Federal Register / Vol. 82, No. 161 / Tuesday, August 22, 2017 / Notices 39921 

9See Footnote 6, infra. [sic] 

10 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. 

listed issuers with additional time to 

ensure that they have adequate 

compliance systems in place furthers 

the protection of investors and the 

public interest because it will enhance 

investor confidence that listed issuers 

are complying with Exchange rules. 

For these reasons, Nasdaq believes the 

proposed rule change is consistent with 

the requirements of Section 6(b)(5) of 

the Act. 

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, as amended. 

The Exchange believes that the 

proposed rule change will facilitate 

listed issuer ability to monitor and 

evidence compliance with approved 

continued listing rules by providing 

issuers with additional time to develop 

and test their internal systems and 

procedures prior to the implementation 

date. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange received a copy of a 

letter from the Investment Company 

Institute, on behalf of listed ETP issuers, 

to the SEC.9 As described in Item 3 [sic], 

above, the Investment Company 

Institute detailed challenges that listed 

ETP issuers are facing in developing 

compliance systems to address the 

amendments contained in the Proposed 

Rule Change and have requested that 

the implementation date for such 

amendments be extended to July 1, 

2018. 

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 

such 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. 

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– 

NASDAQ–2017–081 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–NASDAQ–2017–081. 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 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; 

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– 

NASDAQ–2017–081 and should be 

submitted on or before September 12, 

2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–17682 Filed 8–21–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81408; File No. SR– 

NYSEAMER–2017–04] 

Self-Regulatory Organizations; NYSE 

American LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Modify the NYSE 

American Options Fee Schedule 

August 16, 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 

1, 2017, NYSE American LLC (the 

‘‘Exchange’’ or ‘‘NYSE American’’) 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 American Options Fee Schedule 

(‘‘Fee Schedule’’). The Exchange 

proposes to implement the fee change 

effective August 1, 2017. 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, 


sradovich on DSK3GMQ082PROD with NOTICES
39922 Federal Register / Vol. 82, No. 161 / Tuesday, August 22, 2017 / Notices 

4See, e.g., MIAX Options Exchange (‘‘MIAX’’) fee 

schedule, available here, https://www.

miaxoptions.com/sites/default/files/fee_schedulefiles/MIAX_Options_Fee_Schedule_06302017.pdf 

(charging $0.47 per contract for electronic 

executions in Penny Pilot Issues that clear in the 

Firm range); NASDAQ PHLX LLC (‘‘PHLX’’) Pricing 

Schedule, available here, http://

www.nasdaqtrader.com/Micro.aspx?id=phlxpricing 

(charging $0.48 per contract for electronic 

executions in Penny Pilot Issues that clear in the 

Firm range). 

5See proposed note 8 to Section I.A. (Options 

Transactions and Credits, Rates for Options 

transactions) of the Fee Schedule. The Exchange 

notes that executions via the BOLD Mechanism 

would be included in the TCADV calculation. 

6Currently, the Exchange charges ATP Holders 

transacting Non-Customer/Non-Market Maker 

Interest (excluding Firms) a per contract rate of 

$0.50 per contract for Penny Pilot Issues, and $0.75 

per contract for Non-Penny Pilot Issues. The 

Exchange does not propose to alter these base rates. 

7See supra note 4, MIAX fee schedule, Section 

(1)(a)(iv) (providing a per contract credit for certain 

orders executed on the exchange, provided the 

Member achieves certain ‘‘Professional’’ volume 

increase percentage thresholds in the month 

relative to a baseline period, which credits result in 

a per-contract rates [sic] similar to the Exchange’s 

proposal). MIAX similarly excludes from this 

calculation certain volumes, including executions 

in price improvement auctions, QCCs, as well as 

Routed Volume. The following are considered 

‘‘Professional’’ interest on MIAX: Public Customers, 

that are not Priority Customers; non-MIAX Options 

Market Makers; non-Member Broker-Dealers; or 

Firms. 

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

9 15 U.S.C. 78f(b)(4) and (5). 

10See supra note 4. 

11 15 U.S.C. 78f(b)(8). 

12See supra note 4. 

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 amend 

the Fee Schedule effective August 1, 

2017. Specifically, the Exchange 

proposes to modify the fees for Firm 

Electronic transactions in Penny Pilot 

issues, and to offer an incentive for ATP 

Holders to electronically transact 

business of Broker-Dealers, Firms, NonNYSE American Market Makers, and 

Professional Customers (‘‘Non 

Customer/Non Market Maker Interest’’) 

on the Exchange. 

Currently, the Exchange charges $0.42 

per contract for Electronic executions in 

Penny Pilot issues that clear in the Firm 

range. The Exchange proposes to modify 

that fee to $0.47, which is similar to 

transaction charges fees paid on other 

exchanges.4 The Exchange does not 

propose to alter the per contract fee of 

$0.75 for Electronic executions in NonPenny Pilot issues that clear in the Firm 

range. 

Additionally, the Exchange proposes 

to offer reduced fees to encourage ATP 

Holders to transact additional Non 

Customer/Non Market Maker Interest on 

the Exchange.5 Specifically, the 

Exchange proposes to charge a reduced 

per contract rate on Electronic 

executions of $0.36 per contract for 

Penny Pilot Issues, and $0.60 per 

contract for Non-Penny Pilot Issues, to 

ATP Holders that transact at least 0.05% 

of TCADV above that ATP Holder’s 2nd 

Quarter 2017 Non-Customer, NonMarket Maker Interest.6 However, the 

Exchange would exclude from this 

TCADV calculation Electronic 

executions in the following: CUBE, 

QCC, Strategy Executions, and any 

‘‘Routed Volume,’’ i.e., any volume 

attributable to orders routed to another 

exchange in connection with the 

Options Order Protection and Locked/ 

Crossed Market Plan referenced in Rule 

991NY. The Exchange notes that this 

proposed rate is comparable to pricing 

incentives offered on other options 

exchanges, including MIAX.7

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,8 in general, and 

furthers the objectives of Sections 

6(b)(4) and (5) of the Act,9 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 the proposed 

increased fee for Firm Electronic 

transactions in Penny Pilot Issues is 

reasonable as it is competitive with rates 

changes by other options exchanges for 

Firm transactions.10

The Exchange believes that the 

proposed reduced fees for NonCustomer/Non-Market Maker Interest 

executed on the Exchange are fair, 

equitable and not unreasonably 

discriminatory. The Exchange believes 

the proposed reduced rates are 

reasonably designed to encourage ATP 

Holders that transact Non-Customer/ 

Non-Market Maker Interest to direct this 

order flow to the Exchange. To the 

extent this goal is achieved, the 

Exchange would improve its overall 

competitiveness and strengthen its 

market quality for all market 

participants. The proposed rates are fair 

and equitable and not unreasonably 

discriminatory because they apply 

equally to all ATP Holders that transact 

Non-Customer/Non-Market Maker 

Interest. In addition, the proposed 

changes are equitable and not unfairly 

discriminatory because, while only 

Non-Customer/Non-Market Maker 

Interest qualifies for the reduced fees, 

any increase in this type of order flow 

would attract greater volume and 

liquidity of all account type [sic] to the 

Exchange, which benefit all market 

participants by providing more trading 

opportunities and tighter spreads. 

Finally, the Exchange believes that 

the proposed reduced rates are not 

unfairly discriminatory to Market 

Makers or Customers. The Exchange 

offers separate incentives to Market 

Makers, which incentives take into 

account the distinct obligations of 

Market Makers) [sic]. Further, the 

Exchange does not impose any fee on 

Electronic executions of Customer 

interest. 

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,11 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 proposed fee increase for Electronic 

executions in Penny Pilot Issues that 

clear in the Firm range are competitive 

with rates charged by other options 

exchanges, and therefore do not impose 

any undue burden on competition.12 In 

addition, the Exchange believes that the 

proposed reduced rates for NonCustomer/Non-Market Maker Interest 

executed on the Exchange rule change 

would increase both intermarket and 

intramarket competition by incenting 

ATP Holders to direct this type of 

interest to the Exchange, which would 

enhance the quality of the Exchange’s 

markets and increase the volume of 

contracts traded here. To the extent that 

this purpose is achieved, all the 

Exchange’s market participants would 

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. 

The proposed changes are intended to 

promote competition and better improve 

the Exchange’s competitive position and 

make the Exchange a more attractive 

marketplace in order to encourage 

market participants to bring increased 

volume to the Exchange. To the extent 

that the proposed changes make the 

Exchange a more attractive marketplace 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 82, No. 161 / Tuesday, August 22, 2017 / Notices 39923 

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

14 17 CFR 240.19b–4(f)(2). 

15 15 U.S.C. 78s(b)(2)(B). 16 17 CFR 200.30–3(a)(12). 

for market participants at other 

exchanges, such market participants are 

welcome to become ATP Holders. 

The 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) 13 of the Act and 

subparagraph (f)(2) of Rule 19b–4 14

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)15 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–2017–04 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–2017–04. 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– 

NYSEAMER–2017–04, and should be 

submitted on or before September 12, 

2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–17684 Filed 8–21–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81410; File No. TP 17–10] 

Order Granting Limited Exemptions 

From Exchange Act Rule 10b–17 and 

Rules 101 and 102 of Regulation M to 

IQ Real Return ETF Pursuant to 

Exchange Act Rule 10b–17(b)(2) and 

Rules 101(d) and 102(e) of Regulation 

M 

August 16, 2017. 

By letter dated August 16, 2017 (the 

‘‘Letter’’), as supplemented by 

conversations with the staff of the 

Division of Trading and Markets, 

counsel for IndexIQ ETF Trust (the 

‘‘Trust’’), on behalf of the Trust and one 

of its investment portfolios, the IQ Real 

Return ETF (the ‘‘Fund’’), NYSE Arca, 

Inc. (‘‘NYSE Arca’’) or other national 

securities exchanges on or through 

which shares issued by the Fund 

(‘‘Shares’’) may subsequently trade, 

ALPS Distributors, Inc. (the 

‘‘Distributor’’), and persons or entities 

engaging in transactions in Shares 

(collectively, the ‘‘Requestors’’), 

requested exemptions, or interpretive or 

no-action relief, from Rule 10b–17 of the 

Securities Exchange Act of 1934, as 

amended (‘‘Exchange Act’’), and Rules 

101 and 102 of Regulation M, in 

connection with secondary market 

transactions in Shares and the creation 

or redemption of aggregations of Shares 

of at least 50,000 shares (‘‘Creation 

Units’’). 

The Trust is registered with the 

Securities and Exchange Commission 

(‘‘Commission’’) under the Investment 

Company Act of 1940, as amended 

(‘‘1940 Act’’), as an open-end 

management investment company. The 

Fund is a ‘‘fund of funds’’ that is 

passively managed according to an 

index. The Fund is designed to track the 

performance of the IQ Real Return Index 

(‘‘Index’’), which seeks to provide 

investors with a hedge against the U.S. 

inflation rate by providing a ‘‘real 

return,’’ or a return above the rate of 

inflation, as represented by the 

Consumer Price Index (‘‘CPI’’). 

At least 80% of the Fund’s portfolio 

holdings are, and will be, shares of some 

or all of the exchange-traded products 

(‘‘ETPs’’) that constitute the Index. The 

Fund operates in a manner very similar 

to that of the ETPs held in its portfolio. 

Some or all of the remaining 20% may 

be invested in securities that are not 

Index constituents that the Fund’s 

adviser believes will help the Fund 

track the Index, as well as cash, cash 

equivalents and various types of 

financial instruments including, but not 


sradovich on DSK3GMQ082PROD with NOTICES