Document ID: SEC-2023-0467-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: NYSE Arca, Inc.
Posted Date: 2023-05-01T04:00Z

[Federal Register Volume 88, Number 83 (Monday, May 1, 2023)]
[Notices]
[Pages 26619-26621]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-09085]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-97373; File No. SR-NYSEARCA-2023-32]

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

April 25, 2023.
    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 April 18, 2023, 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 and II 
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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[[Page 26620]]

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'') regarding fees for equipment for the Trading Floor. 
The Exchange proposes to implement the fee change effective April 18, 
2023.\4\ 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.
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    \4\ The Exchange originally filed to amend the Fee Schedule on 
April 6, 2023 (SR-NYSEARCA-2023-21) and withdrew such filing on 
April 18, 2023.
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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 regarding 
Market Maker podium fees to reflect the availability of new equipment 
for Market Makers' use on the Trading Floor. The Exchange proposes to 
implement the rule change on April 18, 2023.
    Currently, the Exchange equips each Market Maker podium with four 
23'' monitors. Market Makers may request up to two additional monitors 
per podium for a monthly surcharge of $100. In addition, Market Makers 
currently have the option to upgrade the 23'' monitors provided by the 
Exchange to 25'' or 27'' monitors for a one-time surcharge of $200 or 
$300 per monitor, respectively.\5\
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    \5\ See Fee Schedule, NYSE Arca OPTIONS: FLOOR and EQUIPMENT, 
MARKET MAKER PODIUM FEES. The Fee Schedule also provides that podia 
are only available to Market Makers with an active OTP (i.e., Market 
Makers that have only a Reserve OTP are ineligible for podia). In 
addition, each Market Maker on the Trading Floor may have no more 
than four (4) total podia and, each Market Maker in a given Trading 
Crowd, may have not more than two (2) podia, or eight (8) monitors. 
Id. The Exchange does not propose any changes to these aspects of 
Market Maker podium fees.
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    The Exchange now proposes to offer Market Makers an additional 
podium monitor upgrade option. Specifically, the Exchange proposes to 
modify the Fee Schedule to provide that Market Makers may upgrade their 
podium monitors to a 32'' size for a one-time surcharge of $600 per 
monitor. This proposed change would offer Market Makers the option to 
upgrade their podium monitors to a newly available larger size, which 
the Exchange believes would afford Market Makers additional flexibility 
in the configuration of their podia space. The Exchange notes that it 
established the current fees relating to Market Maker monitors in 
connection with the relocation of the Trading Floor to a new 
facility.\6\ The proposed change would support fair and efficient use 
of Trading Floor space, as the Exchange believes that the available 
space on the Trading Floor can accommodate an additional monitor 
upgrade option for Market Makers.
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    \6\ See Securities Exchange Act Release No. 84874 (December 19, 
2018), 83 FR 66818 (December 27, 2018) (SR-NYSEArca-2018-90) (Notice 
of Filing and Immediate Effectiveness of Proposed Rule Change To 
Modify the NYSE Arca Options Fee Schedule in Conjunction with 
Relocating the Trading Floor to a New Trading Facility).
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    The Exchange also proposes to amend the Fee Schedule to eliminate 
the current descriptions of the monitor sizes as ``standard,'' 
``large,'' or ``extra-large'' and instead state the sizes of the 
available monitors (e.g., 23'', 25'', and so forth). The Exchange 
believes this proposed change would add specificity and transparency to 
the Fee Schedule with respect to the sizes of the monitors available to 
Market Makers.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act, in general, and furthers the objectives 
of Sections 6(b)(4) and (5) of the Act, 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.
    The Exchange believes the proposed change is reasonable, equitable 
and not unfairly discriminatory for the following reasons. First, the 
proposed fee for the 32'' monitor upgrade is reasonable, as the 
Exchange believes it is relatively proportional to the current fees for 
upgrades to monitors of smaller sizes and would support the existing 
cost structure designed to provide Market Makers with flexibility in 
configuring their Floor space consistent with their own business needs 
(i.e., the cost structure will continue to allow a Market Maker to 
utilize only one podium with additional and/or upgraded monitors to 
facilitate additional personnel operating in the podium, as opposed to 
paying for multiple podia). Second, the proposed change is equitable 
because it would provide for the same fee for all Market Makers that 
wish to exercise the option to upgrade their podium monitors to the 
newly available 32'' size. Market Makers are not required to upgrade 
their podium equipment, but all those that choose to do so will be 
subject to the same fees. The Exchange also notes that the proposed fee 
for the newly available 32'' monitor would not impact any of the 
existing podium fees. Finally, the Exchange believes the proposed 
change is not unfairly discriminatory because it would apply to all 
Market Makers on an equal and non-discriminatory basis. Any Market 
Maker can choose to upgrade its podium monitors as suits its business 
needs, and the same surcharge, based on the size of the upgraded 
monitor, would apply to any such Market Maker. The Exchange further 
believes that the proposed change to replace the monitor size 
descriptors with the monitors' dimensions is reasonable, equitable, and 
not unfairly discriminatory because the change would add specificity 
and transparency to the Fee Schedule and would apply equally to all 
similarly situated market participants.
    The Exchange also believes the proposed Floor Fees are reasonable, 
equitable, and not unfairly discriminatory because OTP Holders can 
choose whether to participate on the Exchange solely through electronic 
means, or with a presence on the Trading Floor. The proposed change, 
which would offer Market Makers added flexibility with respect to the 
configuration of their podium monitors, is designed to continue to 
encourage market participants to conduct business on the Trading Floor. 
Orders brought to the Trading Floor could benefit all market 
participants by facilitating more trading opportunities.

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. The proposed change does not raise any competitive 
issues, as it is designed to

[[Page 26621]]

reflect the availability of optional new equipment for Market Maker use 
on the Exchange Trading Floor. Market Makers already have the option to 
upgrade their podium monitors from those provided by the Exchange to a 
larger size, and the proposed change would simply offer Market Makers 
an additional upgrade option that would, like the current upgrade 
options, be subject to a one-time surcharge. The Exchange believes the 
proposed change would afford Market Makers greater flexibility with 
respect to the configuration of their podia and could allow them to 
make more efficient use of their Trading Floor space.

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) \7\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \8\ thereunder, because it establishes a due, fee, or other charge 
imposed by the Exchange.
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 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) \9\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \9\ 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 (https://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-NYSEARCA-2023-32 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-2023-32. 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 (https://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. Do 
not include personal identifiable information in submissions; you 
should submit only information that you wish to make available 
publicly. We may redact in part or withhold entirely from publication 
submitted material that is obscene or subject to copyright protection.
    All submissions should refer to File Number SR-NYSEARCA-2023-32, 
and should be submitted on or before May 22, 2023.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-09085 Filed 4-28-23; 8:45 am]
BILLING CODE 8011-01-P