Document ID: SEC-2014-0027-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: New York Stock Exchange, LLC
Posted Date: 2014-01-07T05:00Z

[Federal Register Volume 79, Number 4 (Tuesday, January 7, 2014)]
[Notices]
[Pages 885-887]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-31606]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71215; File No. SR-NYSE-2013-82]

Self-Regulatory Organizations; New York Stock Exchange LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Amending its Price List Related to Fees for Trading Licenses and To 
Delete Obsolete Text

December 31, 2013.
    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 December 18, 2013, New York Stock Exchange LLC (``NYSE'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``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\ 17 CFR 240.19b-4.

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[[Page 886]]

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amending [sic] its Price List related to 
fees for trading licenses and to delete obsolete text. The Exchange 
proposes to implement the Price List change immediately. The text of 
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 Exchange proposes to amend its Price List related to fees for 
trading licenses and to delete obsolete text. The Exchange proposes to 
implement the Price List change immediately.
    NYSE Rule 300(b) provides that, in each annual offering, up to 
1,366 trading licenses for the following calendar year will be sold 
annually at a price per trading license to be established each year by 
the Exchange pursuant to a rule filing submitted to the Securities and 
Exchange Commission (``Commission'') and that the price per trading 
license will be published each year in the Exchange's Price List. The 
trading license fees for 2013 are $40,000 per trading license for the 
first two licenses held by a member organization and $25,000 for each 
additional trading license. For trading licenses issued after January 
1, 2013, fees are prorated for the portion of the calendar year that 
the trading license is outstanding.\3\
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    \3\ For a trading license that is in place for 15 calendar days 
or less in a calendar month, proration for that month would be at a 
flat rate of $100 per day with no tier pricing involved. For a 
trading license that is in place for 16 calendar days or more in a 
calendar month, proration for that month would be computed based on 
the number of days as applied to the applicable annual fee for the 
trading license. See Price List at current n. 16.
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    If, however, a member organization is issued additional trading 
licenses between July 1, 2013 and December 31, 2013, and the total 
number of trading licenses held by the member organization between July 
1, 2013 and December 31, 2013 is greater than the total number of 
trading licenses held by the member organization on July 1, 2013, then 
the member organization is not charged a prorated fee for the period 
from July 3, 2013 to December 31, 2013 for those additional trading 
licenses above the number the member organization held on July 1, 
2013.\4\ If a firm becomes a member organization after July 1, 2013, 
the firm is assigned a baseline of one trading license and charged a 
prorated fee for that license. Any trading licenses in addition to the 
first trading license are not charged a prorated fee for the period 
from July 3, 2013 to December 31, 2013. If a member organization merges 
with another member organization on or after July 1, 2013, the total 
combined number of trading licenses held by each member organization on 
July 1, 2013 is considered the baseline number of trading licenses for 
the successor member organization as of the date of the merger.
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    \4\ See Securities Exchange Act Release No. 69992 (July 16, 
2013), 78 FR 43947 (July 22, 2013) (SR-NYSE-2013-51). See also Price 
List at current n. 16.
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    For 2014, the Exchange proposes to extend the fee relief for 
additional licenses until December 31, 2014. As a result, an annual fee 
would not apply to the number of trading licenses issued to a member 
organization between July 3, 2013 and December 31, 2014 that exceeds 
the total number of trading licenses held by the member organization on 
July 1, 2013. The Exchange proposes to maintain July 1, 2013 as the 
baseline date so that a consistent point in time would be used to 
determine how many trading licenses for which a member organization 
would be charged. The fee calculation for new or merged member 
organizations would also be extended. Thus, for any firm that becomes a 
member organization after July 1, 2013, the firm would be considered to 
have one trading license as of July 1, 2013 and charged a fee for that 
one license through December 31, 2014. For example, if a firm became a 
member organization on November 1, 2013, it would pay a prorated fee 
for one license until December 31, 2013 ($6,666) and then, under the 
current rates, pay $40,000 for 2014. If a firm becomes a member 
organization on March 1, 2014, it would pay a prorated fee under 
current rates for one license for the remainder of 2014 ($33,334). If a 
member organization merges with another member organization on or after 
July 1, 2013, the total combined number of trading licenses held by 
each member organization on July 1, 2013 would be considered the 
baseline number of trading licenses for the successor member 
organization as of the date of the merger through December 31, 2014.
    Footnote 15 in the Price List currently provides that Floor brokers 
will receive a monthly credit of $2,000 for the first two Floor broker 
licenses held by a member organization and a monthly credit of $500 for 
each additional Floor broker license held by a member organization for 
November and December 2012. Additionally, the Price List currently 
includes a section pertaining to the New York Block Exchange 
(``NYBX''), which was an electronic exchange facility that ceased 
operating on February 28, 2013.\5\ The Exchange proposes to delete this 
text because it is obsolete.\6\
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    \5\ See Securities Exchange Act Release No. 68861 (February 7, 
2013), 78 FR 10226 (February 13, 2013) (SR-NYSE-2013-12).
    \6\ The Exchange would renumber current footnote 16 as new 
footnote 15.
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    The proposed change is not otherwise intended to address any other 
issues and the Exchange is not aware of any problems that members or 
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,\7\ in general, and furthers the 
objectives of Sections 6(b)(4) and 6(b)(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.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange believes that the proposed change is reasonable 
because maintaining fee relief for the number of trading licenses that 
exceeds the total number of trading licenses held by the member 
organization on July 1, 2013 would continue to encourage member 
organizations to hold additional trading licenses, which would increase 
the number of market participants trading on the floor of the Exchange, 
thereby promoting liquidity, price discovery and the opportunity for 
price improvement for the benefit of all market participants. The 
Exchange believes that it is

[[Page 887]]

reasonable to maintain July 1, 2013 as the applicable baseline date so 
that a consistent point in time would be used to determine how many 
trading licenses for which a member organization would be charged, 
which would continue to provide member organizations with greater 
flexibility in managing their personnel. Further, the proposed billing 
for trading licenses would encourage additional firms to become member 
organizations on the Exchange, which would contribute to the quality of 
the Exchange's market.
    The Exchange believes that the proposed change is equitable and not 
unfairly discriminatory because all similarly situated member 
organizations would continue to be subject to the same trading license 
fee structure and because access to the Exchange's market would 
continue to be offered on fair and nondiscriminatory terms. The 
Exchange also believes that the proposed change is equitable and not 
unfairly discriminatory because all member organizations would continue 
to have the opportunity to enjoy the benefits of the fee relief with 
respect to additional trading licenses. The Exchange believes that it 
is equitable and not unfairly discriminatory to continue to assign new 
member organizations a baseline of one trading license because this 
will continue to encourage firms to become member organizations, 
thereby encouraging trading activity on the Exchange, which benefits 
all market participants.
    The Exchange also believes that removing obsolete text from the 
Price List is consistent with the Act because it would add greater 
clarity for member organizations.
    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,\9\ 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. Instead, the proposed change would help to remove 
a potential burden on competition by making it easier for member 
organizations to appropriately staff the floor of the Exchange, which 
is a key feature of the Exchange's structure for offering a fair and 
orderly market and competing with other exchanges. The proposed change 
would also contribute to making membership on the Exchange as a member 
organization more economical and could therefore lead to increased 
competition on the Exchange between member organizations. This, in 
turn, could lead to increased intermarket competition between the 
Exchange and other markets.
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    \9\ 15 U.S.C. 78f(b)(8).
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    Finally, the Exchange notes that it operates in a highly 
competitive market in which market participants can readily favor 
competing venues if they deem fee or credit levels at a particular 
venue to be unattractive. In such an environment, the Exchange must 
continually review, and consider adjusting, its fees and credits to 
remain competitive with other exchanges. For these reasons, the 
Exchange believes that the proposed rule change reflects this 
competitive environment and is therefore consistent with the Act.

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, 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-2013-82 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSE-2013-82. 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 such 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-NYSE-2013-82 and should be 
submitted on or before January 28, 2014.

    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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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2013-31606 Filed 1-6-14; 8:45 am]
BILLING CODE 8011-01-P [FEDREG][VOL]*[/VOL][NO]*[/NO][DATE]*[/
DATE][NOTICES]