47588 Federal Register / Vol. 82, No. 196 / Thursday, October 12, 2017 / Notices 

16 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. 

4The Exchange originally filed to amend the Fee 

Schedule on September 29, 2017 (SR–NYSEAmer– 

2017–20) and withdrew such filing on October 4, 

2017. 

5See Fee Schedule, Section III.A. (Monthly ATP 

Fees), available here, https://www.nyse.com/ 

publicdocs/nyse/markets/american-options/NYSE_

American_Options_Fee_Schedule.pdf. 

6See id. (providing, in relevant part, that ‘‘[e]ach 

calendar quarter, with a one-month lag, the 

Exchange will publish on its Web site a list of the 

Bottom 45% of issues traded’’). 

All submissions should refer to File 

Number SR–FINRA–2017–031. 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 

a.m. and 3 p.m. Copies of such filing 

also will be available for inspection and 

copying at the principal office of 

FINRA. 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–FINRA–2017–031 and 

should be submitted on or before 

November 2, 2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–21994 Filed 10–11–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81828; File No. SR– 

NYSEAMER–2017–22] 

Self-Regulatory Organizations; NYSE 

American LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Change To Modify the NYSE American 

Options Fee Schedule 

October 5, 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 October 

4, 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 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 October 4, 2017.4 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 October 4, 

2017. Specifically, the Exchange 

proposes to (i) modify the monthly rates 

for certain American Trading Permits 

(each an ‘‘ATP’’); and (ii) reduce the 

Messages to Contracts Traded Ratio 

Fees. 

Monthly ATP Fees 

NYSE American Market Makers (each, 

an ‘‘MM’’) must have a certain number 

of ATPs each month in order to submit 

electronic quotations in option issues in 

their appointment.5 The Exchange 

currently employs a sliding scale for the 

cost to each MM per ATP, with the 

amount decreasing as the number of 

ATPs utilized increases, as follows: 6

ATP type Monthly fee 

per ATP Number of issues permitted in a market makers quoting assignment 

MM 1st ATP .................................................................. $8,000 60 plus the Bottom 45%. 

MM 2nd ATP ................................................................ 6,000 150 plus the Bottom 45%. 

MM 3rd ATP ................................................................. 5,000 500 plus the Bottom 45%. 

MM 4th ATP ................................................................. 4,000 1,100 plus the Bottom 45%. 

MM 5th ATP ................................................................. 3,000 All issues traded on the Exchange. 

MM 6th or more ATPs .................................................. 2,000 All issues traded on the Exchange. 

Thus, an MM that would like the 

privilege of quoting in all issues traded 

on the Exchange must have at least five 

ATPs. And, if an MM firm sponsors 

multiple individual MMs, the MM firm 

must pay for the requisite number of 

ATPs for each individual MM to submit 

quotes on the Exchange. For example, 

assume an MM firm has three 

individual MMs and that each MM 

needs to be able to submit quotes in all 

issues traded on the Exchange. In this 

example, the MM firm would have to 

pay for 15 ATPs (five for each 

individual MM). 


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Federal Register / Vol. 82, No. 196 / Thursday, October 12, 2017 / Notices 47589 

7See Fee Schedule, Section II (Monthly Excessive 

Bandwidth Utilization Fees) (‘‘EBUF’’) (describing 

both the Messages to Contracts Traded Ratio Fee 

and the Order to Trade Ratio Fee, which comprises 

the EBUF, and noting that if an ATP Holder is liable 

for either or both fees in a given month, that firm 

would only be charged the greater of the two fees). 

The Exchange is not modifying the Order to Trade 

Ratio Fees. 

8Currently, the Exchange has set the ratio at 1 

contract for every 5,000 messages. 

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

10 15 U.S.C. 78f(b)(4) and (5). 

11See Chicago Board of Options Exchange 

(‘‘CBOE’’) fee schedule, Market-Maker Trading 

Permit Sliding Scale, p. 7, available here, http://

www.cboe.com/publish/feeschedule/CBOEFee

Schedule.pdf (charging $5,000 per trading permit 

for the first ten permits); NYSE Arca Options Fee 

Schedule, NYSE Arca GENERAL OPTIONS and 

TRADING PERMIT (OTP) FEES, available here, 

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

arca-options/NYSE_Arca_Options_Fee_

Schedule.pdf (imposing a sliding scale of fees, 

starting at $6,000 per month for the first trading 

permit down to $1,000 per month for the fifth and 

additional permits). 12 15 U.S.C. 78f(b)(8). 13See supra note 11. 

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). 

The Exchanges proposes to modify its 

monthly ATP rates such that it will 

charge $2,000 for the 6th, 7th, 8th, and 

9th ATP and would charge $500 per 

month for the tenth or additional ATPs. 

The Exchange believes that this 

proposed reduction in ATP fees would 

encourage MM firms to have more 

individual MMs to quote on the 

Exchange, which will in turn encourage 

liquidity and depth of markets. 

Messages to Contracts Traded Ratio Fees 

The Exchange proposes to modify the 

Messages to Contracts Traded Ratio Fees 

(‘‘Messages Fee’’), which are assessed as 

part of the Monthly Excessive 

Bandwidth Utilization Fees.7 Currently, 

the Exchange charges $0.01 per 1,000 

messages (including orders or quotes) in 

excess of 1.5 billion messages in a 

calendar month if the ATP Holder does 

not execute at least 1 contract for every 

1,500–5,000 messages entered, as 

determined by the Exchange.8 The 

Exchange proposes to reduce this rate 

from $0.01 to $0.005. The Exchange 

believes this reduced rate would still 

encourage market participants to be 

rational and efficient in the use of the 

Exchange’s system capacity. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,9 in general, and 

furthers the objectives of Sections 

6(b)(4) and (5) of the Act,10 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 change to ATP fees is 

reasonable and not unfairly 

discriminatory because the fees are 

within the general range of similar fees 

assessed for trading permits on other 

exchanges.11 In addition, the proposed 

change relates to the cost of ATPs for 

MMs and are therefore are not unfairly 

discriminatory to non-MMs because 

only MMs are required to submit 

quotations as part of their obligations to 

operate on the Exchange (resulting in 

the need for multiple ATPs). To the 

extent that the proposed fee encourages 

MM firms to have more individual MMs 

quoting on the Exchange, all market 

participant would benefit from 

competitive quoting that would increase 

opportunities to trade and enhance 

price discovery. 

The Exchange also believes that the 

proposed reduction in the Messages 

Fees is reasonable, equitable, and not 

unfairly discriminatory because it 

should still encourage market 

participants to be rational and efficient 

in the use of the Exchange’s system 

capacity, which benefits all market 

participants. The proposed reduced fee 

is reasonable because it would apply to 

all market participants that are subject 

to the Messages Fee. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

In accordance with Section 6(b)(8) of 

the Act,12 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 Exchange believes the proposed 

changes to the ATP fees are procompetitive because the changes are 

consistent with similar fees on other 

options exchanges.13 The proposed 

change does not impose an undue 

burden on non-MMs as only MMs 

require multiple ATPs to satisfy quoting 

obligations on the Exchange. To the 

extent that the proposed change results 

in more competitive quoting, the 

proposed change is pro-competitive and 

should result in increased opportunities 

to trade as well as enhanced price 

discovery to the benefit of all market 

participants. 

Similarly, the changes to the Messages 

Fees would not place an unfair burden 

on competition as it would continue to 

encourage efficient use of Exchange 

bandwidth and would apply to all 

market participants that are subject to 

the Messages Fee. 

To the extent that these purposes are 

achieved, the Exchange believes that the 

proposed changes would enhance the 

quality of the Exchange’s markets and 

increase the volume of orders directed 

to the Exchange. In turn, all the 

Exchange’s market participants would 

benefit from the improved market 

liquidity. If the proposed changes make 

the Exchange a more attractive 

marketplace 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) 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. 


asabaliauskas on DSKBBXCHB2PROD with NOTICES
47590 Federal Register / Vol. 82, No. 196 / Thursday, October 12, 2017 / Notices 

17 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78f(b). 

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

5 Id. 

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–2017–22 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–2017–22. 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– 

NYSEAMER–2017–22, and should be 

submitted on or before November 2, 

2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Brent J. Fields, 

Secretary. 

[FR Doc. 2017–21998 Filed 10–11–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81827; File No. SR–CBOE– 

2017–063] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change Relating to the Fees 

Schedule 

October 5, 2017. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on 

September 29, 2017, Chicago Board 

Options Exchange, Incorporated (the 

‘‘Exchange’’ or ‘‘CBOE’’) 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 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 seeks to amend the 

Fees Schedule. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

(http://www.cboe.com/AboutCBOE/ 

CBOELegalRegulatoryHome.aspx), at 

the Exchange’s Office of the Secretary, 

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 

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 

The Exchange proposes to amend its 

Fees Schedule, effective October 2, 

2017. Specifically, the Exchange 

proposes to amend its marketing fee 

program to assess the fee in Russell 

2000 Index (‘‘RUT’’) options at a rate of 

$0.30 per contract. The Exchange 

currently assess its marketing fee for 

penny classes at a rate of $0.25 and nonpenny classes at the rate of $0.70 per 

contract. CBOE believes assessing the 

marketing fee in RUT options will allow 

CBOE Market-Makers (including DPMs, 

PMMs, and LMMs) to compete better for 

order flow in RUT options. Footnote 6 

of the Fees Schedule currently exempts 

Underlying Symbol List A symbols from 

the marketing fee. Footnote 34 of the 

Fees Schedule identifies RUT as an 

Underlying Symbol List A symbol. 

Thus, the Exchange is amending 

footnote 6 of the Fees Schedule to 

provide that the marketing fee will 

apply to RUT. RUT will remain an 

Underlying Symbol List A symbol in all 

other respects. 

The Exchange also proposes to make 

a non-substantive amendment to the 

term ‘binaries’ in footnote 6 of the Fees 

Schedule. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) and the rules and regulations 

thereunder applicable to the Exchange 

and, in particular, the requirements of 

Section 6(b) of the Act.3 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 4 requirements that the rules of 

an exchange be designed to prevent 

fraudulent and manipulative acts and 

practices, to promote just and equitable 

principles of trade, to foster cooperation 

and coordination with persons engaged 

in regulating, clearing, settling, 

processing information with respect to, 

and 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. 

Additionally, the Exchange believes the 

proposed rule change is consistent with 

the Section 6(b)(5) 5 requirement that 

the rules of an exchange not be designed 

to permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

In particular, the Exchange believes 

applying the marketing fee to RUT 

options is equitable, reasonable, and not 

unfairly discriminatory as the marketing 

fee to be applied to RUT options is 

similar to the marketing fee currently 


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