[Federal Register Volume 82, Number 176 (Wednesday, September 13, 2017)]
[Notices]
[Pages 43059-43061]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-19376]



[[Page 43059]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81547; File No. SR-NYSEAMER-2017-11]


Self-Regulatory Organizations; NYSE American LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Change To Amend Its 
Price List

September 7, 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 29, 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 self-
regulatory organization. The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend its Price List to (1) delete fees 
and credits that are not applicable to trading on the Pillar trading 
platform, and (2) prorate Port Fees to the number of trading days in a 
billing month that a port is utilized. The Exchange proposes to 
implement the rule change on September 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, 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 its Price List to (1) delete fees 
and credits that are not applicable to trading on the Pillar trading 
platform, and (2) prorate Port Fees to the number of trading days in a 
billing month that a port is utilized.
    The Exchange proposes to implement the rule change on September 1, 
2017.
Deletion of Non-Pillar Fees and Credits
    To effect its transition of cash equities trading to Pillar, the 
Exchange amended its Price List to adopt a new pricing model for 
trading on the Pillar platform.\4\ Because specified transaction fees 
and credits applicable to trading cash equities on a Floor-based 
trading platform are not applicable to trading on Pillar, the Exchange 
designated certain fees and credits with the following preamble: ``The 
following Fees and Credits are not Applicable to Trading on the Pillar 
Trading Platform.'' \5\
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    \4\ See Securities Exchange Act Release Nos. [sic] 81228 (July 
27, 2017), 82 FR 36012 (August 2, 2017) (SR-NYSEMKT-2017-43).
    \5\ See id., 82 FR at 36012-13.
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    On July 24, 2017, the Exchange transitioned all cash equities 
trading to the Pillar platform. Because transaction fees and credits 
that are not applicable to trading on the Pillar trading platform are 
now obsolete, the Exchange proposes to delete the following fees and 
credits in their entirety: \6\
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    \6\ The Exchange proposes to delete these fees and credits in 
their entirety, including (1) the section headings of all of credits 
and fees being deleted, (2) all associated footnotes, and (3) the 
recently added preamble.
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    <bullet> Equity Transaction Fees and Credits for Listed Securities 
and the following subheadings:
    [cir] Transactions in Securities with a Per Share Price of $1.00 or 
More;
    [cir] Transactions in Securities with a Per Share Price Below 
$1.00;
    [cir] Fees and Credits Applicable to Designated Market Makers on 
Transactions in Securities with a Per Share Price of $1.00 or more;
    [cir] Fees and Credits Applicable to Designated Market Makers on 
Transactions in Securities with a Per Share Price below $1.00;
    [cir] Credits Applicable to Supplemental Liquidity Providers; and
    [cir] Fees and Credits Applicable to Executions in the Retail 
Liquidity Program.
    <bullet> Transaction Fees and Credits For Non-ETP Securities Traded 
Pursuant to Unlisted Trading Privileges and the following subheadings:
    [cir] Fees and Credits applicable to Market Participants;
    [cir] Fees and Credits applicable to Designated Market Makers 
(DMMs);
    [cir] Fees and Credits applicable to Supplemental Liquidity 
Providers (SLPs); and
    [cir] Fees and Credits Applicable to Executions in the Retail 
Liquidity Program.
    <bullet> Transaction Fees and Credits For ETPs Traded Pursuant to 
Unlisted Trading Privileges and the following subheadings:
    [cir] Fees and Credits applicable to Market Participants;
    [cir] Fees and Credits applicable to DMMs;
    [cir] Fees and Credits applicable to SLPs;
    [cir] Fees and Credits Applicable to Executions in the Retail 
Liquidity Program; and
    [cir] Crossing Sessions
    <bullet> Port Fees.
* * * * *
    The Exchange proposes to delete the following additional fees as 
being inapplicable to trading on Pillar:
    [cir] Risk Management Gateway (``RMG'');
    [cir] Equipment fees;
    [cir] Radio Paging Service;
    [cir] Financial Vendor Services;
    [cir] Cellular Phones;
    [cir] Booth Telephone System;
    [cir] Service Charges; and
    [cir] System Processing Fees, comprising fees for the Online 
Comparison System (OCS) and Merged Order Report.
    The RMG is no longer supported in Pillar and the various equipment 
fees relate to trading cash equities on a Floor-based trading platform, 
and are thus obsolete. Similarly, the Exchange no longer utilizes OCS 
or makes Merged Order Reports available.
    The Exchange also proposes to delete footnotes 17-19 designated as 
``Reserved'' in the ``CRD Fees for Member Organizations that are not 
FINRA Members'' section of the Price List. The Exchange believes it 
would reduce confusion and promote transparency to delete footnotes 
that do not have any substantive content.
    The Exchange also proposes a technical, non-substantive amendment 
to replace the heading ``Pillar Trading Platform'' with ``NYSE American 
Trading Fees and Credits.''
Proration of Port Fees
    Until October 1, 2017, the Exchange is not charging market 
participants for the use of order/quote entry ports or for the

[[Page 43060]]

use of drop copy ports.\7\ Thereafter, a $250 per port per month fee 
will apply for order/quote entry and drop copy ports.
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    \7\ Order/quote entry ports provide connectivity to the 
Exchange's trading systems for entry of orders and/or quotes. Drop 
copy ports allow for the receipt of ``drop copies'' of order or 
transaction information.
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    The Exchange proposes to amend the Price List to add a footnote to 
the heading of Section V (Port Fees) providing that port fees for 
order/quote entry and drop copies will be prorated to the number of 
trading days in a billing month.
* * * * *
    The proposed changes are not otherwise intended to address any 
other issues, and the Exchange is not aware of any problems that member 
organizations would have in complying with the proposed change.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Securities Exchange Act of 1934 (the ``Act''),\8\ in general, and 
furthers the objectives of Section 6(b)(4) \9\ of the Act, 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 also 
believes that the proposed rule change is consistent with Section 
6(b)(5) of the Act,\10\ in particular in that it is designed 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.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(4).
    \10\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that its proposed rule change to eliminate 
fees and credits that are not applicable to trading on Pillar would 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system because it would eliminate fees and 
credits that are now obsolete. Eliminating obsolete fees and credits 
would reduce potential confusion and add transparency and clarity to 
the Exchange's rules, thereby ensuring that members, regulators, and 
the public can more easily navigate and understand the Exchange's 
rulebook.
    The Exchange also believes that prorating the fees for order/quote 
entry and drop copy ports is reasonable because it would provide a 
nexus between the Exchange's charge for use of its ports and the number 
of trading days in a billing month that the market participant utilizes 
the applicable port. The Exchange believes that the proposed prorating 
of monthly port fees rebate is equitable and not unfairly 
discriminatory because it directly ties the monthly port fees to the 
number of trading days in that billing month. The Exchange also 
believes that the proposed prorating is equitable and not unfairly 
discriminatory because all market participants utilizing ports to 
connect to the Exchange would be treated the same.

B. Self-Regulatory Organization's Statement on Burden on Competition

    In accordance with Section 6(b)(8) of the Act,\11\ the Exchange 
believes that the proposed rule change would not impose any burden on 
competition that is not necessary or appropriate in furtherance of the 
purposes of the Act. The proposed rule change is not intended to 
address any competitive issues, but rather it is designed to eliminate 
obsolete fees and credits.
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    \11\ 15 U.S.C. 78f(b)(8).
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    Finally, the Exchange notes that it operates in a highly 
competitive market in which market participants can readily favor 
competing venues if they deem fee levels at a particular venue to be 
excessive or rebate opportunities available at other venues to be more 
favorable. In such an environment, the Exchange must continually adjust 
its fees and rebates to remain competitive with other exchanges and 
with alternative trading systems that have been exempted from 
compliance with the statutory standards applicable to exchanges. 
Because competitors are free to modify their own fees and credits in 
response, and because market participants may readily adjust their 
order routing practices, the Exchange believes that the degree to which 
fee changes in this market may impose any burden on competition is 
extremely limited. As a result of all of these considerations, the 
Exchange does not believe that the proposed changes will impair the 
ability of member organizations or competing order execution venues to 
maintain their competitive standing in the financial markets.

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) \12\ of the Act and subparagraph (f)(2) of Rule 
19b-4 \13\ thereunder, because it establishes a due, fee, or other 
charge imposed by the Exchange.
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    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f)(2).
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    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) \14\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \14\ 15 U.S.C. 78s(b)(2)(B).
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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

    <bullet> Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
    <bullet> Send an email to <a href="/cdn-cgi/l/email-protection#aedcdbc2cb83cdc1c3c3cbc0daddeeddcbcd80c9c1d8"><span class="__cf_email__" data-cfemail="2654534a430b45494b4b434852556655434508414950">[email protected]</span></a>. Please include 
File Number SR-NYSEAMER-2017-11 on the subject line.

Paper Comments

    <bullet> Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSEAMER-2017-11. 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

[[Page 43061]]

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-NYSEAMER-2017-11 and should 
be submitted on or before October 4, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
Eduardo A. Aleman,
Assistant Secretary.
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    \15\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2017-19376 Filed 9-12-17; 8:45 am]
 BILLING CODE 8011-01-P


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