60 Day Notice

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Federal Register / Vol. 86, No. 79 / Tuesday, April 27, 2021 / Notices

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–Phlx–2021–22 and should
be submitted on or before May 18, 2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–08673 Filed 4–26–21; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[SEC File No 270–600, OMB Control No.
3235–0656]

Proposed Collection; Comment
Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736

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Extension:
Rule 17g–7

1 See

CFR 200.30–3(a)(12).
17 CFR 240.17g–1 and 17 CFR 249b.300.

VerDate Sep<11>2014

Dated: April 22, 2021.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–08728 Filed 4–26–21; 8:45 am]

Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the existing collection of information
provided for in Rule 17g-7 under the
Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.).1 The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget for extension
and approval.
Rule 17g–7 contains disclosure
requirements for Nationally Recognized
Statistical Rating Organizations
(‘‘NRSROs’’) including certain
information to be published when
taking a rating action with respect to a
credit rating. Currently, there are 9
credit rating agencies registered as
NRSROs with the Commission. The
Commission estimates that the total
18 17

burden for respondents to comply with
Rule 17g–7 is 626,262.
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information shall have practical utility;
(b) the accuracy of the Commission’s
estimates of the burden of the proposed
collection of information; (c) ways to
enhance the quality, utility, and clarity
of the information on respondents; and
(d) ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Consideration will be given to
comments and suggestions submitted in
writing within 60 days of this
publication.
The Commission may not conduct or
sponsor a collection of information
unless it displays a currently valid
control number. No person shall be
subject to any penalty for failing to
comply with a collection of information
subject to the PRA that does not display
a valid Office of Management and
Budget (OMB) control number.
Please direct your written comments
to: Dave Bottom, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Cynthia
Roscoe, 100 F St NE, Washington, DC
20549 or send an email to: PRA_
[email protected].

18:52 Apr 26, 2021

Jkt 253001

BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[SEC File No 270–645, OMB Control No.
3235–0693]

Proposed Collection; Comment
Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
Extension:
Rule 17g–8 & 9

Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the existing collection of information
provided for in Rule 17g–8 and 17g–9
under the Securities Exchange Act of

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1934 (15 U.S.C. 78a et seq.).1 The
Commission plans to submit this
existing collection of information to the
Office of Management and Budget for
extension and approval.
Rule 17g–8 contains certain
requirements for Nationally Recognized
Statistical Rating Organizations
(‘‘NRSROs’’) to have policies and
procedures with respect to the
procedures and methodologies the
NRSRO uses to determine credit ratings,
with respect to the symbols, numbers, or
scores it uses to denote credit ratings, to
address instances in which a look-back
review determines that a conflict of
interest influenced a credit rating, and
to consider certain prescribed factors for
an effective internal structure. Rule 17g–
9 contains requirements for NRSROs to
ensure that any person employed by an
NRSRO to determine credit ratings
meets standards necessary to produce
accurate ratings. Currently, there are 9
credit rating agencies registered as
NRSROs with the Commission. The
Commission estimates that the total
burden for respondents to comply with
Rule 17g–8 is 1,305 hours and to
comply with Rule 17g–9 is 22,504
hours.
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information shall have practical utility;
(b) the accuracy of the Commission’s
estimates of the burden of the proposed
collection of information; (c) ways to
enhance the quality, utility, and clarity
of the information on respondents; and
(d) ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Consideration will be given to
comments and suggestions submitted in
writing within 60 days of this
publication.
The Commission may not conduct or
sponsor a collection of information
unless it displays a currently valid
control number. No person shall be
subject to any penalty for failing to
comply with a collection of information
subject to the PRA that does not display
a valid Office of Management and
Budget (OMB) control number.
Please direct your written comments
to: Dave Bottom, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Cynthia
Roscoe, 100 F St NE, Washington, DC
20549 or send an email to: PRA_
[email protected].
1 See

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17 CFR 240.17g–1 and 17 CFR 249b.300.

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Federal Register / Vol. 86, No. 79 / Tuesday, April 27, 2021 / Notices
Dated: April 22, 2021.
J. Matthew DeLesDernier,
Assistant Secretary.

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.

[FR Doc. 2021–08729 Filed 4–26–21; 8:45 am]
BILLING CODE 8011–01–P

A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change

SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–91626; File No. SR–NYSE–
2021–22]

Self-Regulatory Organizations; New
York Stock Exchange, LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend Its
Price List
April 21, 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 April 1,
2021, 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 selfregulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.

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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 (1) lower the new firm and
the annual trading license fees and (2)
introduce the NYSE Membership OnRamp Program, which offers discounted
membership fees, port fees and market
data fees for up to 18 months for new
member organizations. The Exchange
proposes to implement the fee changes
effective April 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
1 15

U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15

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18:52 Apr 26, 2021

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1. Purpose
The Exchange proposes to (1) lower
the new firm and the annual trading
license fees and (2) introduce the NYSE
Membership On-Ramp Program (the
‘‘Program’’), which offers discounted
membership fees, port fees and market
data fees for up to 18 months for new
member organizations.
The purpose of this filing is to
encourage smaller, retail-oriented
market participants that are not
currently NYSE member organizations
to become member organizations by
discounting certain fixed costs
associated with NYSE membership.
The Exchange proposes to implement
the fee changes effective April 1, 2021.
Background
Current Market and Competitive
Environment
The Exchange operates in a highly
competitive market. The Commission
has repeatedly expressed its preference
for competition over regulatory
intervention in determining prices,
products, and services in the securities
markets. In Regulation NMS, the
Commission highlighted the importance
of market forces in determining prices
and SRO revenues and, also, recognized
that current regulation of the market
system ‘‘has been remarkably successful
in promoting market competition in its
broader forms that are most important to
investors and listed companies.’’ 4
While Regulation NMS has enhanced
competition, it has also fostered a
‘‘fragmented’’ market structure where
trading in a single stock can occur
across multiple trading centers. When
multiple trading centers compete for
order flow in the same stock, the
Commission has recognized that ‘‘such
competition can lead to the
fragmentation of order flow in that
stock.’’ 5 Indeed, equity trading is
currently dispersed across 16
exchanges,6 31 alternative trading
4 See

Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37495, 37499 (June 29, 2005)
(S7–10–04) (Final Rule) (‘‘Regulation NMS’’).
5 See Securities Exchange Act Release No. 61358,
75 FR 3594, 3597 (January 21, 2010) (File No. S7–
02–10) (Concept Release on Equity Market
Structure).
6 See Cboe Global Markets, U.S. Equities Market
Volume Summary, available at http://

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22287

systems,7 and numerous broker-dealer
internalizers and wholesalers, all
competing for order flow. Based on
publicly available information, no single
exchange has more than 20% market
share.8 Therefore, no exchange
possesses significant pricing power in
the execution of equity order flow. More
specifically, the Exchange’s market
share of trading in Tape A, B and C
securities combined is less than 12%.
The Exchange believes that the evershifting market share among the
exchanges from month to month
demonstrates that market participants
can move order flow, or discontinue or
reduce use of certain categories of
products, in response to fee changes.
Accordingly, competitive forces
constrain exchange transaction fees that
relate to orders that would provide
liquidity on an exchange.
Proposed Rule Change
The Exchange proposes to modify,
and discount certain fixed costs related
to Exchange membership in order to
incentivize smaller, retail-oriented
market participants to consider NYSE
membership. Specifically, as discussed
more fully below, the Exchange
proposes to lower the new firm fee for
all member organizations and charge the
annual trading license fee in 12 monthly
installments, which will slightly reduce
the current fees. In addition, the
Exchange proposes to introduce a new
NYSE Membership On-Ramp Program
(the ‘‘Program’’) that offers significant
discounts for up to 18 months on
membership fees, port fees and market
data fees for new member organizations,
subject to specific restrictions.
Reduction of New Firm Fee
The Exchange currently charges a
New Firm Fee ranging from $2,500 to
$20,000, depending on the type of firm,
which is charged per application for any
broker-dealer that applies to be
approved as a member organization. The
Exchange proposes to lower the New
Firm Fees as follows:
• The fee for carrying firms would be
reduced from the current $20,000 to
$4,000;
• The fee for introducing firms would
be reduced from the current $7,500 to
$4,000; and
markets.cboe.com/us/equities/market_share/. See
generally https://www.sec.gov/fast-answers/
divisionsmarketregmrexchangesshtml.html.
7 See FINRA ATS Transparency Data, available at
https://otctransparency.finra.org/otctransparency/
AtsIssueData. A list of alternative trading systems
registered with the Commission is available at
https://www.sec.gov/foia/docs/atslist.htm.
8 See Cboe Global Markets U.S. Equities Market
Volume Summary, available at http://
markets.cboe.com/us/equities/market_share/.

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