5802 Federal Register / Vol. 81, No. 22 / Wednesday, February 3, 2016 / Notices 

11 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. 56251 

(August 14, 2007), 72 FR 46523 (August 20, 2007) 

(SR–Amex–2004–27) (Order approving listing of 

Fixed Return Options (‘‘FROs’’)); see also Securities 

Exchange Act Release No. 71957 (April 16, 2014), 

79 FR 22563 (April 22, 2014) (SR–NYSEMKT– 

2014–06) (Order approving name change from FROs 

to Binary Return Derivatives (ByRDs) and re-launch 

of these products, with certain modification, and 

amending Obvious Errors rules to include ByRDs). 

ByRDs are European-style option contracts on 

individual stocks, exchange-traded funds and 

Index-Linked Securities that have a fixed return in 

cash based on a set strike price; satisfy specified 

listing criteria; and may only be exercised at 

expiration pursuant to the Rules of the Options 

Clearing Corporation. See, e.g., NYSE MKT Rule 

900ByRDs. 

5Each Specialist must be registered with the 

Exchange as a Market Maker and is thus subject to 

the quoting requirements imposed on Market 

Makers. See, e.g., Rules 920NY, 925.1NY(b) and 

927NY. 6See proposed Section I.H. of the Fee Schedule, 

which was previously Reserved. 7 15 U.S.C. 78f(b). 

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

9See supra n. 5. 

10 In determining the $335 fee, the Exchange 

considered factors such as systems upgrades and 

additional data feeds that may be necessary to act 

as a Specialist in ByRDS. 

11See Exchange Act Release No. 34–60536 

(August 19, 2009), 74 FR 43204 (August 26, 2009) 

(SR–ISE–2009–59). 

12 15 U.S.C. 78f(b)(8). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2016–01929 Filed 2–2–16; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–76992; File No. SR– 

NYSEMKT–2016–10] 

Self-Regulatory Organizations; NYSE 

MKT LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Change Modifying the NYSE Amex 

Options Fee Schedule To Add an Early 

Adopter Specialist Credit 

January 28, 2016. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on January 

20, 2016, NYSE MKT LLC (the 

‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with 

the Securities and Exchange 

Commission (the ‘‘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 the Substance 

of the Proposed Rule Change 

The Exchange proposes to modify the 

NYSE Amex Options Fee Schedule 

(‘‘Fee Schedule’’). The Exchange 

proposes to implement the fee change 

effective February 1, 2016. The 

proposed change is available on the 

Exchange’s Web site at www.nyse.com, 

at the principal office of the Exchange, 

and at the Commission’s Public 

Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

self-regulatory organization included 

statements concerning the purpose of, 

and basis for, the proposed rule change 

and discussed any comments it received 

on the proposed rule change. The text 

of those statements may be examined at 

the places specified in Item IV below. 

The Exchange has prepared summaries, 

set forth in sections A, B, and C below, 

of the most significant parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of this filing is to 

implement a monthly credit available to 

Specialists to promote trading in Binary 

Return Derivatives (‘‘ByRDs’’),4 which is 

a new product that the Exchange 

anticipates launching in February 2016. 

To encourage trading of ByRDs, the 

Exchange proposes to offer an incentive 

to Specialists appointed to trade 

ByRDs.5 Specialists that are appointed 

in ByRDs and eligible for the incentive 

payment would be known on the 

Exchange’s Fee Schedule as ‘‘Early 

Adopter Specialists.’’ Specifically, 

effective February 1, 2016, the Exchange 

proposes to offer each ‘‘Early Adopter 

Specialist’’ a monthly credit of $335 for 

each class of ByRDs for which that 

Specialist is appointed, which the 

Exchange believes would provide a 

competitive incentive to Specialists 

based on market conditions and 

competing interests for technology.6 The 

Exchange believes the proposed 

incentive payment would further the 

Exchange’s goal of introducing new 

products to the marketplace by 

encouraging Specialists to make a 

market for these products. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,7 in general, and 

furthers the objectives of Sections 

6(b)(4) and (5) of the Act,8 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 monthly credit is reasonable, 

equitable and not unfairly 

discriminatory for the following 

reasons. First, the proposed credit 

would generate additional order flow to 

the Exchange by creating incentives to 

quote and trade ByRDs options, which 

would benefit all market participants 

even those not eligible to receive the 

credit. The Exchange believes it is 

appropriate to offer the credit to 

Specialists (and not to other types of 

Market Makers) as the Specialists are 

subject to heightened continuous 

quoting obligations, which exceed those 

imposed on other Market Makers.9 The 

Exchange believes the proposed credit 

would recognize the contributions of 

each Early Adopter Specialist to the 

trading environment on the Exchange 

and is designed to attract Specialists 

willing to seek appointments in and, 

thus provide continuous quotes in, 

ByRDs options, which increase in the 

availability of ByRDs options would 

benefit all market participants. 

In addition, the Exchange has 

evaluated the market conditions, 

including the technology needs of 

Specialists appointed to options on 

ByRDs and believes the proposed 

monthly credit of $335 is reasonable, 

equitable and not unfairly 

discriminatory.10 The Exchange notes 

that offering market participants 

incentives to trade in certain newly 

offered products is not new of novel.11

For these 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,12 the Exchange does not believe 

that the proposed rule change will 

impose any burden on competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act. 

The Exchange believes the proposed 

incentive is pro-competitive as it would 

further the Exchange’s goal of 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 81, No. 22 / Wednesday, February 3, 2016 / Notices 5803 

13See supra n. 5. 

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). 

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. 

introducing new products to the 

marketplace and encouraging 

Specialists to make a market in these 

products, which would in turn, benefit 

market participants. 

To the extent that there is an 

additional competitive burden on 

market participants that are not eligible 

for the credit (i.e., non-Specialists), the 

Exchange believes that this is 

appropriate because the proposal would 

incent Specialists to quote and trade in 

options on ByRDs which would 

enhance the quality of the Exchange’s 

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. 

Moreover, the Exchange believes it is 

appropriate to offer the credit to 

Specialists (and not to other types of 

Market Makers) as Specialists are 

subject to heightened continuous 

quoting obligations that exceed those 

required of other Market Makers.13

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: 

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– 

NYSEMKT–2016–10 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–NYSEMKT–2016–10. 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 Web site (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 Web site 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; 

the Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR– 

NYSEMKT–2016–10, and should be 

submitted on or before February 24, 

2016. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2016–01928 Filed 2–2–16; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–76996; File No. SR– 

NYSEMKT–2016–12] 

Self-Regulatory Organizations; NYSE 

MKT LLC; Notice of Filing of Proposed 

Rule Change Amending the NYSE MKT 

Company Guide To Create a New 

Section 146 Under Which a Certain 

Category of Newly Listed Issuers 

Would Be Entitled To Receive 

Complimentary Products and Services 

From the Exchange 

January 28, 2016. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on January 

14, 2016, NYSE MKT LLC (the 

‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with 

the Securities and Exchange 

Commission (the ‘‘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 amend the 

NYSE MKT Company Guide (the 

‘‘Company Guide’’) to create a new 

Section 146 under which a certain 

category of newly listed issuers would 

be entitled to receive complimentary 

products and services from the 

Exchange. The proposed rule change is 

available on the Exchange’s Web site 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, 

mstockstill on DSK4VPTVN1PROD with NOTICES