Document ID: SEC-2018-1789-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE American, LLC
Posted Date: 2018-11-21T05:00Z

[Federal Register Volume 83, Number 225 (Wednesday, November 21, 2018)]
[Notices]
[Pages 58794-58795]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-25343]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84603; File No. SR-NYSEAMER-2018-48]

Self-Regulatory Organizations; NYSE American LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Change To Modify the 
NYSE American Options Fee Schedule

November 15, 2018.
    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 November 8, 2018, 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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C.78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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 November 8, 2018. The proposed 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.

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 
November 8, 2018, to eliminate obsolete charges. Specifically, the 
Exchange proposes to remove now obsolete references to fees for Mini 
Options and Binary Return Derivatives (``ByRDS''), and to modify its 
Royalty Fees to remove products that the Exchange is no longer licensed 
to trade.
    The Exchange adopted fees for Mini Options in 2013, when Mini 
Options were first listed.\4\ In the intervening years, the Exchange 
ceased adding new Mini-Option series, and eventually there were no 
Mini-Options trading on the Exchange. Thus, the Exchange proposes to 
remove from the Fee Schedule as obsolete all references to Mini-Options 
and associated fees.\5\ Given that the Exchange is removing Mini 
Options, it proposes to further streamline the Fee Schedule by removing 
as superfluous the designation of ``Standard'' as to delineate non-Mini 
Options and to make any related conforming changes to maintain 
appropriate grammar, sentence structure, etc.\6\
---------------------------------------------------------------------------

    \4\ See, e.g., Securities Exchange Act Release No. 69298 (April 
4, 2013), 78 FR 21464 (April 10, 2013) (NYSEMKT-2013-24).
    \5\ See proposed Fee Schedule, Table of Contents, Key Terms and 
Definitions, Sections I.B., I.C., I.F., I.I., I.J., I.L., II and 
III. The Exchange proposes to hold Section I.B., which currently 
sets forth fees for Mini Options, as Reserved.
    \6\ See proposed Fee Schedule, Table of Contents, Key Terms and 
Definitions, Sections I.A.-I.G., I.I-I.J., I.L., II and III.
---------------------------------------------------------------------------

    The Exchange listed ByRDs for trading in 2016,\7\ but ceased adding 
new series earlier this year, and no longer has any ByRDs available for 
trading. Thus, the Exchange proposes to remove from the Fee Schedule as 
obsolete all references to ByRDs and associated fees/credits as well as 
to make necessary conforming changes, including deleting note 5 to 
Section I.A. and re-numbering the balance of the notes to this section 
to maintain clarity and consistency.\8\
---------------------------------------------------------------------------

    \7\ The Exchange adopted ByRDs in 2007 and re-launched trading 
in ByRDs in March, 2016. See Securities Exchange Act Release No. 
56251 (August 14, 2007), 72 FR 46523 (August 20, 2007)(SR-Amex-2004-
27) (Order approving listing of Fixed Return Options (``FROs'')); 
see also Securities Exchange Act Release Nos. 71957 (April 16, 
2014), 79 FR 22563 (April 22, 2014) (SR-NYSEMKT-2014-06) (Order 
approving name change from FROs to Binary Return Derivatives (ByRDs) 
and re-launch of these products, with certain modification, and 
amending Obvious Errors rules to include ByRDs); 77014 (February 2, 
2016), 81 FR 6566 (February 8, 2016) (SR-NYSEMKT-2016-16) (immediate 
effectiveness filing amending amend certain of rules related to 
ByRDs).
    \8\ See proposed Fee Schedule, Table of Contents, Sections I.A., 
I.H., I.M, and III.C., note 1. The Exchange proposes to hold Section 
I.H., which currently sets the Early Adopter Specialist [in ByRDs], 
as Reserved.
---------------------------------------------------------------------------

    Section I.K. of the Fee Schedule contains a table that sets forth 
the Royalty Fees that the Exchange charges market participant for 
trades in proprietary products for which the Exchange has a license, 
namely: Mini Nasdaq 100 Index (NDX), Nasdaq 100 Index (MNX), the 
Russell Index (RUT), and KBW Bank Index (BKX). The Exchange proposes to 
delete the table and to instead reference a $0.10 per contract Royalty 
Fee for BKX, as this product continues to be licensed to the 
Exchange.\9\
---------------------------------------------------------------------------

    \9\ See proposed Fee Schedule, Section I.K.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\10\ in general, and furthers the 
objectives of Sections 6(b)(4) and (5) of the Act,\11\ 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.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed modifications to the Fee

[[Page 58795]]

Schedule, including removing obsolete references to products that the 
Exchange no longer offers or licenses, together with their associated 
fees, are reasonable, equitable, and not unfairly discriminatory 
because the changes provides clarity to the Fee Schedule, and does not 
affect any current activity by any ATP Holder. Relatedly, the proposed 
modifications to streamline the text of the Fee Schedule, including by 
removing the modifier ``Standard'' to delineate on non-Mini Option, 
would likewise add clarity and transparency to the Fee Schedule making 
it easier for market participants to navigate and comprehend.

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. Instead, the proposed change is meant to add 
clarity and transparency to the Fee Schedule to the benefit of all 
market participants that trade on the Exchange.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------

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.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \15\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

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 [email protected]. Please include 
File Number SR-NYSEAMER-2018-48 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-NYSEAMER-2018-48. 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-NYSEAMER-2018-48 and should be submitted 
on or before December 12, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
---------------------------------------------------------------------------

    \16\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-25343 Filed 11-20-18; 8:45 am]
BILLING CODE 8011-01-P