43430 Federal Register / Vol. 82, No. 178 / Friday, September 15, 2017 / Notices 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4The Exchange originally filed to amend the Fee 

Schedule on August 18, 2017 (SR–NYSEArca– 

2017–91) and withdrew such filing on August 29, 

2017. 

5Port fees are not applicable to ports used for the 

Exchange’s Risk Management Gateway service. 

Further, no fee applies to ports in the backup 

datacenter that are not utilized during the relevant 

month. No fee applies to ports in the backup 

datacenter that are utilized when the primary 

datacenter is unavailable. However, if a port in the 

backup datacenter is utilized when the primary 

datacenter is available, then the fee shall apply. 

6No fee applies to ports in the backup datacenter 

if configured such that it is duplicative of another 

drop copy port of the same user. Only one fee per 

drop copy port applies, even if the port receives 

drop copies from multiple order/quote entry ports 

and/or drop copies for activity on both NYSE Arca 

Equities and NYSE Arca Options. 

Authority (‘‘FINRA’’) and the Chicago 

Board Options Exchange. Currently, 

FINRA accounts for the bulk of the 

fingerprint submissions. 

It is estimated that 4,200 respondents 

submit approximately 285,600 sets of 

fingerprints (consisting of 

approximately 243,600 electronic sets 

and 42,000 hard copy sets) to SROs on 

an annual basis. The Commission 

estimates that it would take 

approximately 15 minutes to create and 

submit each fingerprint card. The total 

reporting burden is therefore estimated 

to be approximately 71,400 hours, or 

approximately 15 hours per respondent, 

annually. 

In addition, the SROs charge an 

estimated $25.00 fee for processing 

fingerprint cards submitted 

electronically, resulting in a total annual 

cost to all 4,200 respondents of 

$6,090,000, or $1,450 per respondent 

per year. The SROs charge an estimated 

$40.00 fee for processing fingerprint 

cards submitted in hard copy, resulting 

in a total annual cost to all 4,200 

respondents of approximately 

$1,680,000, or $400 per respondent per 

year. The combined annual cost to all 

respondents is thus $7,770,000. 

Because the FBI will not accept 

fingerprint cards directly from 

submitting organizations, Commission 

approval of fingerprint plans from 

certain SROs is essential to carry out the 

Congressional goal to fingerprint 

securities industry personnel. Filing 

these plans for review assures users and 

their personnel that fingerprint cards 

will be handled responsibly and with 

due care for confidentiality. 

Written comments are invited on: (a) 

Whether the proposed collection of 

information is necessary for the proper 

performance of the functions of the 

Commission, including whether the 

information shall have practical utility; 

(b) the accuracy of the Commission’s 

estimates of the burden of the proposed 

collection of information; (c) ways to 

enhance the quality, utility, and clarity 

of the information collected; and (d) 

ways to minimize the burden of the 

collection of information on 

respondents, including through the use 

of automated collection techniques or 

other forms of information technology. 

Consideration will be given to 

comments and suggestions submitted in 

writing within 60 days of this 

publication. 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

under the PRA unless it displays a 

currently valid OMB control number. 

Please direct your written comments 

to: Pamela Dyson, Director/Chief 

Information Officer, Securities and 

Exchange Commission, c/o Remi PavlikSimon, 100 F Street NE., Washington, 

DC 20549, or send an email to: PRA_

Mailbox@sec.gov. 

Dated: September 12, 2017. 

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–19678 Filed 9–14–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81573; File No. SR– 

NYSEARCA–2017–97] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend the NYSE Arca 

Equities Fees and Charges 

September 11, 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 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 Fees and Charges 

(the ‘‘Fee Schedule’’) to adopt a cap, for 

August and September 2017, on 

monthly fees for the use of ports 

connecting to NYSE Arca that are added 

after August 18, 2017. The Exchange 

proposes to implement the changes on 

August 29, 2017.4 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 

In connection with the introduction of 

new gateways on August 21, 2017, the 

Exchange proposes to amend its Fee 

Schedule to adopt a cap, for August and 

September 2017, on monthly fees for the 

use of ports connecting to NYSE Arca 

that are added after August 18, 2017. 

The Exchange currently makes ports 

available that provide connectivity to 

the Exchange’s trading systems (i.e., 

ports for the entry of orders and/or 

quotes (‘‘order/quote entry ports’’)) and 

charges $550 per port per month.5 The 

Exchange also currently makes ports 

available for drop copies and charges 

$550 per port per month.6

In order to facilitate an ETP Holder’s 

transition to the Exchange’s new 

gateways on August 21, 2017, the 

Exchange proposes to add to its Fee 

Schedule that, for the billing months of 

August and September 2017, the total 

charge per firm for order/quote entry 

ports and drop copy ports will be 

capped at the total number of such ports 

that the firm has activated at the start of 

trading on August 18, 2017, the last 

trading day prior to the introduction of 

the new gateways. This cap would have 

the effect of waiving the port fees, for 

August and September 2017, of any 

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Federal Register / Vol. 82, No. 178 / Friday, September 15, 2017 / Notices 43431 

7The NASDAQ Stock Market LLC (‘‘NASDAQ’’) 

prorates Order Entry Port fees for the first month 

for new requests for ports. See NASDAQ Price List 

at https://www.nasdaqtrader.com/ 

Trader.aspx?id=PriceListTrading2. 

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

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

10The terms ‘‘gateway’’ and ‘‘ports’’ are used 

interchangeably. Activating a port, for instance, 

essentially means establishing a connection to a 

gateway. 

11Billing for ports is based on the number of ports 

on the third business day prior to the end of the 

month. The level of activity with respect to a 

particular port does not affect the assessment of 

monthly fees, so even if a particular port that is 

available to a participant is not used, the participant 

is still billed for that port. See Securities Exchange 

Act Release No. 66110 (January 5, 2012), 77 FR 

1766 (January 11, 2012) (SR–NYSEArca–2012–01). 

12 15 U.S.C. 78f(b)(5). 13 15 U.S.C. 78f(b)(8). 

new, additional ports that an ETP 

Holder may use. 

Additionally, the Exchange proposes 

that, effective October 1, 2017, the 

monthly fees for ports activated after 

August 18, 2017, would be prorated to 

the number of trading days in a billing 

month, including any scheduled early 

closing days, that a port is connected to 

the Exchange.7

* * * * * 

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 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) 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 that the 

proposed cap for August and September 

2017 is reasonable because the proposed 

cap would allow ETP Holders a 

transition period to adjust to the new 

gateways.10 Further, to the extent that 

an ETP Holder needs an increasing 

number of ports to maintain or expand 

its activity on the Exchange, the 

Exchange believes without the proposed 

cap ETP Holders may be inhibited from 

growing their activity on the Exchange. 

As a general principal, the Exchange 

believes that greater participation on the 

Exchange by ETP Holders improves 

market quality for all market 

participants. Thus, the proposed cap 

balances the Exchange’s desire to 

improve market quality against the need 

to cover costs to support connectivity to 

the Exchange. Finally, the Exchange 

believes that the proposed cap 

constitutes an equitable allocation of 

fees because all similarly situated ETP 

Holders would be eligible for the cap. 

The Exchange further believes the 

proposal to charge fees for ports 

activated after August 18, 2017 on a 

prorated basis based on the number of 

trading days in a billing month the port 

is connected to the Exchange is fair and 

reasonable because it would allow all 

Exchange participants to subscribe to 

the most effective connectivity 

according to their trading requirements 

and as a result will only be assessed fees 

for the connectivity they utilize during 

any trading month beginning October 1, 

2017.11 The Exchange’s proposal to prorate port fees is also equitable since it 

would apply equally to all ETP Holders 

that connect to the Exchange. As noted 

above, NASDAQ currently charges new 

order entry ports on a prorated basis for 

the first month of service. The Exchange 

notes, however, that fees for ports 

activated before August 21, 2017 would 

not be pro-rated. The Exchange believes 

it is fair, equitable and not unfairly 

discriminatory to charge flat fees for 

ports activated before August 21, 2017 

as such ports are expected to be phased 

out within a short period of time after 

the introduction of the new gateways. 

The Exchange believes the proposed 

proration of fees for ports activated after 

August 18, 2017 would serve as an 

incentive to ETP Holders to fully 

transition to the new gateways even 

though the Exchange would continue to 

provide ETP Holders with the ability to 

connect to the Exchange through ports 

activated before August 21, 2017. The 

Exchange further notes that billing for 

ports activated before August 21, 2017 

will continue to be based on the number 

of ports on the third business day prior 

to the end of the month consistent with 

the Exchange’s billing policy, and so 

firms that cancel ports before the third 

business day prior to the end of the 

month will not be billed for those ports. 

The Exchange also believes the 

proposal furthers the objectives of 

Section 6(b)(5) of the Act 12 in that the 

proposed rule change is designed to 

promote just and equitable principles of 

trade, 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 and is 

not designed to permit unfair 

discrimination between customers, 

issuers, brokers and dealers. In 

particular, the Exchange believes that 

the Exchange’s pro-rating of port fees is 

consistent with Section 6(b)(5) of the 

Act since all ETP Holders would receive 

the benefit of being charged only for the 

connectivity utilized during any trading 

month beginning October 2017. As 

noted above, to the extent an ETP 

Holder continues to use ports activated 

before August 21, 2017 to connect to the 

Exchange during October 2017 and any 

subsequent months, the Exchange 

believes it is fair, equitable and not 

unfairly discriminatory to continue to 

charge flat fees for such ports until such 

time that connection to the Exchange 

through the use of old ports is no longer 

available which the Exchange expects to 

occur within a short period of time after 

the introduction of the new gateways. 

Finally, the Exchange believes that it 

is subject to significant competitive 

forces, as described below in the 

Exchange’s statement regarding the 

burden on competition. 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,13 the Exchange does not believe 

that the proposed rule change will 

impose any burden on intermarket or 

intramarket competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act in that it is 

simply designed to set forth the 

Exchange’s adoption of a fee cap and 

pro-rata billing for ports without any 

change to the fees currently charged by 

the Exchange for the use of ports to 

connect to the Exchange’s trading 

systems. ETP Holders may opt to 

disfavor the Exchange’s pricing if they 

believe that alternatives offer them 

better value. Accordingly, the Exchange 

does not believe that the proposed 

change will impair the ability of ETP 

Holders to maintain their competitive 

standing in the financial markets. The 

Exchange believes that fees for 

connectivity are constrained by the 

robust competition for order flow among 

exchanges and non-exchange markets. 

Further, excessive fees for connectivity, 

including port fees, would serve to 

impair an exchange’s ability to compete 

for order flow rather than burdening 

competition. The Exchange also does 

not believe the proposed rule change 

would impact intramarket competition 

as it would apply to all ETP Holders 

equally that connect to the Exchange 

through the use of new ports. To the 

extent an ETP Holder continues to use 

ports activated before August 21, 2017 

to connect to the Exchange during 

October 2017 and any subsequent 

mstockstill on DSK30JT082PROD with NOTICES

43432 Federal Register / Vol. 82, No. 178 / Friday, September 15, 2017 / Notices 

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 17 CFR 240.19b–4. 

3Phlx Rule 1000(f) requires that all Exchange 

options transactions be executed in one of the 

following three ways: (i) [a]utomatically by the 

[Exchange’s Trading System] pursuant to Phlx Rule 

1080 and other applicable options rules, (ii) by and 

among members in the Exchange’s options trading 

crowd none of whom is a floor broker; or (iii) 

through the Options Floor Broker Management 

System for trades involving a least one Floor 

Broker. Phlx rules currently permit four exceptions 

to Phlx Rule 1000(f)(iii). See Rule Rule 

1000(f)(iii)(A)–(D). 

4See Phlx Rule 1066(f) (defining multi-leg 

orders). 

5The Snapshot functionality would be codified in 

a new proposed rule, Phlx Rule 1063(e)(v). 

6See Securities Exchange Act Release No. 81230 

(July 27, 2017), 82 FR 35858. 

7 15 U.S.C. 78s(b)(2). 

months, the Exchange believes the 

proposed rule change would not impact 

intramarket competition as given that 

the Exchange would provide all ETP 

Holders the ability to connect to the 

Exchange through ports that are 

activated before August 21, 2017 and 

through ports that are activated after 

August 18, 2017. 

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– 

NYSEARCA–2017–97 on the subject 

line. 

Paper Comments 

• 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–NYSEARCA–2017–97. 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– 

NYSEARCA–2017–97 and should be 

submitted on or before October 6, 2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–19586 Filed 9–14–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81567; File No. SR–Phlx– 

2017–34] 

Self-Regulatory Organizations; 

NASDAQ PHLX LLC; Notice of 

Designation of a Longer Period for 

Commission Action on a Proposed 

Rule Change To Add an Exception to 

Phlx Rule 1000(f)(iii) for Certain Floor 

Broker Transactions and Adopt Rule 

1063(e)(v) To Add the Snapshot 

Functionality to the Options Floor 

Broker Management System 

September 11, 2017. 

On July 18, 2017, NASDAQ PHLX 

LLC (‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

add an exception to Phlx Rule 

1000(f)(iii) 3 to permit Floor Brokers to 

execute (1) multi-leg orders,4 and (2) 

simple orders in options on Exchange 

Trade Funds (‘‘ETFs’’) that are included 

in the Penny Pilot, in the trading crowd 

using ‘‘Snapshot,’’ a new functionality 

Phlx is proposing for its Floor Broker 

Management System (‘‘FBMS’’).5 The 

proposed rule change was published for 

comment in the Federal Register on 

August 1, 2017.6 The Commission has 

received no comment letters on the 

proposed rule change. 

Section 19(b)(2) of the Act 7 provides 

that within 45 days of the publication of 

notice of the filing of a proposed rule 

change, or within such longer period up 

to 90 days as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or as to which the 

self-regulatory organization consents, 

the Commission shall either approve the 

proposed rule change, disapprove the 

proposed rule change, or institute 

mstockstill on DSK30JT082PROD with NOTICES