31006 Federal Register / Vol. 83, No. 127 / Monday, July 2, 2018 / Notices 

17 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Rule 7300. 

4The term ‘‘Preferred Market Maker’’ means a 

Market Maker designated as such by a Participant 

with respect to an order submitted by such 

Participant to BOX. See Rule 7300(a)(2). 

5See Rule 7300. 

6See Rule 7300(a)(2). 

7See proposed Rule 7300(e). 

8Cboe EDGX Rule 21.8(g)(2) provides a small lot 

allocation preference to Primary Market Makers, 

Nasdaq ISE Rule 713.01(c) provides a small lot 

allocation preference for Primary Market Makers, 

NYSE American Rule 964.2NY provides a small lot 

allocation preference to the Primary Specialist, 

Nasdaq BX Chap. VI, Section 10(c)(2) provides a 

small lot allocation preference for the Lead Market 

Maker, Nasdaq GEM [sic] Rule 713.01(c) provides 

a small lot allocation preference for Primary Market 

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–NASDAQ–2018–048 and 

should be submitted on or before July 

23, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–14118 Filed 6–29–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83525; File No. SR–BOX– 

2018–20] 

Self-Regulatory Organizations; BOX 

Options Exchange LLC; Notice of 

Filing of Proposed Rule Change To 

Amend BOX Rule 7300 (Preferenced 

Orders) To Provide an Additional 

Allocation Preference to Preferred 

Market Makers 

June 26, 2018. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on June 13, 

2018, BOX Options Exchange LLC (the 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of the Substance 

of the Proposed Rule Change 

The Exchange proposes to amend 

BOX Rule 7300 (Preferenced Orders) to 

provide an additional allocation 

preference to Preferred Market Makers. 

The text of the proposed rule change is 

available from the principal office of the 

Exchange, at the Commission’s Public 

Reference Room and also on the 

Exchange’s internet website at http://

boxoptions.com. 

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 these statements may be examined at 

the places specified in Item IV below. 

The self-regulatory organization has 

prepared summaries, set forth in 

Sections A, B, and C below, of the most 

significant aspects 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 

BOX Rule 7300 (Preferenced Orders) to 

provide an additional allocation 

preference to Preferred Market Makers. 

Specifically, the Exchange is proposing 

to provide Preferred Market Makers 

with a small size order allocation 

preference. 

Background 

The Exchange has rules to allow BOX 

Options Participants (‘‘Participants’’) to 

submit orders for which a Market Maker 

is designated to receive an allocation 

preference on the Exchange 

(‘‘Preferenced Orders’’).3 The rules 

provide for the enhanced allocation to 

the Preferred Market Maker 4 only when 

the Preferred Market Maker is quoting at 

NBBO. 

A Preferenced Order is any order 

submitted by a Participant to the 

Exchange for which a Preferred Market 

Maker is designated to receive execution 

priority, with respect to a portion of the 

Preferenced Order, upon meeting 

certain qualifications.5 Preferenced 

Orders are submitted by a Participant by 

designating an order as such and 

identifying a Preferred Market Maker 

when entering the order. 

In order for a Preferred Market Maker 

to be eligible to receive Preferenced 

Orders, they must maintain heightened 

quoting activity. Specifically, a 

Preferred Market Maker must maintain 

a continuous two-sided market, 

throughout the trading day, in 99% of 

the non-adjusted option series of each 

class for which it accepts Preferenced 

Orders, for 90% of the time the 

Exchange is open for trading in each 

such option class.6 A Preferred Market 

Maker is not required to quote in intraday add-on series or series that have a 

time to expiration of nine months or 

more in the classes for which it receives 

Preferenced Orders. 

Small Size Orders 

The Exchange is now proposing to 

amend Rule 7300 to provide an 

additional allocation preference to 

Preferred Market Makers. Specifically, 

the Exchange is proposing that small 

size Preferenced Orders will be 

allocated in full to the Preferred Market 

Maker, subject to certain conditions 

described below.7 Small size orders are 

defined as five (5) or fewer contracts. 

In order for the Preferred Market 

Makers to be allocated the small size 

order, they must be quoting at the NBBO 

when they receive the Preferenced 

Order. As is the case with the current 

allocation of Preferenced Orders, all 

orders from the account of Public 

Customers, if any, will continue to be 

allocated for execution against the 

Preferenced Order first. The Preferred 

Market Maker will only receive the 

small size order allocation if there are 

contracts remaining after any Public 

Customer orders receive an allocation 

against the Preferenced Order. A 

Preferred Market Maker may only be 

allocated up to the size of their quote. 

The Exchange will monitor the 

frequency in which Preferred Market 

Makers receive the small size order 

allocation. Specifically, the Exchange 

will review the proposed provision 

quarterly and will maintain the small 

order size at a level that will not allow 

small size orders executed by Preferred 

Market Makers to account for more than 

40% of the volume executed on the 

Exchange. 

The Exchange does not believe the 

proposal raises any new or novel issues. 

Currently, the vast majority of options 

exchanges provide a small lot allocation 

preference to specialists,8 with the 


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Federal Register / Vol. 83, No. 127 / Monday, July 2, 2018 / Notices 31007 

Makers, Nasdaq MRX provides a small lot 

allocation preference for Primary Market Makers, 

Nasdaq PHLX Rule 1014(g)(vii)(B)(1)(a) provides a 

small lot allocation preference to specialist, MIAX 

Rule 514(g)(2) provides a small lot allocation 

preference for the Primary Lead Market Maker, 

NYSE Arca Rule 6.76A–O(a)(1)(B) provides a small 

lot allocation preference for the Lead Market Maker, 

and Cboe Rule 6.45(c) provides a small lot 

allocation preference for the Designated Primary 

Market Makers or the Lead Market Maker. 

9For purposes of this requirement, a Preferred 

Market Maker is not required to quote in intra-day 

add-on series or series that have a time to expiration 

of nine months or more in the classes for which it 

receives Preferenced Orders and a Market Maker 

may still be a Preferred Market Maker in any such 

series if the Market Maker otherwise complies with 

Rule 7300(a)(2). 

10See Cboe EDGX Rule 22.6(d). 

11See Rule 7300(c)(2). 

12See MIAX Rule 514(g); see also ISE 

Supplementary Material .03 to Rule 713. 

13 15 U.S.C. 78f(b). 

14 15 U.S.C. 78f(b)(5). 

majority of those exchanges restricting 

the number of specialists to one per 

class. The Exchange’s proposal differs in 

that the Exchange is expanding the 

availability of the small lot allocation 

preference to all eligible Preferred 

Market Makers. The Exchange believes 

that providing this benefit to multiple 

Preferred Market Makers will be 

beneficial to the Exchange and the 

market by providing an incentive for 

vigorous quoting by multiple market 

makers per class since a Preferred 

Market Maker must be quoting at NBBO 

in order to receive the small lot 

allocation preference. Additionally, as 

explained above, Preferred Market 

Makers are responsible for heightened 

quoting obligations that must be met in 

order for them to receive Preferenced 

Orders. 

Further, the numerous options 

exchanges that provide exclusive 

specialist assignments afford the 

opportunity for a market maker to be the 

sole specialist in different classes on 

multiple exchanges. This can, and most 

likely does, result in a market maker 

having an exclusive specialist 

assignment in nearly every option class 

spread across multiple exchanges. 

Therefore, they are entitled to a small 

lot allocation preference in every option 

class. As a result of this, an order flow 

provider can direct small lot orders to 

a specific specialist by submitting the 

order to the exchange where the 

specialist is exclusive for that specific 

class and the specialist would have 

priority over all orders and quotes 

except those of Public Customers to 

trade against the small lot. The 

Exchange does not believe that 

providing the small lot allocation 

preference to all qualified Preferred 

Market Makers will alter this current 

behavior because, under the proposal, 

an order flow provider can achieve the 

same result by preferencing the order on 

BOX to a specific Preferred Market 

Maker. 

In addition, the Exchange notes that it 

has increased quoting requirements for 

market makers to be eligible to receive 

the small lot allocation preference. 

Specifically, a Preferred Market Maker 

must maintain a continuous two-sided 

market, pursuant to Rule 8050(c)(1), 

throughout the trading day, in 99% of 

the non-adjusted option series of each 

class for which it accepts Preferenced 

Orders, for 90% of the time the 

Exchange is open for trading in each 

such option class.9 The Exchange notes 

that these quoting requirements are 

higher than another exchange that 

currently provides a small-lot allocation 

preference.10

Allocation 

Currently, the Exchange’s Rules 

provide that at the final price level, 

where the remaining quantity of the 

Preferenced Order is less than the total 

quantity of orders on the Exchange 

available for execution, after all orders 

for the account of Public Customers, if 

any, are allocated against the 

Preferenced Order, then the Preferred 

Market Maker receives its allocation.11

Specifically, a Preferred Market Maker 

shall receive an allocation equal to forty 

percent (40%) of the remaining quantity 

of the Preferenced Order. However, if 

only one other executable, non-public 

Customer order (in addition to the quote 

of the Preferred Market Maker) matches 

the Preferenced Order at the final price 

level, then the allocation to the 

Preferred Market Maker shall be equal to 

fifty percent (50%) of the remaining 

quantity of the Preferenced Order. 

The Exchange is now proposing to 

amend the Preferred Market Maker 

allocation when there is only one other 

non-Public Customer that matches the 

Preferenced Order at the final price 

level. Specifically, the Exchange is 

proposing to increase the Preferred 

Market Maker’s allocation to 60% when 

there is only one other non-Public 

Customer that matches the Preferenced 

Order at the final price level. The 

Exchange notes that other exchanges 

currently provide a 60% allocation 

when there is only one other Participant 

that matches the Preferenced Order at 

the final price level.12

The quantity of the allocation to the 

Preferred Market Maker will continue to 

be limited by the total quantity of the 

Preferred Market Maker quote. 

Executions are allocated in numbers of 

whole contracts and, to ensure the 

allocation priority afforded to Preferred 

Market Makers does not exceed the 

applicable 40% or proposed 60%, 

allocations of fractional contracts to 

Preferred Market Makers in the 

Preferred allocation step are rounded 

down to the nearest whole number, 

which is not less than one (1) contract. 

Legging Orders will not be considered 

when determining whether the 

Preferred Market Maker is allocated 

40% or the proposed 60% in this step. 

As a result, in no case will a Preferred 

Market Maker receive an allocation 

preference (above what it would 

otherwise receive if executed in normal 

price-time priority) in excess of 40% of 

the remaining quantity of the 

Preferenced Order after Public Customer 

orders are filled (or the proposed 60% 

if only one other non-Public Customer 

matches) at the final price level. 

2. Statutory Basis 

The Exchange believes that the 

proposal is consistent with the 

requirements of Section 6(b) of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’),13 in general, and Section 6(b)(5) 

of the Act,14 in particular, in that it is 

designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to foster cooperation and 

coordination with persons engaged in 

facilitating transactions in securities, 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. 

In particular, the Exchange believes 

this proposed rule change is a 

reasonable modification designed to 

provide incentives and enhanced 

allocation to Preferred Market Makers 

when it is quoting at NBBO. The 

Exchange also believes that the 

proposed rule change will increase the 

number of transactions on the Exchange 

by attracting additional order flow to the 

Exchange, which will ultimately 

enhance competition and provide 

customers with additional opportunities 

for execution. The Exchange believes 

these changes are consistent with the 

goals to remove impediments to and to 

perfect the mechanism for a free and 

open market and a national market 

system. Specifically, the Exchange 

believes that the proposal will result in 

increased liquidity available at 

improved prices, with more competitive 

pricing outside the control of any single 

Participant. The proposed rule change 

should promote and foster competition. 

The Exchange believes the proposed 

changes to the Preferenced Order 

allocation to provide a small lot 


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31008 Federal Register / Vol. 83, No. 127 / Monday, July 2, 2018 / Notices 

15For purposes of this requirement, a Preferred 

Market Maker is not required to quote in intra-day 

add-on series or series that have a time to expiration 

of nine months or more in the classes for which it 

receives Preferenced Orders and a Market Maker 

may still be a Preferred Market Maker in any such 

series if the Market Maker otherwise complies with 

Rule 7300(a)(2). 

allocation preference is an improvement 

over the current allocation algorithm, 

and will benefit all market participants 

submitting Preferenced Orders on the 

Exchange. As a result of the proposed 

changes, the Exchange believes that 

existing and additional Participants will 

use Preferenced Orders to increase the 

number of orders that are submitted to 

the Exchange. Additionally, the 

Exchange believes that the proposed 

change to the Preferenced Order 

allocation algorithm will encourage 

greater participation by Market Makers 

to provide quotes on the Exchange as 

Preferred Market Makers. These 

additional responses should encourage 

greater competition on the Exchange, 

which should, in turn, benefit and 

protect investors and the public interest 

through the potential for greater volume 

of orders and executions. 

The proposed rule change continues 

to provide priority of Public Customer 

orders over Preferred Market Makers at 

the same price. The Exchange believes 

this priority is consistent with the 

purposes of the Act. The Exchange 

believes the Preferenced Order 

allocation proposal is designed to 

promote just and equitable principles of 

trade and to protect investors and the 

public interest, because it recognizes the 

unique status of Pubic Customers in the 

marketplace by ensuring Public 

Customers maintain priority before any 

allocations afforded to Preferred Market 

Makers. 

The Exchange believes that the 

proposed Preferenced Order allocation 

changes are reasonable, equitable and 

not unfairly discriminatory. Giving 

Preferred Market Makers the small lot 

allocation preference and allocation 

priority of 60% of the remaining 

quantity of the Preferenced Order in 

certain circumstances will provide 

important incentives for Preferred 

Market Makers to provide liquidity on 

BOX, which provides greater 

opportunity for executions, tighter 

spreads, and better pricing for all 

Participants. While the Commission has, 

in the past, been concerned about 

locking up larger portions of order flow 

from intra-market price competition, the 

Exchange believes that the proposed 

preferred allocation methods adequately 

balance the aim of rewarding Preferred 

Market Makers by limiting the volume 

of small size orders executed by 

Preferred Market Makers to account for 

no more than 40% of the volume 

executed on the Exchange. 

The Exchange believes that the 

Preferred Market Maker allocation is 

designed to promote just and equitable 

principles of trade and to protect 

investors and the public interest, 

because it strikes a reasonable balance 

between encouraging vigorous price 

competition and rewarding Market 

Makers for their unique duties. In order 

to receive an allocation preference, 

Preferred Market Makers must meet 

heightened quoting requirements as 

Market Makers, and also be quoting at 

the NBBO at the time the Preferenced 

Order is received. Heightened quoting 

requirements mean that Preferred 

Market Makers must maintain a 

continuous two-sided market 

throughout the trading day, in 99% of 

the non-adjusted option series of each 

class for which it accepts Preferenced 

Orders, for 90% of the time the 

Exchange is open for trading in each 

such option class.15 Overall, the 

proposed changes to the Preferred 

Market Maker allocations represent a 

careful balancing by the Exchange with 

regard to the rewards and obligations of 

various types of market participants. 

The Exchange believes these 

requirements of Preferred Market 

Makers will provide an incentive for 

Market Makers to assume these 

additional responsibilities beyond those 

already required for Market Makers, 

which will facilitate improved trading 

opportunities on BOX for all 

Participants. 

The Exchange believes this proposed 

rule change is a reasonable modification 

designed to provide further incentives 

and enhanced allocation to a Preferred 

Market Maker when it is quoting at 

NBBO. The Exchange also believes that 

the proposed rule change will increase 

the number of transactions on the 

Exchange by attracting additional 

activity to the Exchange, which will 

ultimately enhance competition and 

provide customers with additional 

opportunities for execution. 

The Exchange believes the proposed 

changes to the Preferenced Order 

allocations are an improvement over the 

current allocation algorithm, and will 

benefit all market participants 

submitting Preferenced Orders on the 

Exchange. Additionally, the Exchange 

believes that the proposed Preferenced 

Order allocation algorithm will 

encourage greater participation by 

Market Makers to provide quotes on the 

Exchange as Preferred Market Makers. 

These additional responses should 

encourage greater competition on the 

Exchange, which should, in turn, 

benefit and protect investors and the 

public interest through the potential for 

greater volume of orders and executions. 

For the foregoing reasons, the 

Exchange believes this proposal is a 

reasonable modification to its rules, 

designed to facilitate increased 

interaction of orders on the Exchange, 

and to do so in a manner that ensures 

a dynamic, real-time trading mechanism 

that maximizes opportunities for trading 

executions of orders. The Exchange 

believes it is appropriate and consistent 

with the Act to adopt the proposed 

changes. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act. In this 

regard, the Exchange notes that the rule 

change is being proposed as a 

competitive response to the options 

exchanges with specialists. The 

Exchange believes that the proposed 

change will allow the Exchange to 

further compete with competitors that 

provide specialist assignments. With 

respect to intra-market competition, the 

Exchange believes that the proposed 

change will promote competition by 

allowing multiple competing Preferred 

Market Makers per class. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange has neither solicited 

nor received comments on the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period 

up to 90 days (i) as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or (ii) as to which 

the self-regulatory organization 

consents, the Commission will: 

(A) By order approve or disapprove 

the proposed rule change, or 

(B) institute proceedings to determine 

whether the proposed rule change 

should be 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. 


daltland on DSKBBV9HB2PROD with NOTICES
Federal Register / Vol. 83, No. 127 / Monday, July 2, 2018 / Notices 31009 

16 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. 

4The Exchange originally filed to amend the Fee 

Schedule on June 1, 2018 (SR–NYSEAmer–2018– 

25) and withdrew such filing on June 11, 2018. 

5Such calculations exclude volume in CUBE, 

QCC, Strategy Executions, or volume attributable to 

Continued 

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– 

BOX–2018–20 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–BOX–2018–20. 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 such 

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–BOX–2018–20, and should 

be submitted on or before July 23, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–14112 Filed 6–29–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meetings 

FEDERAL REGISTER CITATION OF PREVIOUS

ANNOUNCEMENT: 83 FR 29582, 25 Jun 

2018. 

PREVIOUSLY ANNOUNCED TIME AND DATE OF

THE MEETING: Thursday, June 28, 2018 at 

10:00 a.m. 

CHANGES IN THE MEETING: The following 

item will not be considered during the 

Open Meeting on Thursday, June 28, 

2018: 

• Whether the Commission should 

enter into a revised memorandum of 

understanding with the Commodity 

Futures Trading Commission that would 

update and supersede the existing 

regulatory coordination memorandum 

of understanding between the two 

agencies. 

CONTACT PERSON FOR MORE INFORMATION: 

For further information and to ascertain 

what, if any, matters have been added, 

deleted or postponed, please contact the 

Office of the Secretary at (202) 551– 

5400. 

Dated: June 28, 2018. 

Brent J. Fields, 

Secretary. 

[FR Doc. 2018–14280 Filed 6–28–18; 4:15 pm] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83524; File No. SR– 

NYSEAMER–2018–29] 

Self-Regulatory Organizations; NYSE 

American LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Change To Modify the NYSE American 

Options Fee Schedule 

June 26, 2018 

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 June 11, 

2018, NYSE American LLC (‘‘Exchange’’ 

or ‘‘NYSE American’’) 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 self-regulatory 

organization. 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 modify the 

NYSE American Options Fee Schedule 

(‘‘Fee Schedule’’). The Exchange 

proposes to implement the fee change 

effective June 11, 2018.4 The proposed 

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 purpose of this filing is to modify 

the Fee Schedule, effective June 11, 

2018. Specifically, the Exchange 

proposes to modify certain transaction 

fees. 

Rates To Incentivize Non-Customer, 

Non-Market Maker Volume 

First, the Exchange proposes to 

eliminate the reduced rates available to 

ATP Holders that transact a certain 

amount of Electronic volume as ‘‘NonCustomer, Non-Market Maker’’ (i.e., 

Electronic volume as a Broker-Dealer, 

Firm, Non-NYSE American Market 

Maker, or Professional Customer). 

Currently, an ATP Holder that transacts 

Electronic volume as a Non-Customer, 

Non-Market Maker at least 0.05% above 

that ATP Holder’s 2nd Quarter 2017 

Non-Customer, Non-Market Maker 

Electronic volume is charged $0.36 per 

contract (as opposed to $0.50) for Penny 

Pilot Issues and $0.60 (as opposed to 

$0.75) per contract in Non-Penny Pilot 

Issues.5 The Exchange proposes to 


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