[Federal Register Volume 86, Number 136 (Tuesday, July 20, 2021)]
[Notices]
[Pages 38375-38377]
[FR Doc No: 2021-15335]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-92400; File No. SR-NYSEARCA-2021-60]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend the NYSE
Arca Equities Fees and Charges

July 14, 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 July 1, 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 amend the NYSE Arca Equities Fees and
Charges (``Fee Schedule'') to (1) eliminate an alternative credit
applicable under Tier 2 pricing tier, and (2) eliminate the Tracking
Order Tier 1 and Tracking Order Tier 2 pricing tiers. The Exchange
proposes to implement the fee changes effective July 1, 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 Exchange proposes to amend the Fee Schedule to (1) eliminate an
alternative credit applicable under Tier 2 pricing tier, and (2)
eliminate the Tracking Order Tier 1 and Tracking Order Tier 2 pricing
tiers. The Exchange proposes to implement the fee changes effective
July 1, 2021.
    Currently, a Tier 2 credit of $0.0029 per share for orders in Tape
A and Tape C Securities that provide liquidity to the Book, and a
credit of $0.0022 per share for orders in Tape B Securities \4\ that

provide liquidity to the Book, applies to ETP Holders \5\ that either
(1) provide liquidity an average daily share volume per month of 0.30%
or more, but less than 0.70% of the US CADV or (2) provide liquidity of
0.10% of more of the US CADV per month, and are affiliated with an OTP
Holder or OTP Firm that provides an ADV of electronic posted Customer
and Professional Customer executions in all issues on NYSE Arca Options
(excluding mini options) of at least 1.50% of total Customer equity and
ETF option ADV as reported by The Options Clearing Corporation
(``OCC''). In May 2019, the Exchange adopted a higher credit of $0.0031
per share for orders that provide liquidity in Tape A and Tape C
Securities, and $0.0024 per share for orders that provide liquidity in
Tape B Securities. The higher credit is applicable for orders that
provide displayed liquidity to the Book for ETP Holders and Market
Makers that meet the requirements of Tier 2 \6\ and, for the billing
month, (1) execute providing volume equal to at least 0.30% of US CADV,
(2) execute removing volume equal to at least 0.285% of US CADV, and
(3) execute Market-On-Close and Limit-On-Close Orders executed in a
Closing Auction of at least 0.075% of US CADV.\7\
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    \4\ An additional credit applies to ETP Holders and Market
Makers affiliated with LMMs that provide displayed liquidity to the
Book based on the number of Less Active ETP Securities in which the
LMM is registered as the LMM. See LMM Transaction Fees and Credits
on the Fee Schedule for the applicable tiered credits.
    \5\ All references to ETP Holders in connection with this
proposed fee change include Market Makers.
    \6\ To qualify for Tier 2, ETP Holders and Market Makers must
provide liquidity an average daily share volume per month of 0.30%
or more, but less than 0.70% of the US CADV or (a) provide liquidity
an average daily share volume per month of 0.25% or more, but less
than 0.70% of the US CADV, (b) execute removing volume in Tape B
Securities equal to at least 0.40% of US Tape B CADV, and (c) are
affiliated with an OTP Holder or OTP Firm that provides an ADV of
electronic posted Customer and Professional Customer executions in
all issues on NYSE Arca Options (excluding mini options) of at least
0.25% of total Customer equity and ETF option ADV as reported by
OCC. See Tier 2, Fee Schedule.
    \7\ See Securities Exchange Act Release No. 85888 (May 17,
2019), 84 FR 23821 (May 23, 2019) (SR-NYSEArca-2019-37).
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    The Exchange proposes to eliminate the higher credit of $0.0031 per
share for orders that provide liquidity in Tape A and Tape C
Securities, and $0.0024 per share for orders that provide liquidity in
Tape B Securities and remove it from the Fee Schedule. The Exchange has
observed that not a single ETP Holder has qualified for the higher
credit over the last six months. Given that the higher credit adopted
by the Exchange has not served to meaningfully increase activity on the
Exchange, the Exchange has determined to eliminate it from the Fee
Schedule. The Exchange is not proposing any other change to the Tier 2
pricing tier.
    Additionally, the Exchange proposes to eliminate the Tracking Order
Tier 1 and Tracking Order Tier 2 pricing tiers.
    The Exchange adopted volume-based tiers applicable to Tracking
Orders \8\ in 2009 in order to incentivize the use of this order type
and attract liquidity to the Exchange.\9\ Currently, Tracking Order
Tier 1 currently offers ETP Holders a credit of $0.0015 per share for
Tracking Orders that result in executions on the Exchange with an
average daily share volume per month greater than or equal to 10
million shares. Additionally, Tracking Order Tier 2 currently offers
ETP Holders a credit of $0.0012 per share for Tracking Orders that
result in executions on the Exchange with an average daily share volume
per month between 5 million shares and 9,999,999 shares. Finally,
Tracking Order Tier 3 currently offers ETP Holders a credit of $0.001
per share for Tracking Orders that result in executions on the Exchange
with an average daily share volume per month between 1 million shares
and 4,999,999 shares.\10\
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    \8\ See NYSE Arca Rule 7.31-E(d)(4). A Tracking Order is an
order to buy (sell) with a limit price that is not displayed, does
not route, must be entered in round lots and designated Day, and
trades only with an order to sell (buy) that is eligible to route.
    \9\ See Securities Exchange Act Release No. 60944 (November 5,
2009), 74 FR 58668 (November 13, 2009) (SR-NYSEArca-2009-99). See
also Securities Exchange Act Release No. 66379 (February 10, 2012),
77 FR 9277 (February 16, 2012) (SR-NYSEArca-2012-11).
    \10\ See Securities Exchange Act Release No. 66568 (March 9,
2012), 77 FR 15819 (March 16, 2012) (SR-NYSEArca-2012-17).
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    No ETP Holder has qualified for the Tracking Order Tier 1 and
Tracking Order Tier 2 pricing tiers in the last six months. Given that
the pricing incentives offered under these tiers have not served to
meaningfully increase activity on the Exchange or attract order flow in
any meaningful way, the Exchange proposes to eliminate the Tracking
Order Tier 1 and Tracking Order Tier 2 pricing tiers and remove them
from the Fee Schedule. Given that the Tracking Order functionality
continues to be available on the Exchange, the Exchange proposes to
retain Tracking Order Tier 3, which provides the minimum level of
credit for the use of Tracking Orders on the Exchange. The Exchange
also proposes to amend the volume requirement applicable to current
Tracking Order Tier 3 so that the $0.001 per share credit would be
applicable for Tracking Orders that result in executions on the
Exchange with an average daily volume per month of at least 1 million
shares. Finally, with the proposed elimination of Tracking Order Tier 1
and Tracking Order Tier 2 pricing tiers, the Exchange proposes to
rename current Tracking Order Tier 3 as Tracking Order Tier 1.
    The proposed changes are not otherwise intended to address any
other issues, and the Exchange is not aware of any significant problems
that market participants would have in complying with the proposed
changes.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\11\ in general, and furthers the
objectives of Sections 6(b)(4) and(5) of the Act,\12\ 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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    \11\ 15 U.S.C. 78f(b).
    \12\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange believes that the proposed rule change to eliminate
the Tier 2 credit of $0.0031 per share for orders that provide
liquidity in Tape A and Tape C Securities, and $0.0024 per share for
orders that provide liquidity in Tape B Securities, and eliminate the
Tracking Order Tier 1 and Tracking Order Tier 2 pricing tiers is
reasonable because each of the pricing tiers that are the subject of
this proposed rule change have been underutilized and have generally
not incentivized ETP Holders to bring liquidity and increase trading on
the Exchange. In the last six months, no ETP Holder has availed itself
of the higher Tier 2 credit. Similarly, no ETP Holder has qualified for
Tracking Order Tier 1 and Tracking Order Tier 2 pricing tiers in the
last six months. The Exchange does not anticipate any ETP Holder in the
near future to qualify for any of the tiers that are the subject of
this proposed rule change. The Exchange believes it is reasonable to
eliminate requirements and credits, and even entire pricing tiers, when
such incentives become underutilized. The Exchange believes eliminating
underutilized incentive programs would also simplify the Fee Schedule.
The Exchange further believes that removing reference to the pricing
tiers that the Exchange proposes to eliminate from the Fee Schedule
would also add clarity to the Fee Schedule. The Exchange believes that
eliminating requirements and credits, and even entire pricing tiers,
from the Fee Schedule when such incentives become ineffective is
equitable and not unfairly

discriminatory because the requirements, and credits, and even entire
pricing tiers, would be eliminated in their entirety and would no
longer be available to any ETP Holder.
    For the foregoing 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,\13\ the Exchange
believes that the proposed rule change would not impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act.
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    \13\ 15 U.S.C. 78f(b)(8).
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    Intramarket Competition. The Exchange's proposal to eliminate
certain requirements and credits, and pricing tiers in their entirety,
will not place any undue burden on intramarket competition that is not
necessary or appropriate in furtherance of the purposes of the Act
given that not a single ETP Holder has qualified for any of the credits
under the pricing tiers that are the subject of this proposed rule
change in the past six months. To the extent the proposed rule change
places a burden on competition, any such burden would be outweighed by
the fact that none of the pricing tiers proposed for deletion have
served their intended purpose of incentivizing ETP Holders to more
broadly participate on the Exchange. Moreover, ETP Holders can choose
to trade on other venues to the extent they believe that the credits
provided are too low or the qualification criteria are not attractive.
    Intermarket Competition. The Exchange believes the proposed rule
change does not impose any burden on intermarket competition that is
not necessary or appropriate in furtherance of the purposes of the Act.
The Exchange operates in a highly competitive market in which market
participants can readily choose to send their orders to other exchanges
and off-exchange venues if they deem fee levels at those other venues
to be more favorable. Market share statistics provide ample evidence
that price competition between exchanges is fierce, with liquidity and
market share moving freely from one execution venue to another in
reaction to pricing changes. In such an environment, the Exchange must
continually adjust its fees and rebates to remain competitive with
other exchanges and with off-exchange venues. Because competitors are
free to modify their own fees and credits in response, and because
market participants may readily adjust their order routing practices,
the Exchange does not believe this proposed fee change would impose any
burden on intermarket competition.

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) \14\ of the Act and subparagraph (f)(2) of Rule
19b-4 \15\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
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    \14\ 15 U.S.C. 78s(b)(3)(A).
    \15\ 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) \16\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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    \16\ 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<EMAIL_ADDRESS>Please include
File Number SR-NYSEARCA-2021-60 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-2021-60. 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-2021-60 and should be submitted
on or before August 10, 2021.
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    \17\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-15335 Filed 7-19-21; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: April 29, 2009 (Volume 74, Number 81)]
[Notices]
[Page 19609]
[DOCID:fr29ap09-144]

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SECURITIES AND EXCHANGE COMMISSION

Sunshine Act Meeting

    Notice is hereby given, pursuant to the provisions of the
Government in the Sunshine Act, Public Law 94-409, that the Securities
and Exchange Commission will hold a roundtable to discuss short sale
price tests and short sale circuit breakers generally and in the
context of the Commission's recently proposed amendments to Regulation
SHO. The roundtable will be held on May 5, 2009 beginning at 10 a.m.
    The Roundtable will take place in the Auditorium of the
Commission's headquarters at 100 F Street, NE., Washington, DC. The
roundtable will be open to the public with seating on a first-come,
first-served basis. Doors will open at 9:30 a.m. Visitors will be
subject to security checks.
    For further information, please contact the Office of the Secretary
at<PHONE_NUMBER>.

    Dated: April 24, 2009.
Elizabeth M. Murphy,
Secretary.
[FR Doc. E9-9879 Filed 4-28-09; 8:45 am]