Voglio sapere a riguardo di…

Federal Register / Vol. 86, No. 34 / Tuesday, February 23, 2021 / Notices in order to qualify for the proposed new pricing tier.
Non-Substantive Change The Exchange proposes to make a non-substantive change by deleting the words to the Book, from the Book, and outside the Book from the Fee Schedule. Specifically, in the context of a credit provided by the Exchange, a fee charged by the Exchange, or routing fees charged by the Exchange, the Fee Schedule currently utilizes the words to the Book, from the Book, and outside the Book, respectively. The Exchange believes these phrases are superfluous. ETP Holders understand that when they provide liquidity, they provide it to the Book. And when they take liquidity, they take it from the Book. Similarly, when their orders are routed, they are routed outside the Book. Therefore, the Exchange proposes to delete these three phrases from the Fee Schedule. The Exchange believes this non-substantive change would streamline the Fee Schedule and promote clarity.
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.

broader forms that are most important to investors and listed companies. 17
The Exchange believes that the evershifting market share among the exchanges from month to month demonstrates that market participants can shift order flow, or discontinue to reduce use of certain categories of products, in response to fee changes.
With respect to non-marketable orders that provide liquidity on an Exchange, ETP Holders can choose from any one of the 16 currently operating registered exchanges to route such order flow.
Accordingly, competitive forces reasonably constrain exchange transaction fees that relate to orders that would provide liquidity on an exchange. Stated otherwise, changes to exchange transaction fees can have a direct effect on the ability of an exchange to compete for order flow.

Tape B Tier 3
Given this competitive environment, the proposed rule change represents a reasonable attempt to attract additional order flow to the Exchange. In particular, the Exchange believes the proposed introduction of the Tape B
Tier 3 pricing tier is reasonable because it provides ETP Holders affiliated with an OTP Holder or OTP Firm that has a market maker account on NYSE Arca Options with an opportunity to qualify for the Tape B Tier 3 credit through 2. Statutory Basis equity and options orders. The The Exchange believes that the Exchange believes that the proposed proposed rule change is consistent with pricing tier utilizing a lower equity Section 6b of the Act,15 in general, and adding volume requirement coupled furthers the objectives of Sections with a minimum options volume 6b4 and 5 of the Act,16 in particular, requirement is reasonable because the because it provides for the equitable proposal provides firms with greater allocation of reasonable dues, fees, and flexibility to reach volume tiers across other charges among its members, asset classes, thereby creating an added issuers and other persons using its incentive for ETP Holders affiliated with facilities and does not unfairly an OTP Holder or OTP Firm that has a discriminate between customers, market maker account on NYSE Arca issuers, brokers or dealers.
Options to bring additional order flow The Proposed Fee Change Is Reasonable to a public exchange, consequently encouraging greater participation and As discussed above, the Exchange liquidity.
operates in a highly fragmented and The Exchange notes that volumecompetitive market. The Commission based incentives and discounts have has repeatedly expressed its preference been widely adopted by exchanges, for competition over regulatory including the Exchange. They also intervention in determining prices, provide additional benefits or discounts products, and services in the securities that are reasonably related to the value markets. Specifically, in Regulation of the Exchanges market quality and NMS, the Commission highlighted the associated higher levels of market importance of market forces in activity, such as higher levels of determining prices and SRO revenues liquidity provision and/or growth and, also, recognized that current patterns. Additionally, as noted above, regulation of the market system has the Exchange operates in a highly been remarkably successful in competitive market. The Exchange is promoting market competition in its one of many venues and off-exchange venues to which market participants 15 15
16 15

U.S.C. 78fb.
U.S.C. 78fb4 and 5.

VerDate Sep<11>2014

18:36 Feb 22, 2021

17 See
Jkt 253001

PO 00000

Regulation NMS, 70 FR at 37499.

Frm 00111

Fmt 4703

Sfmt 4703

11029

may direct their order flow, and it represents a small percentage of the overall market. Competing exchanges offer similar tiered pricing structures to that of the Exchange, including schedules of rebates and fees that apply based on members achieving certain volume thresholds across asset classes.
Moreover, the Exchange believes the proposed pricing tier is a reasonable means to encourage ETP Holders affiliated with an OTP Holder or OTP
Firm that has a market maker account on NYSE Arca Options to increase their liquidity on the Exchange and their participation on NYSE Arca Options.
The Exchange believes adopting the proposed pricing tier may encourage those ETP Holders who could not previously achieve the requirements to qualify for Tape B credits to increase their order flow on both the Exchange and on NYSE Arca Options. Increased liquidity benefits all investors by deepening the Exchanges liquidity pool, offering additional flexibility for all investors to enjoy cost savings, supporting the quality of price discovery, promoting market transparency and improving investor protection.
Non-Substantive Change The Exchange believes that the proposed rule change to delete the phrases to the Book, from the Book, and outside the Book from the Fee Schedule is reasonable because each of the phrases are superfluous and extraneous. As noted above, ETP
Holders understand that when they provide liquidity, they provide it to the Book, when they take liquidity, they take it from the Book, and when their orders are routed, they are routed outside the Book. The Exchange believes it is reasonable to delete these phrases in an effort to streamline the Fee Schedule. The Exchange believes deleting these phrases would also promote clarity to the Fee Schedule and simplify the Fee Schedule.
The Proposed Fee Change Is an Equitable Allocation of Fees and Credits Tape B Tier 3
The Exchange believes the proposed rule change to adopt a new pricing tier equitably allocates its fees and credits among market participants because it is reasonably related to the value of the Exchanges market quality associated with higher equities and options volume.
The proposed pricing tier would be available to ETP Holders that are affiliated with OTP Holders or OTP
Firms that have a market maker account
E:FRFM23FEN1.SGM

23FEN1