Document ID: SEC-2021-1104-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Arca, Inc.
Posted Date: 2021-08-13T04:00Z

[Federal Register Volume 86, Number 154 (Friday, August 13, 2021)]
[Notices]
[Pages 44765-44766]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-17304]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-92614; No. SR-NYSEArca-2021-69]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Modify the NYSE 
Arca Options Fee Schedule

August 9, 2021.
    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 August 4, 2021, NYSE Arca, Inc. (``NYSE Arca'' 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 modify the NYSE Arca Options Fee Schedule 
(``Fee Schedule''). The Exchange proposes to implement the fee change 
effective August 4, 2021. 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 purpose of this filing is to amend the Fee Schedule to remove 
language associated with a fee waiver and a credit that expired at the 
close of business on June 30, 2021.
    On March 18, 2020, the Exchange announced that it would temporarily 
close the Trading Floor, effective March 23, 2020, as a precautionary 
measure to prevent the potential spread of COVID-19. Following the 
temporary closure of the Trading Floor, the Exchange waived certain 
Floor-based fixed fees for April and May 2020.\4\ Although the Trading 
Floor partially reopened on May 4, 2020 and Floor-based open outcry 
activity was supported, certain participants were unable to resume pre-
Floor closure levels of operations. As a result, the Exchange extended 
the fee waiver through June 2021, but only for Floor Broker firms that 
were unable to operate at more than 50% of their March 2020 on-Floor 
staffing levels and for Market Maker firms that had vacant or 
``unmanned'' Podia for the entire month due to COVID-19 related 
considerations (the ``Qualifying Firms'').\5\
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    \4\ See Securities Exchange Act Release Nos. 88596 (April 8, 
2020), 85 FR 20796 (April 14, 2020) (SR-NYSEArca-2020-29); 88812 
(May 5, 2020), 85 FR 27787 (May 11, 2020) (SR-NYSEArca-2020-38).
    \5\ See Securities Exchange Act Release Nos. 89038 (June 10, 
2020), 85 FR 36447 (June 16, 2020) (SR-NYSEArca-2020-52); 89242 
(June 7, 2020), 85 FR 42037 (July 13, 2020) (SR-NYSEArca-2020-60); 
89480 (August 5, 2020), 85 FR 48591 (August 11, 2020) (SR-NYSEArca-
2020-69); 89694 (August 27, 2020), 85 FR 54608 (September 2, 2020) 
(SRNYSEArca-2020-76); 90191 (October 15, 2020), 85 FR 67032 (October 
21, 2020) (SRNYSEArca-2020-90); 90838 (December 31, 2020), 86 FR 657 
(January 6, 2021) (SRNYSEArca-2020-115), 91372 (March 18, 2021) 86 
FR 15980 (March 25, 2021) (SR-NYSEArca-2021-18).
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    Because the Trading Floor continued to operate with reduced 
capacity, the Exchange extended the fee waiver for Qualifying Firms 
through ``the earlier of the first full month of a full reopening of 
the Trading Floor facilities to Floor personnel or June 2021''. The 
Trading Floor re-opened without social distancing requirements for 
vaccinated personnel on May 12, 2021.
    Additionally, in May 2021, the Exchange implemented an incentive to 
encourage Floor Brokers to increase their Professional Customer 
billable volume.\6\ Specifically, the Exchange offered Floor Brokers a 
credit of $0.13 per contract for each billable

[[Page 44766]]

Professional Customer contract that exceeded a baseline average daily 
volume for the month. This fee incentive was adopted with a stated 
expiration at the close of business on June 30, 2021.
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    \6\ See Exchange Act Release No. 91936 (May 19, 2021) 86 FR 
28178 (May 25, 2021) (SR-NYSEArca-2021-41).
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    As the expiration date for both the fee waiver and the fee 
incentive has passed, the Exchange is submitting this proposed rule 
change to remove language related to the fee waiver and the fee 
incentive from the Fee Schedule.
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.
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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 modifications to the Fee 
Schedule to remove an expired fee waiver and an expired fee incentive 
that the Exchange no longer offers are reasonable, equitable, and not 
unfairly discriminatory because the changes would provide clarity to 
the Fee Schedule, and do not affect any current activity by any OTP 
Holder or OTP Firm.

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

    In accordance with Section 6(b)(8) of the Act, 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.

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) \9\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \10\ thereunder, because it establishes a due, fee, or other charge 
imposed by the Exchange.
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 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) \11\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \11\ 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-NYSEArca-2021-69 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-NYSEArca-2021-69. 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-NYSEArca-2021-69, and should be 
submitted on or before September 3, 2021.
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    \12\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-17304 Filed 8-12-21; 8:45 am]
BILLING CODE 8011-01-P