2700 Federal Register / Vol. 83, No. 12 / Thursday, January 18, 2018 / Notices 

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. 

4See Fee Schedule, Section I.C., available here, 

https://www.nyse.com/publicdocs/nyse/markets/ 

american-options/NYSE_American_Options_Fee_

Schedule.pdf (excluding any volumes attributable 

to Mini Options, QCC trades, CUBE Auctions, and 

Strategy Execution Fee Caps, as these transactions 

are subject to separate pricing described in Fee 

Schedule Sections I.B., I.F., I.G., and I.J, 

respectively). The volume thresholds are based on 

a Market Makers’ volume transacted Electronically 

as a percentage of total industry Customer equity 

and Exchange Traded Fund (‘‘ETF’’) options 

volumes (‘‘ADV’’) as reported by the Options 

Clearing Corporation (the ‘‘OCC’’). See OCC 

Monthly Statistics Reports, available here, http://

www.theocc.com/webapps/monthly-volume-reports. 

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–2017–138 and 

should be submitted on or before 

February 8, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.27

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–00721 Filed 1–17–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–82489; File No. SR– 

NYSEAMER–2017–42] 

Self-Regulatory Organizations; NYSE 

American LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Change To Modify the NYSE American 

Options Fee Schedule 

January 11, 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 December 

29, 2017, 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 selfregulatory 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. 

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 

portions of the Fee Schedule, as 

described below, effective January 1, 

2018. 

Market Maker Sliding Scale-Electronic 

(‘‘Sliding Scale’’) 

Section I.C. of the Fee Schedule sets 

forth the Sliding Scale of transaction 

fees charged to NYSE American Options 

Marker [sic] Makers (referred to as 

Market Makers herein), which fees 

decrease upon the Market Maker 

achieving higher monthly volumes.4

Currently, Market Makers that have 

monthly volume on the Exchange of 

0.15% or less of total Industry Customer 

Equity and ETF Option Volume are 

charged a base rate of $0.25 per contract 

and, these same market participants, 

upon reaching certain volume 

thresholds, or Tiers, receive the same 

per contract reduction for volume in 

each respective tier, as set forth in the 

table below. In addition, the Exchange 

charges a lower per contract base rate (of 

$0.23) to Market Makers that participate 

in a Prepayment Program, with lower 

marginal rates applied to volumes in 

successive tiers. 

Tier Market Maker Electronic Monthly Volume as a % of Industry Customer 

Equity and Exchange Traded Fund (‘‘ETF’’) Option Volume 

Rate per 

contract 

Rate per contract if Monthly 

Volume from Posted Volume is 

more than .85% of Total Industry Customer Equity and ETF 

Option Volume or for any NYSE 

American Market Maker participating in a Prepayment Program pursuant to Section I.D. 

1 ..................... 0.00% to 0.15% ............................................................................................... $0.25 $0.23 

2 ..................... >0.15% to 0.60% ............................................................................................. 0.22 0.18 

3 ..................... >0.60% to 1.10% ............................................................................................. 0.14 0.08 

4 ..................... >1.10% to 1.45% ............................................................................................. 0.10 0.05 

5 ..................... >1.45% to 1.80% ............................................................................................. 0.07 0.04 

6 ..................... >1.80% ............................................................................................................ 0.05 0.02 


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5See Fee Schedule, supra note 4, Key Terms and 

Definitions (defining TCADV as ‘‘Total Industry 

Customer equity and ETF option average daily 

volume. TCADV includes OCC calculated Customer 

volume of all types, including Complex Order 

transactions and QCC transactions, in equity and 

ETF options’’). 

6See, e.g., Fee Schedule, supra note 4, Section 

I.A. and I.E. (similarly expressing qualification 

thresholds in terms of percentage of TCADV). 

7For purposes of the Sliding Scale, ‘‘all eligible 

volume that does not remove liquidity’’ would be 

considered non-take volume; whereas any volume 

that removes liquidity would be considered take 

volume. ’’ See proposed Fee Schedule, Section I.C., 

note 1. For example, any Market Maker transaction 

that interacts with resting liquidity is take volume. 

8The Exchange notes that other options 

exchanges similarly differentiate fees based on 

maker-taker activity. See, e.g., MIAX Options fee 

schedule, at p.1, available here, https://

www.miaxoptions.com/sites/default/files/fee_

schedule-files/MIAX_Options_Fee_Schedule_

12012017B.pdf (‘‘Market Maker Sliding Scale’’); 

Cboe Exchange, Inc. fee schedule, at p. 3 available 

here, http://www.cboe.com/publish/feeschedule/ 

CBOEFeeSchedule.pdf (‘‘Liquidity Provider Sliding 

Scale’’). 

9See proposed Fee Schedule, Section I.C. See 

also Fee Schedule, supra note 4, Section I.D. 

(Prepayment Program) (describing the 1- and 3-Year 

Prepayment Programs, including requisite timelines 

for committing and prepaying as well as various 

conditions to opt out of the 3-Year Prepayment 

Program). 10See Securities Exchange Act Release No. 74086 

(January 16, 2015), 80 FR 3701 (January 23, 2015) 

(SR–NYSEMKT–2015–4) (introducing the 

prepayment programs). 11See Securities Exchange Act Release No. 79737 

(January 4, 2016), 82 FR 3052 (January 10, 2017) 

(modifying the description of the Prepayment 

Programs and introducing the Balance of the Year 

program). 12See Fee Schedule, Section I.D (Prepayment 

Programs), supra note 4. 

13See proposed Fee Schedule, Section I.D 

(Prepayment Programs) (deleting all references to 

the 3 Year Prepayment Program, including 

reference to early termination and the ability to opt 

out; and updating references to 1-Year and Balance 

of the Year Prepayment Programs to reflect 2018 

calendar year and other program updates as 

described herein). 

14See proposed Fee Schedule, Section I.D. 

15See Fee Schedule, Section I.E. (American 

Customer Engagement (‘‘ACE’’) Program—Standard 

Options), supra note 4. 

16See proposed Fee Schedule, Section I.D 

(Prepayment Programs) (modifying the description 

of the 1Year Prepayment Programs to remove 

Continued 

* * * * * 

The Exchange proposes to replace the 

current table that describes the Sliding 

Scale with the table below, which 

modifies qualification thresholds and 

associated transaction fees for all 

Electronic Marker [sic] Maker volume: 

Tier Market Maker Electronic ADV as a % of TCADV 

Rate per 

contract for 

Non-Take 

Volume 1

Rate per 

contract for 

Take 

Volume 

Prepayment Program 

Participant Rates 

Rate per 

contract for 

Non-Take 

Volume 1

Rate per 

contract for 

Take 

Volume 

1 ..................... 0.00% to 0.20% ................................................................... $0.25 $0.25 $0.22 $0.24 

2 ..................... >0.20% to 0.65% ................................................................. 0.22 0.24 0.17 0.20 

3 ..................... >0.65% to 1.40% ................................................................. 0.12 0.17 0.08 0.11 

4 ..................... >1.40% to 2.00% ................................................................. 0.09 0.14 0.05 0.08 

5 ..................... >2.00% ................................................................................ 0.06 0.09 0.03 0.06

First, the Exchange proposes to restate 

the volume thresholds in terms of a 

Market Maker’s average daily volume or 

ADV as a percent of the TCADV, a 

defined term,5 which is mathematically 

equivalent to a Market Maker’s monthly 

total volume as a percent of the Industry 

Customer equity and ETF Total Volume. 

This proposed change would add clarity 

and internal consistency to the Fee 

Schedule.6

Second, as shown in the table above, 

the Exchange proposes to: 

• Increase the minimum volume 

necessary to achieve each successive 

Tier; 

• Differentiate the type of volume that 

qualifies for specific rates by applying 

different rates depending on whether 

the Market Maker volume is take or nontake volume; 7 8 and 

• Reduce the number of Tiers from 6 

to 5. 

Third, because the Exchange will be 

offering different rates depending on 

whether volume is make or take, the 

Exchange proposes to eliminate as 

unnecessary the minimum volume 

threshold for posted volume (of 0.85% 

of TCADV) to qualify for a reduced per 

contract rate. The Exchange proposes to 

continue to provide reduced rates to 

Market Makers that participate in the 

Prepayment Program. 

The proposed changes are designed to 

incent Market Makers to transact more 

business on the Exchange, including by 

posting a more meaningful percentage of 

TCADV, executing more take volume, 

and committing to transact a certain 

amount of business on the Exchange by 

enrolling in the Prepayment Program.9

Prepayment Program 

The Exchange also proposes to update 

the Prepayment Programs that it will 

offer beginning in 2018. In January 

2015, the Exchange introduced two 

Prepayment Programs—for a 1- or 3- 

year term—to allow Market Makers to 

prepay a portion of the charges incurred 

for transactions executed on the 

Exchange.10 In 2016, the Exchange 

introduced a ‘‘Balance of the Year’’ 

program that allowed Market Makers to 

commit to prepay a portion of their 

transaction charges for some portion of 

the calendar year, for a maximum of 

three-quarters of the year.11 The terms of 

the current 3-Year, and the subsequently 

modified 1-Year, Prepayment Programs 

terminate at the end of 2017.12 The 

Exchange is proposing to modify the 

Prepayment Programs that it offers 

beginning in 2018 to encourage broader 

participation by Market Maker firms. 

Specifically, the Exchange proposes to 

eliminate reference to the 3 Year 

Prepayment Program, which has 

expired, and to maintain the 1 Year and 

Balance of the Year Prepayment 

Programs, as described below.13

The Exchange proposes to continue to 

offer the 1 Year Prepayment Program, 

without altering any aspects of the 

Program, including offering the same $3 

million prepayment amount as was 

offered for 2017.14 Participants in the 1 

Year Prepayment Program would 

continue to qualify its Affiliated (or 

Appointed) OFP to be eligible to receive 

the enhanced credit(s) under the 

American Customer Engagement 

(‘‘ACE’’) Program, including revised 

credits as proposed herein (and 

discussed further below).15 To enroll in 

the proposed 1 Year Prepayment 

Program, a Market Maker would have to 

notify the Exchange by the last business 

day before the start of the new 

(following) year and remit payment to 

the Exchange by the last business day of 

January the following year (i.e., the year 

in which the prepayments would be 

applied). Thus, any Market Maker that 

would like to participate in the 1 Year 

Prepayment Program for 2018 should 

notify the Exchange of its intent by 

December 29, 2017and remit the $3 

million prepayment by January 31, 

2018.16


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2702 Federal Register / Vol. 83, No. 12 / Thursday, January 18, 2018 / Notices 

reference to a specific calendar year and instead 

maintain requirement [sic] that Market Makers 

would [sic] the Exchange of their commitment to 

the Program by sending an email the Exchange at 

optionsbilling@nyse.com). 

17See id. Similarly, just as with the 1-Year 

Prepayment Program, the Exchange would apply 

the prepayment as a credit against certain charges 

incurred on the Exchange. Once the prepayment 

credit has been exhausted, the Exchange would 

invoice the Market Maker at the appropriate rates. 

In the event that a Market Maker does not conduct 

sufficient activity to exhaust the entirety of their 

prepayment credit within the calendar year, there 

would be no refunds issued for any unused portion 

of their prepayment credit. See id. 

18See id. (providing that Market Makers would be 

required to notify the Exchange of their 

commitment to the Program by sending an email 

the Exchange at optionsbilling@nyse.com). 

19See id. The Exchange notes that after 

introducing fees associated with BOLD transactions 

in 2017, it modified various aspects of the Fee 

Schedule to account for these fees. However, the 

Exchange failed to make clear that payments under 

any of the Prepayment Programs would count 

towards BOLD transactions and seeks to correct this 

oversight with this proposed change. See id. 

20See Fee Schedule, Section I.E., supra note 4. 

The Exchange also proposes to make a grammatical 

change to the second sentence of the introductory 

paragraph by changing the word ‘‘is’’ to ‘‘are,’’ 

which should add clarity to the fee schedule. See 

proposed Fee Schedule, Section I.E. 

21The volume thresholds are based on an OFP’s 

Customer volume transacted Electronically as a 

percentage of TCADV as reported by the OCC. See 

OCC Monthly Statistics Reports, available here, 

http://www.theocc.com/webapps/monthly-volumereports. 

22See proposed Fee Schedule, Section I. E. 

23 15 U.S.C. 78f(b). 

24 15 U.S.C. 78f(b)(4) and (5). 

Next, the Exchange is proposing to 

continue to offer a ‘‘Balance of the Year’’ 

Prepayment Program, without altering 

any material aspects of the Program. The 

Exchange would continue to require the 

following prepayments based on the 

quarter in which a Market Maker joined: 

2nd Quarter 3rd Quarter 4th Quarter 

Prepayment Amount and Payment Schedule ............................................................................. $2,475,000 $1,800,000 $975,000 

Consistent with the current Balance of 

the Year Prepayment Program, a Market 

Maker that participates in the Balance of 

the Year Program would receive a credit 

equal to its prepayment amount (i.e., 

$2,475,000; $1,800,000; or $975,000, 

respectively) toward certain fees it 

incurs on the Exchange.17 As proposed, 

Marker [sic] Makers that enroll in the 

Balance of the Year Program would be 

required to notify the Exchange by the 

last business day before the start of the 

new (following) quarter (e.g., to 

participate for three-quarters of the year, 

notice must be given by the last 

business day of the first quarter of that 

year, etc.).18 In addition, consistent with 

2017, participants must remit payment 

by the last business day in the first 

month of the respective quarter (i.e., the 

quarter in which prepayments will 

begin to apply). However, the Exchange 

proposes to remove reference to specific 

dates, which were tied to prior calendar 

years, to avoid having to revise the Fee 

Schedule on an annual basis. Thus, as 

proposed, the deadlines to participate in 

the Balance of the Year Prepayment 

Program for each quarter would be the 

last business day in April, July and 

October, for the second, third and fourth 

quarter, respectively. 

Finally, the Exchange proposes to 

make clear that any prepayments made 

pursuant to the 1 Year Prepayment 

Program 1 or the Balance of the Year 

Prepayment Program would apply to 

transactions effected using the BOLD 

Mechanism, pursuant to Section I.M. of 

the Fee Schedule.19

American Customer Engagement 

(‘‘ACE’’) Program 

Section I. E. of the Fee Schedule 

describes the Exchange’s ACE Program. 

The ACE Program features a base tier 

and five higher tiers expressed as a 

percentage of TCADV 20 and provides 

two alternative methods by which Order 

Flow Providers (each an ‘‘OFP’’) may 

receive per contract credits for 

Electronic Customer volume that the 

OFP, as agent, submits to the 

Exchange.21 The Exchange is proposing 

to modify certain credits offered in the 

ACE Program. 

First, the Exchange proposes to delete 

the ACE credits for 3 Year Enhanced 

Customer Volume Credits, and any 

references thereto, to reflect that the 3 

Year Prepayment Program has expired, 

as noted above.22 The Exchange believes 

these changes would add clarity, 

transparency and internal consistency to 

the Fee Schedule. 

Next, the Exchange proposes to 

modify the enhanced per contract credit 

applicable to Customer Complex Orders 

for 1 Year and Balance of the Year 

Prepayment Participants. Specially, the 

Exchange proposes to reduce the credit 

for Tier 1 from $0.20 to $0.19 per 

contract, while increasing the per 

contract credit for Tier 4 and 5, from 

$0.21 and $0.23, respectively, to $0.22 

and $0.24, respectively. 

The Exchange also proposes to modify 

the per contract credit applicable to 

Simple Orders on Customer volume for 

Tiers 3, 4 and 5. Specifically, the 

Exchange proposes to reduce the credit 

for Tier 3, 4, and 5 from $0.19, $0.20, 

and $0.22, respectively, to $0.17, $0.19, 

and $0.21, respectively. And, the 

Exchange proposes to increase the 

enhanced per contract credit applied to 

Simple Orders on Customer volume for 

Prepayment participants that qualify for 

Tier 5 from $0.23 to $0.24. 

The proposed changes to credits 

payable on Customer volume are 

intended to encourage ATP Holders and 

their Affiliates and/or Appointed parties 

to participate in the Prepayment 

Programs, while still rewarding OFPs 

that direct significant amounts of 

Customer volume to the Exchange with 

credits on transactions. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,23 in general, and 

furthers the objectives of Sections 

6(b)(4) and (5) of the Act,24 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. 

Sliding Scale 

The Exchange believes that the 

proposed modifications to the Sliding 

Scale are reasonable, equitable and not 

unfairly discriminatory for a number of 

reasons. First, the Sliding Scale is 

available to all Market Makers and is 

based on the amount of business 

transacted on—and is designed to attract 

greater volume to—the Exchange. In 

addition, the elimination of the 

alternative basis to qualify for a reduced 

rate by posting monthly volume of at 

least 0.85% TCADV (if not participating 

in a Prepayment Program) is not 

unfairly discriminatory because Market 

Makers that would like to receive a 

more favorable per contract rate under 

the Sliding Scale have the option to 

commit to one of the Prepayment 

Programs, which commitment increases 

liquidity on the Exchange to the benefit 

of all market participants. Moreover, all 

Market Makers will be subject to the 

proposal to impose differing rates 


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25See MIAX and Cboe fee schedules, supra 

note 8. 

26See id. 

27See, e.g., Cboe fee schedule, supra note 8, at p. 

18, footnote 10 (a market maker may be permitted 

to pay a pro-rated amount of the $2.4 million if, for 

example, they join the program mid-year). 

28See id., Volume Incentive Program, at p. 3 

(offering per contracts credits ranging from $0.09– 

$0.14 for simple orders). 

29 15 U.S.C. 78f(b)(8). 

depending on whether volume is make 

or take volume. The proposed 

adjustments are designed to encourage 

Market Makers to commit to directing 

their order flow to the Exchange, which 

would increase volume and liquidity, to 

the benefit of all market participants by 

providing more trading opportunities 

and tighter spreads. Further, the 

proposed Sliding Scale thresholds and 

rates are competitive with fees charged 

by other exchanges and are designed to 

attract (and compete for) order flow to 

the Exchange, which provides a greater 

opportunity for trading by all market 

participants.25 In addition, the proposed 

changes, which are designed to incent 

market participants to increase the 

orders sent directly to the Exchange, 

should provide liquidity that supports 

the quality of price discovery and 

promotes market transparency to the 

benefit of all market participants. 

Finally, the Exchange notes that other 

exchanges have established transaction 

fees for Market Makers based on maker 

and taker activity.26

Prepayment Program 

The Exchange believes that the 

proposed modifications to the 

Prepayment Programs are reasonable, 

equitable and not unfairly 

discriminatory for a number of reasons. 

First, all of the Prepayment Programs 

offered on the Exchange are optional 

and Market Makers can elect to 

participate (or elect not to participate). 

Given the expiration of the 3 Year 

Prepayment Program, the Exchange 

believes that the goals of the 

Prepayment Program continue to be 

served by continuing to offer the 1 Year 

and Prepayment Program as well as the 

Balance of the Year Program. The 

Exchange believes that continuing to 

offer these Programs would provide 

Market Makers with the flexibility to 

join annually or at various points in the 

year, which may encourage broader 

participation in the Prepayment 

Programs. The Exchange anticipates that 

the potential greater capital 

commitment and resulting liquidity on 

the Exchange would benefit all market 

participants (including non-Market 

Makers). Moreover, the Exchange notes 

that other options exchanges likewise 

offer Prepayment Programs to market 

makers that may be joined after the start 

of the year.27 The Exchange also notes 

that, similar to the Sliding Scale, the 

Prepayment Program is designed to 

incent Market Makers to commit to 

directing their order flow to the 

Exchange, which would benefit all 

market participants by expanding 

liquidity, providing more trading 

opportunities and tighter spreads, even 

to those market participants that are not 

eligible for the Programs. Thus, the 

Exchange believes the Prepayment 

Program, as modified, is reasonable, 

equitable and not unfairly 

discriminatory to others. 

In addition, the Exchange believes 

that the proposal to replace specific 

dates with the term ‘‘last business day’’ 

removes impediments to and perfects 

the mechanism of a free and open 

market by eliminating redundant annual 

rule filings when the Exchange is not 

changing its fees. The Exchange further 

believes that the proposal removes 

impediments to and perfects the 

mechanism of a free and open market by 

reducing potential confusion among 

market participants and the investing 

public who may see a rule filing and 

mistake it for a fee change when in fact 

a fee is not changing. The proposed 

change is also reasonable, equitable and 

not unfairly discriminatory as it is 

designed to add clarity to the Fee 

Schedule to the benefit of all market 

participants. 

The Exchange believes that the 

proposed change to make clear that fees 

associated with BOLD transactions 

would be applied against prepayments 

made under the Balance of the Year 

Program would add clarity, 

transparency and internal consistency to 

the Fee Schedule. 

ACE Program 

The Exchange believes the proposed 

changes to the ACE Program are 

reasonable, equitable and not unfairly 

discriminatory for a number of reasons. 

First, the proposed changes to increase 

three of the credits associated with 

participants in one of the Prepayment 

Programs are designed to incent market 

participants to increase the orders sent 

directly to the Exchange and therefore 

provide liquidity that supports the 

quality of price discovery and promotes 

market transparency to the benefit of all 

market participants. The Exchange 

believes that the proposed fee change 

would directly relate to the activity of 

a Market Maker and the activity of an 

affiliated ATP Holder on the Exchange, 

thereby encouraging increased trading 

activity. The Exchange believes that the 

proposal to amend the credits associated 

with various Tiers of the ACE Program 

is reasonable because it provides ATP 

Holders affiliated with an NYSE 

American Options Market Maker with 

additional incentives to participate in 

the Prepayment Program. The Exchange 

believes that the proposal to slightly 

reduce the credits for Simple Orders not 

associated with participants in one of 

the Prepayment Programs are likewise 

reasonable, equitable and not unfairly 

discriminatory because such credits are 

within the range offered by competing 

options exchanges.28

The Exchange’s proposed grammatical 

change (see supra note 19) is reasonable, 

equitable and not unfairly 

discriminatory as it is designed to add 

clarity to the Fee Schedule 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,29 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 Exchange believes that the 

proposed changes relating to the Sliding 

Scale, the Prepayment Program, and the 

ACE Program may increase both 

intermarket and intramarket 

competition by incenting participants to 

direct their orders to the Exchange, 

which would enhance the quality of 

quoting and may increase the volume of 

contracts traded on the Exchange. To 

the extent that there is an additional 

competitive burden on non-NYSE 

American Market Makers, the Exchange 

believes that this is appropriate because 

Market Makers have heightened 

obligations that other market 

participants do not and the proposal 

should incent market participants to 

direct additional order flow to the 

Exchange, and thus provide additional 

liquidity that enhances the quality of its 

markets and increases the volume of 

contracts traded here. To the extent that 

this purpose is achieved, all of the 

Exchange’s market participants should 

benefit from the improved market 

liquidity. Enhanced market quality and 

increased transaction volume that 

results from the anticipated increase in 

order flow directed to the Exchange will 

benefit all market participants and 

improve competition on the Exchange. 

Given the robust competition for 

volume among options markets, many of 

which offer the same products, 

implementing programs to attract order 

flow similar to the ones being proposed 

in this filing, are consistent with the 

above-mentioned goals of the Act. The 


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2704 Federal Register / Vol. 83, No. 12 / Thursday, January 18, 2018 / Notices 

30 15 U.S.C. 78s(b)(3)(A). 

31 17 CFR 240.19b–4(f)(2). 

32 15 U.S.C. 78s(b)(2)(B). 33 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

Exchange notes that it operates in a 

highly competitive market in which 

market participants can readily favor 

competing venues. In such an 

environment, the Exchange must 

continually review, and consider 

adjusting, its fees and credits to remain 

competitive with other exchanges. For 

the reasons described above, the 

Exchange believes that the proposed 

rule change reflects this competitive 

environment. 

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) 30 of the Act and 

subparagraph (f)(2) of Rule 19b–4 31

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) 32 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: 

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–2017–42 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–2017–42. 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–2017–42 and 

should be submitted on or before 

February 8, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.33

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–00723 Filed 1–17–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–82484; File No. SR– 

CboeBZX–2018–001] 

Self-Regulatory Organizations; Cboe 

BZX Exchange, Inc.; Notice of Filing of 

a Proposed Rule Change To List and 

Trade Shares of the GraniteShares 

Bitcoin ETF and the GraniteShares 

Short Bitcoin ETF, a Series of the 

GraniteShares ETP Trust, Under Rule 

14.11(f)(4), Trust Issued Receipts 

January 11, 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 January 5, 

2018, Cboe BZX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BZX’’) 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 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 filed a proposal to list 

and trade shares of the GraniteShares 

Bitcoin ETF and the GraniteShares 

Short Bitcoin ETF (each a ‘‘Fund’’ and, 

collectively, the ‘‘Funds’’), a series of 

the GraniteShares ETP Trust (the 

‘‘Trust’’), under Rule 14.11(f)(4) (‘‘Trust 

Issued Receipts’’). The shares of the 

Funds are referred to herein as the 

‘‘Shares.’’ 

The text of the proposed rule change 

is available at the Exchange’s website at 

www.markets.cboe.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 

Exchange 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 

Exchange has prepared summaries, set 

forth in Sections A, B, and C below, of 

the most significant parts of such 

statements. 


sradovich on DSK3GMQ082PROD with NOTICES