Document ID: SEC-2020-0604-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: New York Stock Exchange, LLC
Posted Date: 2020-04-20T04:00Z

[Federal Register Volume 85, Number 76 (Monday, April 20, 2020)]
[Notices]
[Pages 21899-21901]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-08209]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-88630; File No. SR-NYSE-2020-26]

Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend its Price List To Eliminate Certain Obsolete Fees

April 14, 2020.
    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 March 31, 2020, New York Stock Exchange LLC (``NYSE'' or 
the ``Exchange'') 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 eliminate certain 
obsolete fees. The Exchange proposes to implement the fee changes 
effective April 1, 2020. The proposed rule change is available on the 
Exchange's website 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.

[[Page 21900]]

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 Price List to eliminate certain 
obsolete fees. The Exchange proposes to implement the fee changes 
effective April 1, 2020.
Proposed Rule Change
    The Exchange proposes to eliminate obsolete fees for trading Floor 
booth reservations, radio paging services and cellular phones, as 
follows.
Next Generation Trading Floor Reservation Fee
    The Exchange offers a fee of $12,000 per position, subject to a cap 
of $240,000 per member organization, to reserve Next Generation Trading 
Floor booth trading positions.\4\ The fee was adopted in 2010 on 
connection with the creation of the Exchange's ``Next Generation 
Trading Floor.'' The Exchange has not charged the fee in over seven 
years. The Exchange accordingly proposes to delete the Next Generation 
Trading Floor Reservation Fee as obsolete.
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    \4\ See Securities Exchange Act Release No. 61672 (March 8, 
2010), 75 FR 12321 (March 15, 2010) (SR-NYSE-2010-16).
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Radio Paging Service
    The Exchange offers radio paging service fees to support Floor 
broker beepers of $408.50 for the unit and first channel and $139.75 
for each additional channel. Floor brokers no longer use beepers, and 
the Exchange has not charged the fee in over two years. The Exchange 
accordingly proposes to delete the radio paging service fee as 
obsolete.
Cellular Phones
    The Exchange offers an annual ongoing maintenance fee for using 
Exchange-approved and provided portable phones on the trading Floor of 
$240.00 per phone, plus sales tax. In 2017, the Exchange amended Rule 
36 to permit Floor brokers to use non-Exchange approved and provided 
portable phones properly registered with the Exchange on the trading 
Floor.\5\ Exchange approved and provided portable phones were disabled 
as of September 18, 2017,\6\ and the fee has not been charged since 
that time. The Exchange accordingly proposes to delete the annual 
portable phone maintenance fee as obsolete.
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    \5\ See Securities Exchange Act Release No. 81103 (July 7, 
2017), 82 FR 32396 (July 13, 2017) (SR-NYSE-2017-07).
    \6\ See NYSE RB 17-03, dated July 21, 2017, available at https://www.nyse.com/publicdocs/nyse/markets/nyse/rule-interpretations/2017/NYSE%20RB%2017-03%20%20Date%20Revision.pdf.
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    The proposed change is not otherwise intended to address other 
issues, and the Exchange is not aware of any significant problems that 
market participants would have in complying with the proposed changes.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\7\ in general, and furthers the 
objectives of Sections 6(b)(4) and (5) of the Act,\8\ 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, and because it 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.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(4) & (5).
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The Proposed Rule Change Is Reasonable
    The Exchange believes that it is reasonable to delete fees from the 
Price List because the related services are no longer offered and the 
fees are accordingly no longer charged. Deleting obsolete fees for 
services the Exchange no longer offers would add greater clarity of the 
Exchange's rules and enable market participants to more easily navigate 
the Exchange's Price List.
The Proposed Rule Change Is an Equitable Allocation of Fees
    The Exchange believes the proposal equitably allocates fees among 
its market participants because elimination of obsolete fees would 
apply to all similarly-situated member organizations on an equal basis. 
All such member organizations would continue to be subject to the same 
fee structure, and access to the Exchange's market would continue to be 
offered on fair and nondiscriminatory terms.
The Proposed Change Is Not Unfairly Discriminatory and Would Protect 
Investors and the Public Interest
    The Exchange believes that the proposal is not unfairly 
discriminatory. The proposal is not unfairly discriminatory because it 
neither targets nor will it have a disparate impact on any particular 
category of market participant. The proposal does not permit unfair 
discrimination because elimination of obsolete fees would apply to all 
similarly situated member organizations on an equal basis. In addition, 
the Exchange believes that the proposed elimination of obsolete fees 
would remove impediments to and perfect the mechanism of a free and 
open market by eliminating references to services that are no longer 
offered, thereby improving the clarity of the Exchange's rules and 
enabling market participants to more easily navigate the Exchange's 
Price List. The Exchange also believes that the proposed change would 
protect investors and the public interest because the deletion of 
obsolete fees would make the Price List more accessible and transparent 
and facilitate market participants' understanding of the fees charged 
for services currently offered by the Exchange.
    For the foregoing 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,\9\ 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. Instead, as discussed above, the proposal relates 
solely to elimination of obsolete fees and, as such, would not have any 
impact on intra- or inter-market competition because the proposed 
change is solely designed to accurately reflect the services that the 
Exchange currently offers, thereby adding clarity to the Price List.
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    \9\ 15 U.S.C. 78f(b)(8).
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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) \10\ of the Act and subparagraph (f)(2) of Rule 
19b-4 \11\ thereunder, because it establishes a due,

[[Page 21901]]

fee, or other charge imposed by the Exchange.
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 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) \12\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \12\ 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

     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-NYSE-2020-26 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-NYSE-2020-26. 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 website (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 website 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. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-NYSE-2020-26, and should be submitted on 
or before May 11, 2020.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-08209 Filed 4-17-20; 8:45 am]
BILLING CODE 8011-01-P