Federal Register / Vol. 85, No. 237 / Wednesday, December 9, 2020 / Notices 79235 

25 15 U.S.C. 78s(b)(3)(A). 

26 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires a self-regulatory organization to 

give the Commission written notice of its intent to 

file the proposed rule change, along with a brief 

description and text of 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. 27 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

precision and readability of the Rule 

text and will not have any competitive 

impact on participants. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

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 from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 25 and Rule 19b– 

4(f)(6) thereunder.26

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. 

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– 

Phlx–2020–51 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–Phlx–2020–51. 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–Phlx–2020–51 and should 

be submitted on or before December 30, 

2020. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.27

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2020–26991 Filed 12–8–20; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–90556; File No. SR– 

NYSEArca–2020–101] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Streamline the NYSE 

Arca Equities Fees and Charges 

December 3, 2020 

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 November 

23, 2020, NYSE Arca, Inc. (‘‘NYSE 

Arca’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared by the Exchange. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to streamline 

the NYSE Arca Equities Fees and 

Charges (‘‘Fee Schedule’’) by deleting 

redundant rule text from Tier 1, Tier 2 

and Tier 3 pricing tiers. The Exchange 

proposes to implement the fee changes 

effective November 23, 2020. 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. 


jbell on DSKJLSW7X2PROD with NOTICES
79236 Federal Register / Vol. 85, No. 237 / Wednesday, December 9, 2020 / Notices 

4All references to ETP Holders in connection 

with this proposed fee change include Market 

Makers. 

5US CADV means United States Consolidated 

Average Daily Volume for transactions reported to 

the Consolidated Tape, excluding odd lots through 

January 31, 2014 (except for purposes of Lead 

Market Maker pricing), and excludes volume on 

days when the market closes early and on the date 

of the annual reconstitution of the Russell 

Investments Indexes. Transactions that are not 

reported to the Consolidated Tape are not included 

in US CADV. See Fee Schedule, footnote 3. 

6Pursuant to the LMM Transaction Fees and 

Credits pricing program, ETP Holders affiliated 

with LMMs can receive an additional credit when 

such ETP Holders provide displayed liquidity to the 

Book based on the number of Less Active ETP 

Securities in which the LMM is registered as the 

LMM. See Securities Exchange Act Release No. 

87978 (January 15, 2020), 85 FR 3727 (January 22, 

2020) (SR–NYSEArca–2020–03). 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to streamline 

the Fee Schedule by deleting redundant 

rule text from Tier 1, Tier 2 and Tier 3 

pricing tiers. The Exchange proposes to 

implement the fee changes effective 

November 23, 2020. 

Currently, each of Tier 1, Tier 2 and 

Tier 3 pricing tiers provides fees and 

credits that ETP Holders 4 can qualify 

for if they meet the prescribed volume 

criteria. 

Historically, in addition to the fees 

and credits applicable to each of Tier 1, 

Tier 2 and Tier 3 pricing tiers, each such 

tier also included the Basic Rates fees 

and credits. The Exchange believes this 

approach has caused more confusion 

than clarity and proposes to delete the 

redundant rule text that appears in Tier 

1, Tier 2 and Tier 3. Each of the fees and 

credits proposed for deletion currently 

appear under the Basic Rates section of 

the Fee Schedule and would continue to 

apply to ETP Holders for their activity 

that falls outside of Tier 1, Tier 2 and 

Tier 3, as applicable. The Exchange is 

not proposing any change to the fees 

and credits applicable to ETP Holders 

other than to delete redundant text from 

Tier 1, Tier 2 and Tier 3. 

Under Tier 1, ETP Holders that 

provide liquidity an average daily share 

volume per month of 0.70% or more of 

the US consolidated average daily 

volume (‘‘US CADV’’) 5 pay a fee of 

$0.0030 per share for orders, including 

Primary Only (‘‘PO’’) Orders, routed to 

any away market that remove liquidity 

in Tape A, Tape B and Tape C 

securities, and receive a credit of 

$0.0031 per share for orders that 

provide liquidity in Tape A securities, 

$0.0023 per share in Tape B securities,6

and $0.0032 per share in Tape C 

securities. Additionally, ETP Holders 

that qualify for Tier 1 also pay a fee of 

$0.0010 per share for Market, MarketOn-Close, Limit-On-Close, and AuctionOnly Orders executed in a Closing 

Auction. All other fees and credits 

under Tier 1 are identical to the fees and 

credits provided under the Basic Rates 

section of the Fee Schedule. The 

Exchange is not proposing to adopt any 

new fees or credits or remove any 

current fees or credits under Tier 1 with 

this proposed rule change. 

Accordingly, the Exchange proposes 

to delete the following fees and credits 

applicable to Tape A and Tape C 

securities under Tier 1 of the Fee 

Schedule, all of which currently appear 

under Basic Rates on the Fee Schedule: 

• $0.0030 per share (fee) for orders 

that take liquidity from the Book for 

Tape A Securities and Tape C 

Securities. 

• For Mid-Point Liquidity (‘‘MPL’’) 

orders providing liquidity to the Book: 

Æ $0.0015 per share (credit) in Tape 

A Securities and $0.0020 per share 

(credit) in Tape C Securities if provided 

liquidity in MPL Orders for Tape A, 

Tape B and Tape C Securities combined 

(‘‘MPL Adding ADV’’) during the billing 

month is at least 3 million shares; 

Æ $0.0015 per share (credit) in Tape 

A Securities and Tape C Securities if 

MPL Adding ADV during the billing 

month is at least 1.5 million shares and 

less than 3 million shares; 

Æ $0.0010 per share (credit) in Tape 

A and Tape C Securities. 

• $0.0030 per share (fee) for MPL 

orders removing liquidity from the Book 

that are not designated as ‘‘Retail 

Orders’’ defined below. 

• $0.0010 per share (fee) for MPL 

orders removing liquidity from the Book 

and are designated as ‘‘retail’’ that meet 

the requirements of Rule 7.44–E(a)(3) 

but that are not executed in the Retail 

Liquidity Program (‘‘Retail Orders’’). 

• $0.0015 per share (fee) for Market 

and Auction-Only Orders executed in 

an Early Open Auction, Core Open 

Auction or Trading Halt Auction, 

capped at $20,000 per month per Equity 

Trading Permit ID. 

• No fee or credit for Limit NonDisplayed Orders that provide liquidity 

to the Book. 

• $0.0030 per share (fee) for Limit 

Non-Displayed Orders that take 

liquidity from the Book. 

Additionally, the Exchange proposes 

to delete the following fees and credits 

applicable to Tape A securities under 

Tier 1 of the Fee Schedule: 

• $0.0012 per share (credit) for PO 

Orders that provide liquidity to the 

NYSE. 

• $0.0010 per share (fee) for PO 

Orders routed to the NYSE that execute 

in the opening or closing auction. 

Finally, under Tier 1, the Fee 

Schedule currently provides for a fee of 

$0.0029 per share for orders in Tape B 

securities that take liquidity from the 

Book, and a fee of $0.0029 per share for 

Limit Non-Displayed Orders that take 

liquidity from the Book. The Exchange 

proposes to merge these two fees into a 

single fee by adding the words 

‘‘including Limit Non-Displayed Limit 

Orders’’ to the former fee and deleting 

the text of the latter from the Fee 

Schedule. In addition, similar to the 

statement that currently appears at the 

end of Tier 3 of the Fee Schedule, the 

Exchange proposes to add the words 

‘‘For all other fees and credits, Basic 

Rates apply’’ at the end of Tier 1 to 

clarify that the rates that are proposed 

for deletion would continue to apply to 

ETP Holders that qualify for Tier 1 for 

all of their other trading activity. The 

Exchange also proposes to delete the 

following fees and credits applicable to 

Tape B securities under Tier 1 as each 

are duplicative and currently appear 

under Basic Rates: 

• No per share (credit) for PO orders 

routed to NYSE American that provide 

liquidity to the NYSE American Book. 

• MPL orders providing liquidity to 

the Book: 

Æ $0.0020 per share (credit) if MPL 

Adding ADV during the billing month is 

at least 3 million shares; 

Æ $0.0015 per share (credit) if MPL 

Adding ADV during the billing month is 

at least 1.5 million shares and less than 

3 million shares; 

Æ $0.0010 per share (credit) if MPL 

Adding ADV during the billing month is 

less than 1.5 million shares. 

• $0.0030 per share (fee) for MPL 

orders removing liquidity from the Book 

that are not designated as Retail Orders. 

• $0.0010 per share (fee) for MPL 

orders removing liquidity from the Book 

that are designated as Retail Orders. 

• $0.0015 per share (fee) for Market 

and Auction-Only Orders executed in 

an Early Open Auction, Core Open 

Auction or Trading Halt Auction, 

capped at $20,000 per month per Equity 

Trading Permit ID. 

• $0.0005 per share (fee) for PO 

Orders routed to NYSE American that 

execute in the opening or closing 

auction. 

• No fee or credit for Limit NonDisplayed Orders that provide liquidity 

to the Book. 

Under Tier 2, ETP Holders can qualify 

for the applicable fees and credits in one 

of two ways. ETP Holders can either 

provide liquidity an average daily share 

volume per month of 0.30% or more, 


jbell on DSKJLSW7X2PROD with NOTICES
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7Under Tier 2, ETP Holders can alternatively 

qualify for a credit of $0.0031 per share for orders 

in Tape A and Tape C securities that provide 

displayed liquidity if such ETP Holder meets the 

requirements of Tier 2 and, (1) executes providing 

volume equal to at least 0.30% of US CADV, (2) 

executes removing volume equal to at least 0.285% 

of US CADV, and (3) executes Market-On-Close and 

Limit-On-Close Orders executed in a Closing 

Auction of at least 0.075% of US CADV. 

8Under Tier 2, ETP Holders can alternatively 

qualify for a credit of $0.0024 per share for orders 

in Tape B securities that provide displayed 

liquidity if such ETP Holder meets the requirements 

of Tier 2 and, (1) executes providing volume equal 

to at least 0.30% of US CADV, (2) executes 

removing volume equal to at least 0.285% of US 

CADV, and (3) executes Market-On-Close and 

Limit-On-Close Orders executed in a Closing 

Auction of at least 0.075% of US CADV. Pursuant 

to the LMM Transaction Fees and Credits pricing 

program, ETP Holders affiliated with LMMs can 

receive an additional credit when such ETP Holders 

provide displayed liquidity to the Book in Tape B 

securities based on the number of Less Active ETP 

Securities in which the LMM is registered as the 

LMM. 

9Under Tier 3, ETP Holder can also receive a 

credit of $0.0027 per share for orders in Tape A and 

Tape C securities if the ETP Holder meets the 

requirements of Tier 3 and its ADV of executed 

orders that provide liquidity is at least 0.05% of US 

CADV more than the ETP Holder’s ADV of executed 

orders that provide liquidity as a percent of US 

CADV in May 2019. 

10Pursuant to the LMM Transaction Fees and 

Credits pricing program, ETP Holders affiliated 

with LMMs can receive an additional credit when 

such ETP Holders provide displayed liquidity to the 

Book based on the number of Less Active ETP 

Securities in which the LMM is registered as the 

LMM. 

but less than 0.70% of the US CADV. 

Alternatively, ETP Holders can (a) 

provide liquidity an average daily share 

volume per month of 0.25% or more, 

but less than 0.70% of the US CADV, (b) 

execute removing volume in Tape B 

Securities equal to at least 0.40% of US 

Tape B CADV, and (c) maintain 

affiliation with an OTP Holder or OTP 

Firm that provides an ADV of electronic 

posted Customer and Professional 

Customer executions in all issues on 

NYSE Arca Options (excluding mini 

options) of at least 0.25% of total 

Customer equity and ETF option ADV 

as reported by OCC. 

ETP Holders that qualify for Tier 2 

pay a fee of $0.0030 per share for orders, 

including PO Orders, routed to any 

away market that remove liquidity in 

Tape A, Tape B and Tape C securities, 

and receive a credit of $0.0029 per share 

for orders that provide liquidity in Tape 

A and Tape C securities,7 and $0.0022 

per share for orders that provide 

liquidity in Tape B securities.8 All other 

fees and credits under Tier 2 are 

identical to the fees and credits 

provided under the Basic Rates section 

of the Fee Schedule. The Exchange is 

not proposing to adopt any new fees or 

credits or remove any current fees or 

credits under Tier 2 with this proposed 

rule change. 

Accordingly, the Exchange proposes 

to delete the following fees and credits 

applicable to Tape A and Tape C 

securities under Tier 2 of the Fee 

Schedule, all of which currently appear 

under Basic Rates on the Fee Schedule: 

• $0.0030 per share (fee) for orders 

that take liquidity from the Book. 

• For Mid-Point Liquidity (‘‘MPL’’) 

orders providing liquidity to the Book: 

Æ $0.0015 per share (credit) in Tape 

A Securities and $0.0020 per share 

(credit) in Tape C Securities if provided 

liquidity in MPL Orders for Tape A, 

Tape B and Tape C Securities combined 

(‘‘MPL Adding ADV’’) during the billing 

month is at least 3 million shares; 

Æ $0.0015 per share (credit) in Tape 

A Securities and Tape C Securities if 

MPL Adding ADV during the billing 

month is at least 1.5 million shares and 

less than 3 million shares; 

Æ $0.0010 per share (credit) in Tape 

A and Tape C Securities. 

• $0.0030 per share (fee) for MPL 

orders removing liquidity from the Book 

that are not designated as ‘‘Retail 

Orders’’ defined below. 

• $0.0010 per share (fee) for MPL 

orders removing liquidity from the Book 

that are designated Retail Orders. 

• $0.0015 per share (fee) for Market 

and Auction-Only Orders executed in 

an Early Open Auction, Core Open 

Auction or Trading Halt Auction, 

capped at $20,000 per month per Equity 

Trading Permit ID. 

• No fee or credit for Limit NonDisplayed Orders that provide liquidity 

to the Book. 

• $0.0030 per share (fee) for Limit 

Non-Displayed Orders that take 

liquidity from the Book. 

Additionally, the Exchange proposes 

to delete the following fees and credits 

applicable to Tape A securities under 

Tier 2 of the Fee Schedule: 

• $0.0012 per share (credit) for PO 

Orders that provide liquidity to the 

NYSE. 

• $0.0010 per share (fee) for PO 

Orders routed to the NYSE that execute 

in the opening or closing auction. 

Finally, under Tier 2, the Fee 

Schedule currently provides for a fee of 

$0.0029 per share for orders in Tape B 

securities that take liquidity from the 

Book, and a fee of $0.0029 per share for 

Limit Non-Displayed Orders that take 

liquidity from the Book. The Exchange 

proposes to merge these two fees into a 

single fee by adding the words 

‘‘including Limit Non-Displayed Limit 

Orders’’ to the former fee and deleting 

the text of the latter from the Fee 

Schedule. In addition, similar to the 

statement that currently appears at the 

end of Tier 3 of the Fee Schedule, the 

Exchange proposes to add the words 

‘‘For all other fees and credits, Basic 

Rates apply’’ at the end of Tier 2 to 

clarify that the rates that are proposed 

for deletion would continue to apply to 

ETP Holders that qualify for Tier 2 for 

all of their other trading activity. The 

Exchange also proposes to delete the 

following fees and credits applicable to 

Tape B securities under Tier 2 as each 

are duplicative and currently appear 

under Basic Rates: 

• No per share (credit) for PO orders 

routed to NYSE American that provide 

liquidity to the NYSE American Book. 

• MPL orders providing liquidity to 

the Book: 

Æ $0.0020 per share (credit) if MPL 

Adding ADV during the billing month is 

at least 3 million shares; 

Æ $0.0015 per share (credit) if MPL 

Adding ADV during the billing month is 

at least 1.5 million shares and less than 

3 million shares; 

Æ $0.0010 per share (credit) if MPL 

Adding ADV during the billing month is 

less than 1.5 million shares. 

• $0.0030 per share (fee) for MPL 

orders removing liquidity from the Book 

that are not designated as Retail Orders. 

• $0.0010 per share (fee) for MPL 

orders removing liquidity from the Book 

that are designated as Retail Orders. 

• $0.0015 per share (fee) for Market 

and Auction-Only Orders executed in 

an Early Open Auction, Core Open 

Auction or Trading Halt Auction, 

capped at $20,000 per month per Equity 

Trading Permit ID. 

• $0.0005 per share (fee) for PO 

Orders routed to NYSE American that 

execute in the opening or closing 

auction. 

• No fee or credit for Limit NonDisplayed Orders that provide liquidity 

to the Book. 

Under Tier 3, ETP Holders that 

provide liquidity an average daily share 

volume per month of 0.20% or more, 

but less than 0.30% of the US CADV 

pay a fee of $0.0030 per share for orders, 

including PO Orders, routed to any 

away market that remove liquidity in 

Tape A, Tape B and Tape C securities, 

and receive a credit of $0.0025 per share 

for orders that provide liquidity in Tape 

A and Tape C securities,9 or and 

$0.0022 per share in Tape B securities.10

Additionally, ETP Holders that qualify 

for Tier 3 also pay a fee of $0.0010 per 

share for Market, Market-On-Close, 

Limit-On-Close, and Auction-Only 

Orders executed in a Closing Auction. 

All other fees and credits under Tier 3 

are identical to the fees and credits 

provided under the Basic Rates section 

of the Fee Schedule. The Exchange is 


jbell on DSKJLSW7X2PROD with NOTICES
79238 Federal Register / Vol. 85, No. 237 / Wednesday, December 9, 2020 / Notices 

11 15 U.S.C. 78f(b). 12 15 U.S.C. 78f(b)(4) and (5). 13 15 U.S.C. 78f(b)(8). 

14 15 U.S.C. 78s(b)(3)(A). 

15 17 CFR 240.19b–4(f)(2). 

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

not proposing to adopt any new fees or 

credits or remove any current fees or 

credits under Tier 3 with this proposed 

rule change. 

Accordingly, the Exchange proposes 

to delete the following fees and credits 

applicable to Tape A and Tape C 

securities under Tier 3 of the Fee 

Schedule, all of which currently appear 

under Basic Rates on the Fee Schedule: 

• $0.0030 per share (fee) for orders 

that take liquidity from the Book. 

• No fee or credit for Limit NonDisplayed Orders that provide liquidity 

to the Book. 

• $0.0030 per share (fee) for Limit 

Non-Displayed Orders that take 

liquidity from the Book. 

Additionally, the Exchange proposes 

to delete the following fee applicable to 

Tape A securities under Tier 3 of the 

Fee Schedule: 

• $0.0010 per share (fee) for PO 

Orders routed to the NYSE that execute 

in the opening or closing auction. 

Finally, under Tier 3, the Fee 

Schedule currently provides for a fee of 

$0.0029 per share for orders in Tape B 

securities that take liquidity from the 

Book, and a fee of $0.0029 per share for 

Limit Non-Displayed Orders that take 

liquidity from the Book. The Exchange 

proposes to merge these two fees into a 

single fee by adding the words 

‘‘including Limit Non-Displayed Limit 

Orders’’ to the former fee and deleting 

the text of the latter from the Fee 

Schedule. The Exchange also proposes 

to delete the following fees and credits 

applicable to Tape B securities under 

Tier 3 as it is duplicative and currently 

appears under Basic Rates: 

• No fee or credit for Limit NonDisplayed Orders that provide liquidity 

to the Book. 

The proposed changes are not 

otherwise intended to address any other 

issues, and the Exchange is not aware of 

any significant problems that market 

participants would have in complying 

with the proposed changes. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,11 in general, and 

furthers the objectives of Sections 

6(b)(4) and(5) of the Act,12 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. 

The Exchange believes that the 

proposed rule change to streamline the 

Fee Schedule by deleting redundant 

rule text is reasonable because each of 

the fees and credits proposed for 

deletion currently appear under the 

Basic Rates section of the Fee Schedule 

which is the more appropriate place for 

such fees and credits. The Exchange 

believes providing the base rates under 

the Basic Rates section of the Fee 

Schedule would promote clarity to the 

Fee Schedule and reduce confusion to 

ETP Holders as to which fees and 

credits are applicable to their trading 

activity on the Exchange. The Exchange 

believes it is reasonable to delete the 

redundant fees and credits from Tier 1, 

Tier 2 and Tier 3 of the Fee Schedule 

and therefore, streamline the Fee 

Schedule to promote clarity and reduce 

confusion as to the applicability of fees 

and credits that ETP Holders would be 

subject to. The Exchange believes 

deleting redundant fees and credits 

would also simplify the Fee Schedule. 

The Exchange believes that deleting 

redundant fees and credits from Tier 1, 

Tier 2 and Tier of the Fee Schedule is 

equitable and not unfairly 

discriminatory because the resulting 

streamlined Fee Schedule would 

continue to apply to ETP Holders as it 

does currently because the Exchange is 

not adopting any new fees or credits or 

removing any current fees or credits 

from the Fee Schedule. All ETP Holders 

would continue to be subject to the 

same fees and credits that currently 

apply to them. 

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,13 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. 

Intramarket Competition. The 

Exchange’s proposal to delete redundant 

fees and credits from Tier 1, Tier 2 and 

Tier 3 of the Fee Schedule will not place 

any undue burden on intramarket 

competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act because all ETP 

Holders would continue to be subject to 

the same fees and credits that currently 

apply to them. To the extent the 

proposed rule change places a burden 

on competition, any such burden would 

be outweighed by the fact that a 

streamlined Fee Schedule would 

promote clarity and reduce confusion 

with respect to the fees and credits that 

ETP Holders would be subject to. 

Intermarket Competition. The 

Exchange believes the proposed rule 

change does not impose any burden on 

intermarket competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange operates in a highly 

competitive market in which market 

participants can readily choose to send 

their orders to other exchanges and offexchange venues if they deem fee levels 

at those other venues to be more 

favorable. Market share statistics 

provide ample evidence that price 

competition between exchanges is 

fierce, with liquidity and market share 

moving freely from one execution venue 

to another in reaction to pricing 

changes. 

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) 14 of the Act and 

subparagraph (f)(2) of Rule 19b–4 15

thereunder, because it establishes a due, 

fee, or other charge imposed by the 

Exchange. 

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. 

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: 


jbell on DSKJLSW7X2PROD with NOTICES
Federal Register / Vol. 85, No. 237 / Wednesday, December 9, 2020 / Notices 79239 

17 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See Securities Exchange Act Release No. 51808 

(June 9, 2005), 70 FR 37496, 37499 (S7–10–04) 

(Final Rule) (‘‘Regulation NMS’’). 

5See Securities Exchange Act Release No. 61358, 

75 FR 3594, 3597 (January 21, 2010) (File No. S7– 

02–10) (Concept Release on Equity Market 

Structure). 

6See Cboe Global Markets, U.S. Equities Market 

Volume Summary, available at http://

markets.cboe.com/us/equities/market_share/. See 

generally https://www.sec.gov/fast-answers/ 

divisionsmarketregmrexchangesshtml.html. 

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–2020–101 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–2020–101. 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–NYSEArca–2020–101, and 

should be submitted on or before 

December 30, 2020. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2020–26990 Filed 12–8–20; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–90560; File No. SR– 

NYSENAT–2020–35] 

Self-Regulatory Organizations; NYSE 

National, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Its Schedule of 

Fees and Rebates 

December 3, 2020. 

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 December 

1, 2020, NYSE National, Inc. (‘‘NYSE 

National’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared by the Exchange. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

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 (‘‘Fee 

Schedule’’) to modify Adding Tier 2 and 

Removing Tier 1. The Exchange 

proposes to implement the rule change 

on December 1, 2020. 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 Exchange proposes to amend its 

Fee Schedule to modify Adding Tier 2 

and Removing Tier 1. 

The proposed changes respond to the 

current competitive environment where 

order flow providers have a choice of 

where to direct liquidity-providing and 

liquidity-removing orders by offering 

further incentives for ETP Holders to 

send additional displayed and nondisplayed liquidity to the Exchange. The 

proposed changes also respond to the 

current volatile market environment 

that has resulted in unprecedented 

average daily volumes, which is related 

to the ongoing spread of the novel 

coronavirus (‘‘COVID–19’’). 

The Exchange proposes to implement 

the rule change on December 1, 2020. 

Current Market and Competitive 

Environment 

The Exchange operates in a highly 

competitive market. The Commission 

has repeatedly expressed its preference 

for competition over regulatory 

intervention in determining prices, 

products, and services in the securities 

markets. Specifically, in Regulation 

NMS, the Commission highlighted the 

importance of market forces in 

determining prices and SRO revenues 

and, also, recognized that current 

regulation of the market system ‘‘has 

been remarkably successful in 

promoting market competition in its 

broader forms that are most important to 

investors and listed companies.’’ 4

While Regulation NMS has enhanced 

competition, it has also fostered a 

‘‘fragmented’’ market structure where 

trading in a single stock can occur 

across multiple trading centers. When 

multiple trading centers compete for 

order flow in the same stock, the 

Commission has recognized that ‘‘such 

competition can lead to the 

fragmentation of order flow in that 

stock.’’ 5 Indeed, equity trading is 

currently dispersed across 16 

exchanges,6 31 alternative trading 


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