[Federal Register Volume 85, Number 76 (Monday, April 20, 2020)]
[Notices]
[Pages 21899-21901]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-08209]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-88630; File No. SR-NYSE-2020-26]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend its Price List To Eliminate Certain Obsolete Fees
April 14, 2020.
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 March 31, 2020, New York Stock Exchange LLC (``NYSE'' 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 its Price List to eliminate certain
obsolete fees. The Exchange proposes to implement the fee changes
effective April 1, 2020. 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.
[[Page 21900]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend its Price List to eliminate certain
obsolete fees. The Exchange proposes to implement the fee changes
effective April 1, 2020.
Proposed Rule Change
The Exchange proposes to eliminate obsolete fees for trading Floor
booth reservations, radio paging services and cellular phones, as
follows.
Next Generation Trading Floor Reservation Fee
The Exchange offers a fee of $12,000 per position, subject to a cap
of $240,000 per member organization, to reserve Next Generation Trading
Floor booth trading positions.\4\ The fee was adopted in 2010 on
connection with the creation of the Exchange's ``Next Generation
Trading Floor.'' The Exchange has not charged the fee in over seven
years. The Exchange accordingly proposes to delete the Next Generation
Trading Floor Reservation Fee as obsolete.
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\4\ See Securities Exchange Act Release No. 61672 (March 8,
2010), 75 FR 12321 (March 15, 2010) (SR-NYSE-2010-16).
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Radio Paging Service
The Exchange offers radio paging service fees to support Floor
broker beepers of $408.50 for the unit and first channel and $139.75
for each additional channel. Floor brokers no longer use beepers, and
the Exchange has not charged the fee in over two years. The Exchange
accordingly proposes to delete the radio paging service fee as
obsolete.
Cellular Phones
The Exchange offers an annual ongoing maintenance fee for using
Exchange-approved and provided portable phones on the trading Floor of
$240.00 per phone, plus sales tax. In 2017, the Exchange amended Rule
36 to permit Floor brokers to use non-Exchange approved and provided
portable phones properly registered with the Exchange on the trading
Floor.\5\ Exchange approved and provided portable phones were disabled
as of September 18, 2017,\6\ and the fee has not been charged since
that time. The Exchange accordingly proposes to delete the annual
portable phone maintenance fee as obsolete.
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\5\ See Securities Exchange Act Release No. 81103 (July 7,
2017), 82 FR 32396 (July 13, 2017) (SR-NYSE-2017-07).
\6\ See NYSE RB 17-03, dated July 21, 2017, available at https://www.nyse.com/publicdocs/nyse/markets/nyse/rule-interpretations/2017/NYSE%20RB%2017-03%20%20Date%20Revision.pdf.
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The proposed change is not otherwise intended to address 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,\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, and because it is designed to
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general, to protect investors and the public
interest.
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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(4) & (5).
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The Proposed Rule Change Is Reasonable
The Exchange believes that it is reasonable to delete fees from the
Price List because the related services are no longer offered and the
fees are accordingly no longer charged. Deleting obsolete fees for
services the Exchange no longer offers would add greater clarity of the
Exchange's rules and enable market participants to more easily navigate
the Exchange's Price List.
The Proposed Rule Change Is an Equitable Allocation of Fees
The Exchange believes the proposal equitably allocates fees among
its market participants because elimination of obsolete fees would
apply to all similarly-situated member organizations on an equal basis.
All such member organizations would continue to be subject to the same
fee structure, and access to the Exchange's market would continue to be
offered on fair and nondiscriminatory terms.
The Proposed Change Is Not Unfairly Discriminatory and Would Protect
Investors and the Public Interest
The Exchange believes that the proposal is not unfairly
discriminatory. The proposal is not unfairly discriminatory because it
neither targets nor will it have a disparate impact on any particular
category of market participant. The proposal does not permit unfair
discrimination because elimination of obsolete fees would apply to all
similarly situated member organizations on an equal basis. In addition,
the Exchange believes that the proposed elimination of obsolete fees
would remove impediments to and perfect the mechanism of a free and
open market by eliminating references to services that are no longer
offered, thereby improving the clarity of the Exchange's rules and
enabling market participants to more easily navigate the Exchange's
Price List. The Exchange also believes that the proposed change would
protect investors and the public interest because the deletion of
obsolete fees would make the Price List more accessible and transparent
and facilitate market participants' understanding of the fees charged
for services currently offered by the Exchange.
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,\9\ 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. Instead, as discussed above, the proposal relates
solely to elimination of obsolete fees and, as such, would not have any
impact on intra- or inter-market competition because the proposed
change is solely designed to accurately reflect the services that the
Exchange currently offers, thereby adding clarity to the Price List.
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\9\ 15 U.S.C. 78f(b)(8).
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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,
[[Page 21901]]
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 [email protected]. Please include
File Number SR-NYSE-2020-26 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-NYSE-2020-26. 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-NYSE-2020-26, and should be submitted on
or before May 11, 2020.
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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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-08209 Filed 4-17-20; 8:45 am]
BILLING CODE 8011-01-P