46580 Federal Register / Vol. 82, No. 192 / Thursday, October 5, 2017 / Notices 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See Fee Schedule, QUALIFIED CONTINGENT 

CROSS TRANSACTION FEES, available here, 

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

arca-options/NYSE_Arca_Options_Fee_

Schedule.pdf. 

5See id., Endnote 14. 

6See proposed Fee Schedule, Endnote 13 

(providing that ‘‘[t]he maximum Floor Broker 

Rebate paid shall not exceed $375,000 per month 

per Floor Broker firm’’). 

7See NYSE American Options Fee Schedule, 

Section I.F., QCC Fees & Credits, n. 1, available 

here, https://www.nyse.com/publicdocs/nyse/ 

markets/american-options/NYSE_American_

Options_Fee_Schedule.pdf (providing that ‘‘[t]he 

maximum Floor Broker credit paid shall not exceed 

$375,000 per month per Floor Broker firm’’); 

Chicago Board Options Exchange (‘‘CBOE’’) fee 

schedule, QCC Rate Table, p. 5, available here, 

http://www.cboe.com/publish/feeschedule/CBOE

FeeSchedule.pdf (providing that QCC credits ‘‘will 

be capped at $350,000 per month’’, per CBOE 

trading permit holder). 

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

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

10See supra note 7. 

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

12See supra note 7. 

Section 6(c) of the Act permits the 

Commission to exempt any persons or 

transactions from any provision of the 

Act if such exemption is necessary or 

appropriate in the public interest and 

consistent with the protection of 

investors and the purposes fairly 

intended by the policy and provisions of 

the Act. 

For the Commission, by the Division of 

Investment Management, pursuant to 

delegated authority. 

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–21398 Filed 10–4–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81767; File No. SR– 

NYSEARCA–2017–114] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend the NYSE Arca 

Options Fee Schedule 

September 29, 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 26, 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 Options Fee Schedule (‘‘Fee 

Schedule’’). The Exchange proposes to 

implement the fee change effective 

October 1, 2017. 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 purpose of this filing is to amend 

the Fee Schedule effective October 1, 

2017. Specifically, the Exchange 

proposes to place a cap on an incentive 

for Floor Brokers to execute Qualified 

Contingent Cross (‘‘QCC’’) transactions. 

Currently, Floor Brokers earn a rebate 

for executed QCC orders of $0.035 per 

contract side.4 QCC executions in which 

a Customer or Professional Customer 

(collectively, ‘‘Customer’’) is on both 

sides of the QCC trade are not eligible 

for the Floor Broker rebate.5 The 

Exchange does not currently impose any 

monthly cap on the maximum to be 

paid under the QCC rebate program. 

The Exchange proposes to limit the 

maximum Floor Broker rebate to 

$375,000 per month per Floor Broker 

firm.6 Although the proposal would 

limit the potential monthly rebate, the 

Exchange believes that OTP Holders 

acting as Floor Brokers would still be 

incented to achieve the highest rebate 

possible. The Exchange notes that other 

options exchanges have similar caps on 

rebates offers for QCC transactions.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. 

Specifically, the Exchange does not 

currently impose any monthly cap on 

the maximum to be paid to Floor Broker 

firms under the QCC rebate program. 

The Exchange believes the proposed cap 

is reasonable, equitable and not unfairly 

discriminatory because all OTP Holders 

would be uniformly capped at a 

potential rebate of $370,000 per month 

per Floor Broker firm. In addition, the 

proposal is reasonable, equitable and 

not unfairly discriminatory because it is 

consistent with similar caps on rebates 

pad [sic] for QCC transactions on other 

exchanges.10

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 will 

impose any burden on competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act. 

The proposed cap would not impose an 

unfair burden on competition because 

all OTP Holders would be uniformly 

capped at $375,000 per month per Floor 

Broker firm and because the proposal is 

consistent with similar caps on rebates 

pad [sic] for QCC transactions on other 

exchanges.12

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. 


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Federal Register / Vol. 82, No. 192 / Thursday, October 5, 2017 / Notices 46581 

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). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 79081 

(Oct. 11, 2016), 81 FR 71548 (Oct. 17, 2016) (SR– 

NASDAQ–2016–135); see also Securities Exchange 

Act Release No. 80708 (May 17, 2017), 82 FR 23690 

(May 23, 2017) (SR–NASDAQ–2017–040); see also 

Securities Exchange Act Release No. 80810 (May 

30, 2017), 82 FR 26205 (June 6, 2017) (SR– 

NASDAQ–2017–052). 

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– 

NYSEArca–2017–114 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–NYSEArca–2017–114. 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–2017–114, and should be 

submitted on or before October 26, 

2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–21404 Filed 10–4–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81773; File No. SR– 

NASDAQ–2017–101 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Extend the 

Implementation Date for Certain 

Changes to the Rule 5700 Series and 

Rule 5810 

September 29, 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 

September 27, 2017, The NASDAQ 

Stock Market LLC (‘‘Nasdaq’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. 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 extend the 

date on which certain changes 

concerning the continued listing 

requirements for exchange-traded 

products (‘‘ETPs’’) in the Nasdaq Rule 

5700 Series, as well as a related 

amendment to Nasdaq Rule 5810 

(Notification of Deficiency by the 

Listing Qualifications Department), are 

implemented. 

The Exchange proposes to delay the 

implementation date of these changes 

until January 1, 2018. Given the scope 

of the proposed rule changes, the 

Exchange believes that this will ensure 

that ETP issuers have adequate time to 

finish developing and put into operation 

the new processes and systems 

necessitated by them. 

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 

Exchange 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 

Exchange 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 

On September 30, 2016, the Exchange 

filed a proposed rule change, as 

subsequently amended by Amendments 

No. 1 and 2 thereto, and as 

supplemented by two clean-up filings 3

(as amended and supplemented, 

collectively, the ‘‘Proposed Rule 

Change’’), to adopt certain changes to 

the Nasdaq Rule 5700 Series, as well as 

a related amendment to Nasdaq Rule 


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