/files/fee_schedule-files/MIAX_Options_Fee_Schedule_08072018.pdf 
(same).

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[[Page 53348]]

    As proposed, all fee disputes concerning fees billed by the 
Exchange would have to be submitted to the Exchange in writing and 
accompanied by supporting documentation. Further, all fee disputes 
would have be [sic] submitted no later than sixty (60) days after 
receipt of a billing invoice. After sixty days, all fees assessed by 
the Exchange would be considered final. The Exchange believes that this 
requirement, which is the same as that in place at the Exchange's 
equities and options market affiliates,\6\ will streamline the billing 
dispute process.
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    \6\ See note 4, supra.
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    The Exchange believes it is reasonable for ETP Holders to become 
aware of any potential billing errors within sixty calendar days of 
receiving an invoice. Requiring that ETP Holders dispute an invoice 
within this time period will encourage ETP Holders 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 
ETP Holders 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.\7\
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    \7\ The same rationale has been advanced by the other markets 
that have adopted the proposed billing procedure. See, e.g., 
Securities Exchange Act Release No. 71286 [sic] (January 14, 2014), 
79 FR 3442, 3442 (January 21, 2014) (SR-ISE-2014-02).
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    In order for ETP Holders to be fully aware of this rule regarding 
fee disputes, the Exchange proposes to include the language proposed 
for the Schedule of Fees and Rebates in each customer invoice.
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, and 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.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(4) & (5).
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    The Exchange believes the requirement to submit all billing 
disputes in writing, and with supporting documentation, within sixty 
days from receipt of the invoice, is reasonable 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 and not unfairly discriminatory because it applies equally to 
all ETP Holders. The proposed provision regarding fee disputes in the 
Schedule of Fees and Rebates promotes the protection of investors and 
the public interest by providing a clear and concise mechanism in 
Exchange Rules for ETP Holders 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 ETP Holders, 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 the same as the billing dispute language 
adopted by the NYSE Affiliates as well as other exchanges.\10\
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    \10\ See notes 4-5, supra.
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    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,\11\ 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. The proposed rule change, which would apply 
equally to all ETP Holders, would establish a clear process for billing 
disputes, and is the same as rules adopted by the Exchange's affiliates 
as well as other exchanges. Because the market for order execution and 
routing is extremely competitive, ETP Holders may readily opt to 
disfavor the Exchange if they believe that alternatives offer them 
better value. The Exchange does not believe the proposed changes will 
impair the ability of ETP Holders or competing order execution venues 
to maintain their competitive standing in the financial markets. 
Moreover, because the Exchange does not propose to alter or modify 
specific fees or credits applicable to ETP Holders, the proposal does 
not impose any burden on competition.
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    \11\ 15 U.S.C. 78f(b)(8).
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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.\14\
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    \12\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \13\ 17 CFR 240.19b-4(f)(6).
    \14\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file the proposed rule change at 
least five business days prior to the date of filing of the proposed 
rule change, or such shorter time as designated by the Commission. 
The Exchange has satisfied this requirement.
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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) \15\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \15\ 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

[[Page 53349]]

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-2018-23 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-NYSENAT-2018-23. 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. 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-2018-23 and should be submitted 
on or before November 13, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-22903 Filed 10-19-18; 8:45 am]
 BILLING CODE 8011-01-P


