[Federal Register Volume 85, Number 145 (Tuesday, July 28, 2020)]
[Notices]
[Pages 45456-45458]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-16265]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-89376; File No. SR-NYSEAMER-2020-57]


Self-Regulatory Organizations; NYSE American LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Amend the 
NYSE American Options Fee Schedule

July 22, 2020.
    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 July 16, 2020 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 modify its rules to conform the 
terminology in the NYSE American Options Fee Schedule (``Fee 
Schedule'') to Rule 960.1NY (Requirements for Penny Interval Program), 
which permits quoting in penny increments for certain option classes on 
a permanent basis. 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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of this filing is to modify its rules to conform the 
terminology in the Fee Schedule to Rule 960.1NY (Requirements for Penny 
Interval Program), which permits quoting in penny increments for 
certain option classes on a permanent basis. In sum, the Exchange 
proposes to define ``Penny'' and ``Non-Penny'' options, with cross-
reference to Rule 960.1NY and to eliminate from the Fee Schedule 
obsolete references to the ``Pilot'' program. This filing is technical 
in nature as it merely updates the nomenclature regarding transactions 
in Penny and Non-Penny options and does not modify any associated fees 
or credits for such transactions.
Background
    On April 1, 2020, the U.S. Securities and Exchange Commission (the 
``Commission'') approved Amendment No. 5 to the Plan for the Purpose of 
Developing and Implementing Procedures Designed to Facilitate the 
Listing and Trading of Standardized Options to Adopt a Penny Interval 
Program (``Amendment No. 5'').\4\ The Exchange then filed to conform 
its rules--including Rule 960.1NY--to Amendment No. 5, which rules 
(like Amendment No. 5) became operative July 1, 2020 (the ``Penny 
Program'').\5\ The Penny Pilot, which was adopted in

[[Page 45457]]

2007 and extended and expanded over the years, expired by its own terms 
on June 30, 2020.\6\
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    \4\ See Securities Exchange Act Release No. 88532 (April 1, 
2020), 85 FR 19545 (April 7, 2020) (File No 4-443).
    \5\ See Securities Exchange Act Release No. 88947 (May 26, 
2020), 85 FR 33249 (June 1, 2020) (NYSEAMER-2020-41) (immediately 
effective filing that is operative on July 1, 2020, which outlines 
the history of the Penny Pilot program and details the process for 
the Penny Interval Program).
    \6\ See Securities Exchange Act Release No. 87633 (November 26, 
2019) 84 FR 66251 (December 3, 2019) (NYSEAMER-2019-51).
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Proposed Changes
    The Exchange proposes to modify the terminology in the Fee Schedule 
to align with the terminology in the Penny Program by amending the 
definitions for ``Penny'' and ``Non-Penny'' options and eliminating all 
references to ``Pilot.'' \7\ As proposed, a ```Penny' option refers to 
option classes that participate in the Penny Interval Program, as 
described in Rule 960.1NY'' and a ```Non-Penny' option refers to option 
classes that do not participate in the Penny Interval Program, as 
described in Rule 960.1NY.'' \8\
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    \7\ See generally proposed Fee Schedule.
    \8\ See proposed Fee Schedule, KEY TERMS and DEFINITIONS.
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    Consistent with the foregoing, the Exchange proposes to eliminate 
from the Fee Schedule all references to ``Pilot'' as that term relates 
to the ``Penny Pilot'' because such references became obsolete as of 
July 1, 2020.\9\
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    \9\ See proposed Fee Schedule, Sections I.G and I.H (deleting 
reference to ``Pilot'' throughout).
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    For consistency in usage and terminology, the Exchange proposes to 
modify references to ``Non-Penny'' in existing text to capitalize and 
hyphenate the term \10\ and, in note 1 to the Complex CUBE Auction 
table in Section I.G. In addition, the Exchange proposes to remove the 
terms ``Pilot'' and ``Pilot issues'' from the Complex CUBE Auction 
table in Section I.G. The Exchanges believes these changes would add 
clarity, transparency and internal consistency.
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    \10\ See id. The Exchange also proposes the non-substantive 
change of adding a period to the last sentence of note 1 to the 
Complex CUBE Auction table in Section I.G. See proposed Fee 
Schedule, Sections I.G.
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Securities Exchange Act of 1934 (the ``Act''),\11\ in 
general, and furthers the objectives of Section 6(b)(5) of the Act,\12\ 
in particular, in that it is designed to prevent fraudulent and 
manipulative acts and practices, 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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    \11\ 15 U.S.C. 78f(b).
    \12\ 15 U.S.C. 78f(b)(5).
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    In particular, the proposed rule change, which conforms the 
terminology in the Fee Schedule to Rule 960.1NY, promotes just and 
equitable principles of trade because it does not alter any existing 
fees or credits but instead is technical in nature insofar as it amends 
the definitions for ``Penny'' and ``Non-Penny'' options, consistent 
with Exchange rules, and removes references to the now-expired (Penny) 
``Pilot.'' This proposed change would provide internal consistency 
within Exchange rules and operate to protect investors and the 
investing public by making the Exchange rules easier to navigate and 
comprehend. The proposed change would render the rules more accurate 
and reduce potential investor confusion, thus helping to facilitate the 
maintenance of a fair and orderly market.
    Regarding the proposed technical changes (see supra notes 9 and 
10), the Exchange believes the changes would add clarity and 
transparency to the Fee Schedule making it easier to navigate and 
comprehend to the benefit of all market participants.

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 proposal, which modifies the terminology in 
the Fee Schedule to align with the terminology in the Exchange's rules, 
is not a competitive filing. Instead, the proposed change is meant to 
add clarity and transparency to the Fee Schedule to the benefit of all 
market participants that trade on the Exchange. Given the technical 
nature of this filing, the Exchange anticipates that other options 
exchanges will similarly update their fee schedules (as needed) to 
align with any rule(s) adopted in conformance with Amendment No. 5.

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 \13\ and Rule 19b-4(f)(6) thereunder.\14\ 
Because the foregoing 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 for 
30 days after the date of the filing, or such shorter time as the 
Commission may designate, it has become effective pursuant to Section 
19(b)(3)(A) of the Act \15\ and Rule 19b-4(f)(6) \16\ thereunder. The 
Exchange has proposed to implement the proposed rule change immediately 
upon filing and has asked the Commission to waive the 30-day operative 
delay for this filing.
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    \13\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \14\ 17 CFR 240.19b-4(f)(6).
    \15\ 15 U.S.C. 78s(b)(3)(A).
    \16\ 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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    The Commission believes that waiving the 30-day operative delay is 
consistent with the protection of investors and the public interest 
because it will allow the Exchange to modify the terminology in its fee 
schedule to conform it to the Penny Program, which is currently 
described in NYSE American Rule 960.1NY. The proposed rule change does 
not raise any novel issues and is technical in nature as it is designed 
to update the language in the Exchange's fee schedule to reflect the 
language used throughout the Exchange's rulebook. The Commission 
believes that the proposed rule change proposes ministerial changes 
which are designed to alleviate the potential for investor confusion. 
Accordingly, the Commission designates the proposed rule change as 
operative upon filing.\17\
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    \17\ For purposes only of waiving the operative delay for this 
proposal, the Commission has considered the proposed rule's impact 
on efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    At any time within 60 days of the filing of the 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 to 
determine whether the proposed rule change should be approved or 
disapproved.

[[Page 45458]]

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-NYSEAMER-2020-57 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-NYSEAMER-2020-57. 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-NYSEAMER-2020-57 and should be submitted 
on or before August 18, 2020.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\18\
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    \18\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-16265 Filed 7-27-20; 8:45 am]
BILLING CODE 8011-01-P


