39466 Federal Register / Vol. 82, No. 159 / Friday, August 18, 2017 / Notices 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 80913 

(June 13, 2017), 82 FR 27907 (June 19, 2017) (SR– 

CBOE–2017–048). 

4See IM–5050–1(b). 

5The Exchange notes that IVV is treated as an 

Index-Linked Security under current Exchange 

rules. 

date, and the authority cited by the 

Postal Service for each request. For each 

request, the Commission appoints an 

officer of the Commission to represent 

the interests of the general public in the 

proceeding, pursuant to 39 U.S.C. 505 

(Public Representative). Section II also 

establishes comment deadline(s) 

pertaining to each request. 

The public portions of the Postal 

Service’s request(s) can be accessed via 

the Commission’s Web site (http://

www.prc.gov). Non-public portions of 

the Postal Service’s request(s), if any, 

can be accessed through compliance 

with the requirements of 39 CFR 

3007.40. 

The Commission invites comments on 

whether the Postal Service’s request(s) 

in the captioned docket(s) are consistent 

with the policies of title 39. For 

request(s) that the Postal Service states 

concern market dominant product(s), 

applicable statutory and regulatory 

requirements include 39 U.S.C. 3622, 39 

U.S.C. 3642, 39 CFR part 3010, and 39 

CFR part 3020, subpart B. For request(s) 

that the Postal Service states concern 

competitive product(s), applicable 

statutory and regulatory requirements 

include 39 U.S.C. 3632, 39 U.S.C. 3633, 

39 U.S.C. 3642, 39 CFR part 3015, and 

39 CFR part 3020, subpart B. Comment 

deadline(s) for each request appear in 

section II. 

II. Docketed Proceeding(s) 

1. Docket No(s).: CP2017–263; Filing 

Title: Notice of United States Postal 

Service of Filing a Functionally 

Equivalent Global Expedited Package 

Services 7 Negotiated Service 

Agreement and Application for NonPublic Treatment of Materials Filed 

Under Seal; Filing Acceptance Date: 

August 14, 2017; Filing Authority: 39 

CFR 3015.5; Public Representative: 

Kenneth R. Moeller; Comments Due: 

August 22, 2017. 

2. Docket No(s).: CP2017–264; Filing 

Title: Notice of United States Postal 

Service of Filing a Functionally 

Equivalent Global Expedited Package 

Services 7 Negotiated Service 

Agreement and Application for NonPublic Treatment of Materials Filed 

Under Seal; Filing Acceptance Date: 

August 14, 2017; Filing Authority: 39 

CFR 3015.5; Public Representative: 

Kenneth R. Moeller; Comments Due: 

August 22, 2017. 

This notice will be published in the 

Federal Register. 

Stacy L. Ruble, 

Secretary. 

[FR Doc. 2017–17492 Filed 8–17–17; 8:45 am] 

BILLING CODE 7710–FW–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81391; File No. SR–BOX– 

2017–27] 

Self-Regulatory Organizations; BOX 

Options Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change To Amend 

BOX Rule 5050 (Series of Options 

Contracts Open for Trading), IM–5050– 

1, To Include the iShares S&P 500 

Index ETF in the List of ExchangeTraded Funds Eligible for $1 Strike 

Price Intervals 

August 14, 2017. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on August 

10, 2017, BOX Options Exchange LLC 

(‘‘BOX’’ or 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 Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

BOX Rule 5050 (Series of Options 

Contracts Open for Trading), IM–5050– 

1, to include the iShares S&P 500 Index 

ETF (‘‘IVV’’) in the list of ExchangeTraded Funds (‘‘ETFs’’) that are eligible 

for $1 strike price intervals. 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 Web site at http://

boxexchange.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 5050 (Series of Options 

Contracts Open for Trading), to modify 

the strike setting regime for IVV options 

by including IVV in the list of ETFs that 

are eligible for $1 strike price intervals 

under IM–5050–1(b). This is a 

competitive filing that is based on an 

immediately effective filing recently 

submitted by the Chicago Board Options 

Exchange, Incorporated (‘‘CBOE’’).3

Specifically, the Exchange proposes to 

modify the interval setting regime for 

IVV options to allow $1 strike price 

intervals above $200. The Exchange 

believes that the proposed rule change 

would make IVV options easier for 

investors and traders to use and more 

tailored to their investment needs. 

Additionally, the interval setting regime 

the Exchange proposes to apply to IVV 

options is currently applied to options 

on units of the Standard & Poor’s 

Depository Receipts Trust (‘‘SPY’’),4

which is an ETF that is identical in all 

material respects to the IVV ETF. 

The SPY and IVV ETFs are identical 

in all material respects. The SPY and 

IVV ETFs are designed to roughly track 

the performance of the S&P 500 Index 

with the price of SPY and IVV designed 

to roughly approximate 1/10th of the 

price of the S&P 500 Index. 

Accordingly, SPY and IVV strike prices 

having a multiplier of $100 reflect a 

value roughly equal to 1/10th of the 

value of the S&P 500 Index. For 

example, if the S&P 500 Index is at 

1972.56, SPY and IVV options might 

have a value of approximately 197.26 

with a notional value of $19,726. In 

general, SPY and IVV options provide 

retail investors and traders with the 

benefit of trading the broad market in a 

manageably sized contract. As options 

with an ETF underlying, SPY and IVV 

options are listed in the same manner as 

equity options under the Rules. 

However, under current IM–5050– 

1(d), the interval between strike prices 

in series of options on Index-Linked 

Securities,5 as defined in Rule 5020(k), 

will be $1 or greater where the strike 

price is $200 or less and $5 or greater 

where the strike price is greater than 

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Federal Register / Vol. 82, No. 159 / Friday, August 18, 2017 / Notices 39467 

6See IM–5050–1(b). 

7 15 U.S.C. 78f(b). 

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

9 Id. 

$200. In addition, under IM–5050– 

6(b)(5), 

The interval between strike prices on Short 

Term Option Series may be (i) $0.50 or 

greater where the strike price is less than 

$100, and $1 or greater where the strike price 

is between $100 and $150 for all option 

classes that participate in the Short Term 

Options Series Program; (ii) $0.50 for option 

classes that trade in one dollar increments in 

Related non-short Term Options and are in 

the Short Term Option Series Program; or 

(iii) $2.50 or greater where the strike price is 

above $150. During the month prior to 

expiration of an option class that is selected 

for the Short Term Option Series Program 

pursuant to this rule (Short Term Option), 

the strike price intervals for the related nonShort Term Option shall be the same as the 

strike price intervals for the Short Term 

Option. 

The Exchange’s proposal seeks to 

narrow the strike price intervals to $1 

for IVV options above $200, in effect 

matching the strike setting regime for 

strike intervals in IVV options below 

$200 and matching the strike setting 

regime applied to SPY options. 

Currently, the S&P 500 Index is above 

2000. The S&P 500 Index is widely 

regarded as the best single gauge of large 

cap U.S. equities and is widely quoted 

as an indicator of stock prices and 

investor confidence in the securities 

market. As a result, individual investors 

often use S&P 500 Index-related 

products to diversify their portfolios 

and benefit from market trends. 

Accordingly, the Exchange believes that 

offering a wider range of S&P 500 Indexbased option strikes affords traders and 

investors important hedging and trading 

opportunities. The Exchange believes 

that not having the proposed $1 strike 

price intervals above $200 in IVV 

significantly constricts investors’ 

hedging and trading possibilities. 

The Exchange proposes to amend IM– 

5050–1(b) to allow IVV options to trade 

in $1 increments above a strike price of 

$200. Specifically, the Exchange 

proposes to amend IM–5050–1(b) to 

state that, ‘‘[n]otwithstanding any other 

provision regarding the interval of strike 

prices of series of options on ExchangeTraded Fund Shares in this rule, the 

interval of strike prices on SPDR S&P 

500 ETF (‘‘SPY’’), iShares S&P 500 

Index ETF (‘‘IVV’’), and the SPDR Dow 

Jones Industrial Average ETF (‘‘DIA’’) 

options will be $1 or greater.’’ The 

Exchange believes that by having 

smaller strike intervals in IVV, investors 

would have more efficient hedging and 

trading opportunities due to the lower 

$1 interval ascension. The proposed $1 

intervals, particularly above the $200 

strike price, will result in having at-themoney series based upon the underlying 

moving less than 1%. The Exchange 

believes that the proposed strike setting 

regime is in line with the slower 

movements of broad-based indices. 

Furthermore, the proposed $1 intervals 

would allow option trading strategies 

(such as, for example, risk reduction/ 

hedging strategies using IVV weekly 

options), to remain viable. Considering 

the fact that $1 intervals already exist 

below the $200 price point and that IVV 

is above the $200 level, the Exchange 

believes that continuing to maintain the 

artificial $200 level (above which 

intervals increase 500% to $5), would 

have a negative effect on investing, 

trading and hedging opportunities, and 

volume. The Exchange believes that the 

investing, trading, and hedging 

opportunities available with IVV 

options far outweighs any potential 

negative impact of allowing IVV options 

to trade in more finely tailored intervals 

above the $200 price point. 

The proposed strike setting regime 

would permit strikes to be set to more 

closely reflect values in the underlying 

S&P 500 Index and allow investors and 

traders to roll open positions from a 

lower strike to a higher strike in 

conjunction with the price movement of 

the underlying. Under the current rule, 

where the next higher available series 

would be $5 away above a $200 strike 

price, the ability to roll such positions 

is effectively negated. Accordingly, to 

move a position from a $200 strike to a 

$205 strike under the current rule, an 

investor would need for the underlying 

product to move 2.5%, and would not 

be able to execute a roll up until such 

a large movement occurred. With the 

proposed rule change, however, the 

investor would be in a significantly 

safer position of being able to roll his 

open options position from a $200 to a 

$201 strike price, which is only a 0.5% 

move for the underlying. The proposed 

rule change will allow the Exchange to 

better respond to customer demand for 

IVV strike prices more precisely aligned 

with current S&P 500 Index values. The 

Exchange believes that the proposed 

rule change, like the other strike price 

programs currently offered by the 

Exchange, will benefit investors by 

providing investors the flexibility to 

more closely tailor their investment and 

hedging decisions using IVV options. 

By allowing series of IVV options to 

be listed in $1 intervals between strike 

prices over $200, the proposal will 

moderately augment the potential total 

number of option series available on the 

Exchange. However, the Exchange 

believes it and the Options Price 

Reporting Authority (‘‘OPRA’’) have the 

necessary systems capacity to handle 

any potential additional traffic 

associated with this proposed rule 

change. The Exchange also believes that 

Participants will not have a capacity 

issue due to the proposed rule change. 

In addition, the Exchange represents 

that it does not believe that this 

expansion will cause fragmentation of 

liquidity. 

In addition, the interval setting regime 

the Exchange proposes to apply to IVV 

options is currently applied to options 

on SPY 6 7 [sic] which is an ETF that is 

identical in all material respects to the 

IVV ETF. 

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’’),7 in general, and Section 6(b)(5) 

of the Act,8 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. Additionally, the 

Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 9 requirement that the rules of an 

exchange not be designed to permit 

unfair discrimination between 

customers, issuers, brokers, or dealers. 

In particular, the proposed rule 

change will allow investors to more 

easily use IVV options. Moreover, the 

proposed rule change would allow 

investors to better trade and hedge 

positions in IVV options where the 

strike price is greater than $200, and 

ensure that IVV options investors are 

not at a disadvantage simply because of 

the strike price. 

The Exchange also believes the 

proposed rule change is consistent with 

Section 6(b)(1) of the Act, which 

provides that the Exchange be organized 

and have the capacity to be able to carry 

out the purposes of the Act and the 

rules and regulations thereunder, and 

the rules of the Exchange. The rule 

change proposal allows the Exchange to 

respond to customer demand to allow 

IVV options to trade in $1 intervals 

above a $200 strike price. The Exchange 

does not believe that the proposed rule 

would create additional capacity issues 

or affect market functionality. 

mstockstill on DSK30JT082PROD with NOTICES

39468 Federal Register / Vol. 82, No. 159 / Friday, August 18, 2017 / Notices 

10See Nasdaq Phlx Rule 1012.05(a)(iv)(C) and 

CBOE Rule 5.5.08(b). 

11See IM–5050–1(b). 

12 Id. 

13 15 U.S.C. 78s(b)(3)(A). 

14 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

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

the Commission written notice of its intent to file 

the proposed rule change, along with a brief 

description and the 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. 

15 17 CFR 240.19b–4(f)(6). 

16 17 CFR 240.19b–4(f)(6)(iii). 

17See supra note 3. 

18See supra note 10. See also Miami International 

Securities Exchange, LLC Rule 404, Interpretations 

and Policies .10; The Nasdaq Options Market LLC 

Rules, Chapter IV, Section 6, Supplementary 

Material .01(c). 

19For purposes only of waiving the 30-day 

operative delay, the Commission has also 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

As noted above, some ETF options 

trade in wider $5 intervals above a $200 

strike price, whereby options at or 

below a $200 strike price trade in $1 

intervals. This creates a situation where 

contracts on the same option class 

effectively may not be able to execute 

certain strategies such as, for example, 

rolling to a higher strike price, simply 

because of the arbitrary $200 strike price 

above which options intervals increase 

by 500%. This proposal remedies this 

situation by establishing an exception to 

the current interval regime for IVV 

options to allow such options to trade 

in $1 or greater intervals at all strike 

prices. 

The Exchange believes that the 

proposed rule change, like other strike 

price programs currently offered by the 

Exchange, will benefit investors by 

giving them increased flexibility to more 

closely tailor their investment and 

hedging decisions. Moreover, the 

proposed rule change is consistent with 

the rules of other exchanges.10

With regard to the impact of this 

proposal on system capacity, the 

Exchange believes it and OPRA have the 

necessary systems capacity to handle 

any potential additional traffic 

associated with this proposed rule 

change. The Exchange believes that its 

Members will not have a capacity issue 

as a result of this proposal. In addition, 

the interval setting regime the Exchange 

proposes to apply to IVV options is 

currently applied to options on SPY,11

which is an ETF that is identical in all 

material respects to the IVV ETF. 

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. Rather, the 

Exchange believes that the proposed 

rule change will result in additional 

investment options and opportunities to 

achieve the investment and trading 

objectives of market participants seeking 

efficient trading and hedging vehicles, 

to the benefit of investors, market 

participant, and the marketplace in 

general. Specifically, the Exchange 

believes that IVV options investors and 

traders will significantly benefit from 

the availability of finer strike price 

intervals above a $200 price point. In 

addition, the interval setting regime the 

Exchange proposes to apply to IVV 

options is currently applied to options 

on SPY,12 which is an ETF that is 

identical in all material respects to the 

IVV ETF. Thus, applying the same strike 

setting regime to SPY and IVV options 

will help level the playing field for 

options on similar, competing ETFs. 

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 

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, the 

proposed rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 13 and Rule 19b–4(f)(6) 

thereunder.14

A proposed rule change filed 

pursuant to Rule 19b–4(f)(6) under the 

Act 15 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6)(iii) 16

permits the Commission to designate a 

shorter time if such action is consistent 

with the protection of investors and the 

public interest. The Exchange has asked 

the Commission to waive the 30-day 

operative delay because this proposal 

permits listing IVV options in a manner 

permitted by the Chicago Board Options 

Exchange, Incorporated,17 and will 

provide investors with an alternative 

venue for trading IVV options. The 

Commission also notes that the 

proposed rule change is consistent with 

the strike price intervals in IVV options 

that is permitted on other exchanges 

and thus raises no new novel or 

substantive issues.18 Accordingly, the 

Commission hereby waives the 

operative delay and designates the 

proposal operative upon filing.19

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 

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– 

BOX–2017–27 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–BOX–2017–27. 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 

mstockstill on DSK30JT082PROD with NOTICES

Federal Register / Vol. 82, No. 159 / Friday, August 18, 2017 / Notices 39469 

20 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. 

4On July 24, 2017, the Exchange’s affiliate, NYSE 

MKT LLC, transitioned to the Pillar trading 

platform and has been renamed NYSE American 

LLC. See Securities Exchange Act Release Nos. 

79242 (November 4, 2016), 81 FR 79081 (November 

10, 2016) (SR–NYSEMKT–2016–97); 79400 

(November 25, 2016), 81 FR 86750 (December 1, 

2016) (SR–NYSEMKT–2016–103); 80283 (March 21, 

2017), 82 FR 15244 (March 27, 2017) (SR– 

NYSEMKT–2017–14); and 80748 (May 23, 2017), 82 

FR 24764 (May 30, 2017) (SR–NYSEMKT–2017–20). 

5The Exchange originally filed to amend the Fee 

Schedule on July 24, 2017 (SR–NYSEArca-2017–81) 

and withdrew such filing on August 4, 2017. 

6See Securities Exchange Act Release No. 81228 

(July 27, 2017), 82 FR 36012 (August 2, 2017) (SR– 

NYSEMKT–2017–43) (the ‘‘NYSE American Fee 

Filing’’). 

7A PO order is a Market or Limit Order that on 

arrival is routed directly to the primary listing 

market without being assigned a working time or 

interacting with interest on the NYSE Arca Book. 

See Rule 7.31(f)(1). 

8The Exchange transitioned to the Pillar trading 

platform in 2016 and on Pillar, the PO+ modifier 

in the Exchange’s rules was replaced with the 

Primary Only Day/IOC Order, which is a Primary 

Only Order designated Day or IOC, as provided in 

current Rule 7.31(f)(1(B). See Securities Exchange 

Act Release No. 76267 (October 26, 2015), 80 FR 

66951 (October 30, 2015) (SR–NYSEArca-2015–56). 

A Primary Only Order designated Day functions 

similar to what was a PO+ Order. Therefore, to 

promote clarity to the Fee Schedule and avoid any 

confusion, the Exchange proposes to remove 

reference to PO+ Orders from the Fee Schedule. 

9The Exchange notes that orders that are routed 

to NYSE American will be displayed on that 

exchange. PO Orders do not provide ETP Holders 

the ability to add non-displayed liquidity to away 

markets. 

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–BOX– 

2017–27 and should be submitted on or 

before September 8, 2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.20

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–17436 Filed 8–17–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81392; File No. SR– 

NYSEARCA–2017–89] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend the NYSE Arca 

Equities Schedule of Fees and 

Charges for Exchange Services To 

Modify the Fees and Credits for 

Routing Certain Orders to NYSE 

American LLC 

August 14, 2017. 

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 August 

4, 2017, NYSE Arca, Inc. (the 

‘‘Exchange’’ or ‘‘NYSE Arca’’) 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 Arca Equities Schedule of Fees 

and Charges for Exchange Services 

(‘‘Fee Schedule’’) to modify the fees and 

credits for routing certain orders to 

NYSE American LLC (‘‘NYSE 

American’’).4 The Exchange also 

proposes to make non-substantive 

changes to the Fee Schedule in 

connection with the name change of its 

affiliate NYSE MKT LLC to NYSE 

American LLC. The Exchange proposes 

to implement the changes effective 

August 4, 2017.5 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, 

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 Exchange proposes to amend the 

Fee Schedule to modify the fees and 

credits for routing certain orders to the 

NYSE American. The Exchange also 

proposes to make non-substantive 

changes to the Fee Schedule in 

connection with the name change of its 

affiliate NYSE MKT LLC to NYSE 

American LLC. 

In a recent rule filing, NYSE 

American proposed to modify its fee 

schedule for equities transactions, 

including changes to the rates for 

providing liquidity and for executions 

that occur in the opening and closing 

auction.6 The Exchange’s current credits 

for routing orders to NYSE American are 

closely related to the NYSE American’s 

rates, including the rates for providing 

liquidity, and the Exchange is proposing 

an adjustment to its rates to remain 

competitive with the rates of NYSE 

American. Specifically, for Tier 1 and 

Tier 2 PO 7 and PO+ 8 Orders, the 

Exchange currently provides a credit of 

$0.0016 per share for orders that are 

routed to NYSE American that provide 

liquidity to the NYSE American order 

book, which is equal to the NYSE 

American rebate for execution of 

customer orders that add liquidity to 

NYSE American. 

A PO Order is designed to route to the 

primary listing market of the security 

underlying the order (i.e., NYSE, 

NASDAQ, etc.) immediately upon 

arrival and the order therefore does not 

rest on the Exchange’s order book. 

Because such orders do not rest on the 

Exchange’s book, the Exchange charges 

fees or provides credits for those orders 

based on the fees or credits of the 

destination primary listing market, 

which are the fees and credits that the 

Exchange is charged by the primary 

listing market that receives the order. In 

the NYSE American Fee Filing, NYSE 

American proposed to not charge a fee 

or provide a credit for executions of 

displayed orders that provide liquidity 

on that exchange.9 Accordingly, the 

Exchange is proposing to amend the 

rates for routing Tier 1 and Tier 2 PO 

Orders to NYSE American to reflect the 

rates proposed by NYSE American. As 

proposed, there will be no credit for 

such orders routed to NYSE American 

that provide liquidity to the NYSE 

American book. 

The Exchange proposes to make 

corresponding changes to the Basic Rate 

pricing section of the Fee Schedule. 

Additionally, in the NYSE American 

Fee Filing, NYSE American proposed to 

charge a fee of $0.0005 per share for 

executions at the open or close. 

mstockstill on DSK30JT082PROD with NOTICES