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 

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Federal Register / Vol. 82, No. 178 / Friday, September 15, 2017 / Notices 43433 

8 Id. 

9 17 CFR 200.30–3(a)(31). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See Fee Schedule, Section I.E., available here, 

https://www.nyse.com/publicdocs/nyse/markets/ 

american-options/NYSE_American_Options_Fee_

Schedule.pdf. See also Fee Schedule, Key Terms 

and Definitions (defining TCADV as ‘‘Total Industry 

Customer equity and ETF option average daily 

volume. TCADV includes OCC calculated Customer 

volume of all types, including Complex Order 

transactions and QCC transactions, in equity and 

ETF options’’). 

5The volume thresholds are based on an OFP’s 

Customer volume transacted Electronically as a 

percentage of total industry Customer equity and 

ETF options volumes as reported by the Options 

Clearing Corporation (the ‘‘OCC’’). See OCC 

Monthly Statistics Reports, available here, http://

www.theocc.com/webapps/monthly-volume-reports. 

6As an alternative to the Step Up qualification 

basis, an OFP may qualify for Tier 2 (and receive 

the same $0.18 per contract credit) by achieving 

greater than 0.75 CADV. 

7See Fee Schedule, Section I.E., n. 1 (providing 

that the credit for Customer Complex Orders is 

provided regardless of whether the Complex Order 

trades against interest in the Complex Order Book 

or with individual orders and quotes in the 

Consolidated Book). 

8See proposed Fee Schedule, Section I.E. 

9The Enhanced Credits are only available to 

those OFPs who have an Affiliated NYSE American 

Options Market Making firm or an Appointed MM 

that has committed to the 1 Year Prepayment 

Program, Balance of the Year Program, or the 3 Year 

Continued 

proceedings to determine whether the 

proposed rule change should be 

disapproved. The 45th day for this filing 

is September 15, 2017. 

The Commission is extending the 45- 

day time period for Commission action 

on the proposed rule change. The 

Commission finds that it is appropriate 

to designate a longer period within 

which to take action on the proposed 

rule change so that it has sufficient time 

to consider and take action on the 

Exchange’s proposed rule change. 

Accordingly, the Commission, 

pursuant to Section 19(b)(2) of the Act,8

designates October 30, 2017, as the date 

by which the Commission should either 

approve or disapprove, or institute 

proceedings to determine whether to 

disapprove, the proposed rule change 

(File Number SR–Phlx–2017–34). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–19581 Filed 9–14–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81569; File No. SR– 

NYSEAMER–2017–13] 

Self-Regulatory Organizations; NYSE 

American LLC; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Modify the NYSE 

American Options Fee Schedule 

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 

September 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 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 modify the 

NYSE American Options Fee Schedule 

(‘‘Fee Schedule’’). The Exchange 

proposes to implement the fee change 

effective 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 purpose of this filing is to modify 

the Fee Schedule, effective September 1, 

2017. Specifically, the Exchange 

proposes to amend the American 

Customer Engagement (‘‘ACE’’) Program 

to modify various credits offered and to 

establish certain credits provided 

depending on the type of Electronic 

transactions (e.g., whether it is a simple 

or complex execution). The Exchange 

also proposes to add ‘‘Simple Order’’ to 

the glossary of defined terms in the Fee 

Schedule. 

Section I.E. of the Fee Schedule 

describes the Exchange’s ACE Program. 

The ACE Program features a base tier 

and five higher tiers expressed as a 

percentage of TCADV 4 and provides 

two alternative methods by which Order 

Flow Providers (each an ‘‘OFP’’) may 

receive per contract credits for 

Electronic Customer volume that the 

OFP, as agent, submits to the Exchange.5

The Exchange proposes to modify the 

qualifications for certain of the tiers. 

Currently, an OFP that achieves 

0.75% or less of Customer Electronic 

ADV (‘‘CADV’’) as a percent of TCADV 

falls within the Base Tier and is not 

eligible to receive ACE Credits. To 

qualify for Tier 1 or 2, an OFP may 

achieve a level of CADV that is equal to 

or greater than certain percentages of the 

OFP’s October 2015 volume 

(collectively, the ‘‘Step Up’’ 

qualifications): 

• For Tier 1, an OFP qualifies by 

achieving CADV that exceeds October 

2015 volume by at least 0.20% to be 

eligible for a $0.14 per contract credit; 

• For Tier 2, the OFP may qualify by 

achieving CADV that exceeds October 

2015 volume by at least 0.35% to be 

eligible for a $0.18 per contract credit.6

An OFP that achieves Tier 2 is also 

eligible to receive a more favorable 

$0.19 per contract credit on Electronic 

Customer Complex Orders.7

The Exchange proposes to eliminate 

Step Up qualifications and to instead 

provide that OFPs may qualify for ACE 

credits based solely on percentages of 

monthly TCADV. The Exchange 

believes this proposed change would 

provide the opportunity to all Exchange 

participants to meet the same 

reasonable, yet meaningful standard to 

qualify for the ACE Program credits. 

Thus, as proposed, an OFP that achieves 

monthly CADV of at least 0.40% would 

qualify for Tier 1; and an OFP that 

achieves monthly CADV of greater than 

0.75% would qualify for Tier 2.8

Consistent with the change, the 

Exchange proposes to modify the Fee 

Schedule to reflect that an OFP that 

achieves monthly CADV of less than 

0.40% falls within the Base Tier and, as 

is the case today, would therefore be 

ineligible for ACE credits.9

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