Document ID: SEC-2019-0266-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Chicago, Inc.
Posted Date: 2019-03-11T04:00Z

[Federal Register Volume 84, Number 47 (Monday, March 11, 2019)]
[Notices]
[Pages 8773-8774]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-04285]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-85248; File No. SR-NYSECHX-2019-01]

Self-Regulatory Organizations; NYSE Chicago, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Amend the 
Fee Schedule of the Exchange

March 5, 2019.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given 
that, on February 21, 2019, the NYSE Chicago, Inc. (``NYSE Chicago'' 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\ 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 the fee schedule of the Exchange 
(``Fee Schedule'') to eliminate fees and rebates related to the Sub-
second Non-displayed Auction Process (``SNAP'') and the outbound 
routing service. 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.

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 the Fee Schedule to eliminate all 
fees and rebates related to SNAP and the outbound routing service, 
which were both decommissioned on December 31, 2018.\4\ Specifically, 
the Exchange proposes the following amendments:
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    \4\ See Exchange Act Release No. 84852 (December 19, 2018), 83 
FR 66808 (December 27, 2018) (SR-CHX-2018-09).
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     Section E.6 (Routing Services Fees). Current Section E.6 
provides fees for away executions resulting from orders routed away 
from the Exchange pursuant to the outbound routing service. Given that 
the outbound routing service has been decommissioned, the Exchange 
proposes to replace all text under Section E.6 with the term 
``Reserved.''
     Section E.8(c) (Order Cancellation Fee Exemption). Section 
E.8 provides the Order Cancellation Fee, which is assessed to 
Participants \5\ per trading account symbol. Paragraph (c) provides an 
exemption to the Order Cancellation Fee if a trading account symbol 
meets a minimum threshold of executions resulting from single-sided 
orders submitted to the Matching System \6\ (``eligible executions''). 
When the outbound routing service was operational, eligible executions 
included executions within the Matching System and at away markets (for 
orders that were routed away pursuant to the outbound routing 
service).\7\ However, given that the outbound routing service has been 
decommissioned, eligible executions now only include executions within 
the Matching System. Accordingly, the Exchange proposes to amend the 
definition of eligible executions to omit references to the Routing 
Services and a repetitive reference to executions within the Matching 
System. Therefore, amended paragraph (c) would provide

[[Page 8774]]

that eligible executions shall only include executions resulting from 
single-sided orders submitted to the Matching System.
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    \5\ See Article 1, Rule 1(z) of the rules of the Exchange 
defining ``Participant.''
    \6\ The Matching System is a ``Trading Facility'' of the 
Exchange as defined under Article 1, Rule 1(z) of the rules of the 
Exchange.
    \7\ Only routable orders submitted to the Matching System were 
eligible to be routed away pursuant to the outbound routing service.
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     Section E.9 (SNAP Execution Fees). Current Section E.9 
provides the fees for certain executions that resulted from SNAP 
auctions. Given that SNAP has been decommissioned, the Exchange 
proposes to delete Section E.9 in its entirety.
     Section Q (SNAP Incentive Program). Current Section Q 
provides the SNAP Incentive Program, which provided certain rebates to 
Participants that initiated SNAP auctions. Given that SNAP has been 
decommissioned, the Exchange proposes to delete Section Q in its 
entirety.
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 Section 6(b)(1) of the Act,\9\ in particular, in that is 
designed to ensure that the Exchange is so organized and has the 
capacity to be able to carry out the purposes of this chapter and to 
comply, and to enforce compliance by its members and persons associated 
with its members, with the provisions of this chapter, the rules and 
regulations thereunder, and the rules of the Exchange. Specifically, 
since the proposed rule change eliminates obsolete fees and rebates, 
the proposed rule change would clarify and streamline the Fee Schedule 
and therefore enhance the ability of the Exchange to enforce compliance 
by its members and persons associated with its members with the rules 
of the Exchange.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(1).
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    In addition, the Exchange believes that the proposed rule change is 
consistent with Section 6(b) of the Act, in general, and furthers the 
objectives of Section 6(b)(4) of the Act, in particular, in that it 
provides for the equitable allocation of reasonable dues, fees, and 
other charges among its members and issuers and other persons using its 
facilities. Specifically, since the elimination of the obsolete fees 
and rebates would apply to all members of the Exchange and the proposed 
rule change does not modify any other fees and rebates that have 
already been approved by the Commission, the proposed rule change 
ensures the equitable allocation of reasonable dues, fees, and other 
charges among its members.

B. Self-Regulatory Organization's Statement on Burden on Competition

    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. Given that the proposed rule 
change deletes fees and rebates for functionality that has been 
decommissioned, the proposed rule change does not raise any competitive 
issues.

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-NYSECHX-2019-01 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-NYSECHX-2019-01. 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-NYSECHX-2019-01 and should be submitted 
on or before April 1, 2019.

    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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Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-04285 Filed 3-8-19; 8:45 am]
 BILLING CODE 8011-01-P