80_FR_29877 80 FR 29778 - Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of Filing of a Proposed Rule Change, and Amendment No. 1 Thereto, To Amend Rule 11.2 To State That EDGX Exchange, Inc. Will Not Designate for Trading Any Security Admitted to Unlisted Trading Privileges on the Exchange Unless That Security Satisfies Certain Liquidity Requirements

80 FR 29778 - Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of Filing of a Proposed Rule Change, and Amendment No. 1 Thereto, To Amend Rule 11.2 To State That EDGX Exchange, Inc. Will Not Designate for Trading Any Security Admitted to Unlisted Trading Privileges on the Exchange Unless That Security Satisfies Certain Liquidity Requirements

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 99 (May 22, 2015)

Page Range29778-29781
FR Document2015-12412

Federal Register, Volume 80 Issue 99 (Friday, May 22, 2015)
[Federal Register Volume 80, Number 99 (Friday, May 22, 2015)]
[Notices]
[Pages 29778-29781]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-12412]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74985; File No. SR-EDGX-2015-21]


Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of 
Filing of a Proposed Rule Change, and Amendment No. 1 Thereto, To Amend 
Rule 11.2 To State That EDGX Exchange, Inc. Will Not Designate for 
Trading Any Security Admitted to Unlisted Trading Privileges on the 
Exchange Unless That Security Satisfies Certain Liquidity Requirements

May 18, 2015.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on May 5, 2015, EDGX Exchange, Inc. (the ``Exchange'' or ``EDGX'') 
filed with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I, II, and III below, which 
Items have been prepared by the Exchange. On May 15, 2015, BATS filed 
Amendment No. 1 to the proposal. Amendment No. 1 amended and replaced 
the original proposal in its entirety. The Commission is publishing 
this notice to solicit comments on the proposed rule change, as 
modified by Amendment No. 1, from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange filed a proposal to amend Rule 11.2 to state that the 
Exchange will not designate for trading any security admitted to 
unlisted trading privileges on the Exchange unless that security 
satisfies certain liquidity requirements, as further described below.
    The text of the proposed rule change is available at the Exchange's 
Web site at www.batstrading.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 Exchange 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 these 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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    With limited exception, the current equity market structure under 
Regulation NMS applies the same rules with respect to, among other 
things, tick sizes, order protection, locked and crossed markets, and 
access fees to all exchange-listed securities. The Exchange believes 
that Regulation NMS, along with technological advancements, has 
produced great efficiencies to the equity market, resulting in intense 
competition between exchanges and broker-dealers. The Exchange believes 
the net result for most exchange-listed securities has been decreases 
in transaction costs, including decreases in explicit commissions and 
the narrowing of effective spreads investors pay to enter and exit 
positions. However, the Exchange recognizes that not all exchange-
listed securities have benefited to the same extent under the current 
one-size fits all approach to the equity market. In particular, 
investors continue to experience difficulty trading illiquid 
securities, including paying higher effective spreads and difficulty 
sourcing liquidity across multiple exchanges and non-exchange trading 
venues while minimizing market impact.
    The Exchange believes the market quality of securities that are 
today illiquid could benefit from a concentration of quoted liquidity 
on the listing exchange. By concentrating quoted liquidity on the 
listing exchange, for the reasons discussed below, the Exchange 
believes liquidity providers will quote more competitively, resulting 
in more efficient price formation and a

[[Page 29779]]

narrower national best bid or offer (``NBBO''), as well as the display 
of more quoted size at price levels outside the NBBO (``depth of 
book''). In turn, the Exchange believes that these enhancements to 
market quality could ultimately increase investor and member interest 
in such securities resulting in greater average daily trading volume. 
As such, as described below, the Exchange is proposing to adopt rules 
to clarify the circumstances under which the Exchange would voluntarily 
provide advance notice to the industry that it is ceasing to quote and 
trade certain specific illiquid securities until such securities meet 
and sustain an average daily volume threshold indicative of increased 
liquidity.
    In particular, the Exchange proposes to amend Rule 11.2 to state 
that the Exchange may determine not to designate for trading any 
security admitted to unlisted trading privileges on the Exchange if 
that security falls below certain consolidated average daily volume 
requirements, as further described below. Rule 11.2 currently states 
that any class of securities listed or admitted to unlisted trading 
privileges on the Exchange pursuant to Chapter XIV of the Exchange's 
rules \3\ shall be eligible to become designated for trading on the 
Exchange. The Rule further states that all securities designated for 
trading are eligible for odd-lot, round-lot and mixed-lot executions, 
unless otherwise indicated by the Exchange or limited pursuant to 
Exchange rules. The Exchange proposes to include these existing 
provisions of Rule 11.2 within subparagraph (a) of the proposed rule in 
order to separately propose additional provisions under subparagraphs 
(b), (c), and (d).
---------------------------------------------------------------------------

    \3\ Chapter XIV of the Exchange's rules discusses the securities 
eligible to be designated for trading on the Exchange. Exchange Rule 
14.1, in particular, states that the Exchange may extend unlisted 
trading privileges to any Equity Security (as defined in the Rule) 
that is listed on another national securities exchange or with 
respect to which unlisted trading privileges may otherwise be 
extended in accordance with Section 12(f) of the Exchange Act.
---------------------------------------------------------------------------

    The Exchange proposes to add new subparagraph (b) to Rule 11.2, 
which would state that the Exchange may determine not to designate for 
trading any security admitted to unlisted trading privileges on the 
Exchange pursuant to Chapter XIV of the Exchange's rules when that 
security's consolidated average daily trading volume is equal to or 
less than 2,500 shares during the preceding 90 calendar days.\4\ The 
Exchange further proposes to add new subparagraph (c) to Rule 11.2, 
which would state that any security not designated for trading by the 
Exchange pursuant to subparagraph (b) of this Rule may be designated 
for trading by the Exchange if its consolidated average daily trading 
volume exceeds 5,000 shares over any 90 calendar day period since the 
security was not designated for trading pursuant to subparagraph (b). 
The Exchange also proposes to make clear that new subparagraph (c) is 
not intended to limit the Exchange's ability to designate any security 
for trading pursuant to the Exchange's general authority under 
subparagraph (a) of Rule 11.2. The Exchange also proposes to add new 
subparagraph (d) to Rule 11.2, which would require the Exchange to 
provide notice at least one trading day in advance of any securities it 
is making unavailable for trading pursuant to subparagraph (b) of Rule 
11.2, and any securities it is making available for trading under 
subparagraph (c) of Rule 11.2.
---------------------------------------------------------------------------

    \4\ Based on internal statistics, the Exchange anticipates that 
limiting the rule's applicability to those securities with a 
consolidated average daily trading volume of 2,500 shares or less 
during the preceding 90 calendar days will affect approximately 700 
securities.
---------------------------------------------------------------------------

    While the Exchange is proposing to retain discretion over whether 
it will in fact determine not to quote and trade securities that meet 
the criteria described in proposed new subparagraphs (b) and (c) of 
Rule 11.2, the Exchange notes that nothing in its rules or applicable 
securities regulation requires it to designate for trading any class of 
securities listed or admitted to unlisted trading privileges on the 
Exchange pursuant to Chapter XIV of the Exchange's rules. The Exchange 
believes that adopting such a provision in its rules could enhance 
market quality for securities falling below the consolidated average 
daily volume threshold by facilitating the concentration of quoted 
liquidity on the listing exchange.\5\ In determining whether to 
exercise its discretion under proposed new subparagraphs (b) and (c) of 
Rule 11.2, the Exchange would consider such factors as member and 
investor feedback as well as whether the other non-listing exchanges 
have decided to cease quoting and trading in the effected securities. 
The Exchange further believes that adoption of a rule requiring it to 
provide advance notice to its members of any securities the Exchange is 
choosing not to trade under proposed new subparagraph (b) of Rule 11.2 
and any securities it is making available for trading pursuant to 
proposed new subparagraph (c) of Rule 11.2 will help avoid confusion by 
providing transparency and certainty to members and investors regarding 
the securities the Exchange is or is not designating for quoting and 
trading on the Exchange.
---------------------------------------------------------------------------

    \5\ The Exchange understands that the EDGA Exchange, Inc., BATS 
Exchange, Inc., and BATS Y-Exchange, Inc. will separately file 
substantially similar proposed rule changes with the Commission.
---------------------------------------------------------------------------

    The Exchange believes that limiting the impact of paragraph (b) of 
the proposed rule change to securities with a consolidated average 
daily trading volume that is equal to or less than 2,500 shares during 
the preceding 90 calendar days is reasonable because such securities 
tend to be illiquid, as reflected by larger quoted and effective 
spreads, with smaller quoted size at both the NBBO and throughout the 
depth of book than more actively-traded securities. Similarly, the 
Exchange believes that considering to designate for trading those 
securities that have not been trading on the Exchange pursuant to 
paragraph (b) once such securities have a consolidated average daily 
trading volume that exceeds 5,000 shares over a 90 calendar day period 
since the security was not designated for trading pursuant to proposed 
subparagraph (b) of Rule 11.2 is reasonable because such activity may 
demonstrate that such securities are now trading more effectively. The 
Exchange believes that its proposed rule changes may facilitate an 
improvement in market quality for the effected securities.\6\ In 
particular, the Exchange believes that by concentrating the quoted 
liquidity in such securities on the listing exchange, liquidity 
providers will be incented to quote on such exchange more 
competitively, resulting in narrower bid-ask spreads and greater quoted 
depth of book. The Exchange believes liquidity providers would be so 
incented because concentrating the quoted liquidity in such securities 
on the listing exchange would: (i) Reduce liquidity providers' risk of 
adverse selection inherent in quoting in a fragmented market, (ii) 
provide greater certainty of execution on the one

[[Page 29780]]

exchange at which liquidity providers are quoting, and (iii) enhance 
competition for order book priority at the NBBO and throughout the 
depth of book. Although the Exchange would be voluntarily foregoing 
potential market share by not quoting and trading securities subject to 
the Rule, the Exchange believes the aforementioned enhancements in 
market quality may increase investor interest in trading such 
securities, which in turn would generate increased volume and 
ultimately benefit the Exchange once such securities become eligible 
for trading on the Exchange under the rule in the future.
---------------------------------------------------------------------------

    \6\ Based on an internal study, the Exchange believes a majority 
of the securities that would be covered by the Rule's criteria are 
small-cap companies (i.e., companies with a market capitalization of 
$250 million or less). Suggesting that the current U.S. equity 
market often fails to provide sufficient liquidity for the 
securities of small-cap companies, the Commission's Advisory 
Committee on Small and Emerging Companies (``Advisory Committee'') 
recommended to the Commission concentrating the market for such 
securities through the creation of a separate U.S. equity market. 
See Recommendations Regarding Separate U.S. Equity Market for 
Securities of Small and Emerging Companies, by the Advisory 
Committee on Small and Emerging Companies, dated February 1, 2013. 
The Advisory Committee also stated that other actions with respect 
to trading venues may also be warranted to facilitate liquidity in 
small and emerging companies. Id.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule changes are consistent 
with Section 6(b) of the Securities Exchange Act of 1934 (the ``Act'') 
\7\ and further the objectives of Section 6(b)(5) of the Act \8\ 
because they are 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, to foster cooperation and 
coordination with persons engaged in facilitating transactions in 
securities, and, in general, to protect investors and the public 
interest.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange notes that nothing in its rules or any applicable 
securities regulation requires it to designate for trading any class of 
securities listed or admitted to unlisted trading privileges on the 
Exchange pursuant to Chapter XIV of the Exchange's rules. However, the 
Exchange believes adopting a rule to clarify the circumstances under 
which the Exchange would voluntarily provide advance notice to the 
industry that it is ceasing to quote and trade certain specific 
illiquid securities until such securities meet and sustain a 
consolidated average daily volume threshold indicative of increased 
liquidity would promote just and equitable principles of trade, remove 
impediments to and perfect the mechanism of a free and open market and 
a national market system by facilitating the concentration of displayed 
liquidity on the listing exchange for effected securities, which the 
Exchange believes could enhance the market quality of such 
securities.\9\ The Exchange believes that concentrating displayed 
liquidity on the listing exchange in certain illiquid securities may 
enhance market quality of such securities by enabling liquidity 
providers to more efficiently form competitive prices at the NBBO, and 
to provide greater quoted depth of book. In addition, the Exchange 
believes that if displayed liquidity is concentrated on the listing 
exchange in such securities, the listing exchange may have flexibility 
to innovate with alternative market structures, such as variable tick 
sizes or periodic batch auctions that are not currently possible under 
Regulation NMS when multiple exchanges are quoting and trading the 
securities, and which may further enhance the market quality of the 
effected illiquid securities.\10\
---------------------------------------------------------------------------

    \9\ See supra note 6.
    \10\ The Exchange is not proposing or advocating any form of 
trade-at prohibition, which, depending on its various iterations, 
would generally act to prevent trading off-exchange without first 
executing against all equal or better priced protected quotations. 
Rather, the Exchange is proposing and advocating a reduction in the 
number of displayed venues on which certain illiquid securities will 
be quoted and traded, which the Exchange believes will concentrate 
the quoting activity serving to enhance quote competition and 
thereby increase market quality by narrowing the NBBO and increasing 
the quoted depth of book for effected securities, without regard to 
off-exchange trading.
---------------------------------------------------------------------------

    The proposed rule change promotes just and equitable principles of 
trade because it will provide certainty and transparency to members and 
investors with respect to which securities the Exchange will or will 
not designate for quoting and trading on the Exchange, thereby avoiding 
confusion.

(B) Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule changes will 
result in any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act. The Exchange 
notes that nothing in its rules or any applicable securities regulation 
require it to designate for trading any class of securities listed or 
admitted to unlisted trading privileges on the Exchange pursuant to 
Chapter XIV of the Exchange's rules. The Exchange believes enacting 
such a provision in its rules would not impose a burden on competition 
that is not necessary or appropriate in furtherance of the purposes of 
the Act. While the Exchange will be voluntarily foregoing potential 
market share by not quoting and trading securities subject to the rule, 
the Exchange believes the proposal will enhance market quality in such 
securities by increasing quoting competition among liquidity providers 
on the listing exchange, which will result in better prices at the NBBO 
and greater depth of book. The Exchange further believes these 
enhancements in market quality may increase investor interest in 
trading such securities, which in turn would improve competition by 
generating increased volume which would also ultimately benefit the 
Exchange once such securities become eligible for trading on the 
Exchange under the rule in the future.

(C) Self-Regulatory Organization's Statement on Comments on the 
Proposed Rule Change Received From Members, Participants or Others

    The Exchange has neither solicited nor received written comments on 
the proposed rule changes.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Within 45 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which the Exchange consents, the Commission will: (a) By order approve 
or disapprove such proposed rule change, or (b) institute proceedings 
to determine whether the proposed rule change should be disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change, as modified by Amendment No. 1, 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-EDGX-2015-21 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-EDGX-2015-21. 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 Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements

[[Page 29781]]

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 Web site 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 will also be available for inspection 
and copying at the principal office of the Exchange. All comments 
received will be posted without change; the Commission does not edit 
personal identifying information from submissions. You should submit 
only information that you wish to make available publicly. All 
submissions should refer to File Number SR-EDGX-2015-21 and should be 
submitted on or before June 12, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-12412 Filed 5-21-15; 8:45 am]
BILLING CODE 8011-01-P



                                                    29778                            Federal Register / Vol. 80, No. 99 / Friday, May 22, 2015 / Notices

                                                    placed within the discretion of the then-               aggregate advisory fee rate payable by                  the Commission’s Public Reference
                                                    existing Independent Board Members.                     the Sub-Advised Series will be                          Room.
                                                       7. Independent legal counsel, as                     submitted to the Sub-Advised Series’
                                                    defined in rule 0–1(a)(6) under the Act,                shareholders for approval.                              II. Self-Regulatory Organization’s
                                                    will be engaged to represent the                                                                                Statement of the Purpose of, and
                                                                                                              For the Commission, by the Division of                Statutory Basis for, the Proposed Rule
                                                    Independent Board Members. The                          Investment Management, under delegated
                                                    selection of such counsel will be within                authority.                                              Change
                                                    the discretion of the then existing                     Robert W. Errett,                                         In its filing with the Commission, the
                                                    Independent Board Members.                              Deputy Secretary.
                                                       8. The Adviser will provide the                                                                              Exchange included statements
                                                    Board, no less frequently than quarterly,
                                                                                                            [FR Doc. 2015–12381 Filed 5–21–15; 8:45 am]             concerning the purpose of and basis for
                                                    with information about the profitability                BILLING CODE 8011–01–P                                  the proposed rule change and discussed
                                                    of the Adviser on a per Sub-Advised                                                                             any comments it received on the
                                                    Series basis. The information will reflect                                                                      proposed rule change. The text of these
                                                                                                            SECURITIES AND EXCHANGE                                 statements may be examined at the
                                                    the impact on profitability of the hiring               COMMISSION
                                                    or termination of any sub-adviser during                                                                        places specified in Item IV below. The
                                                    the applicable quarter.                                 [Release No. 34–74985; File No. SR–EDGX–                Exchange has prepared summaries, set
                                                       9. Whenever a sub-adviser is hired or                2015–21]                                                forth in Sections A, B, and C below, of
                                                    terminated, the Adviser will provide the                                                                        the most significant parts of such
                                                    Board with information showing the                      Self-Regulatory Organizations; EDGX                     statements.
                                                    expected impact on the profitability of                 Exchange, Inc.; Notice of Filing of a
                                                    the Adviser.                                            Proposed Rule Change, and                               (A) Self-Regulatory Organization’s
                                                       10. Whenever a sub-adviser change is                 Amendment No. 1 Thereto, To Amend                       Statement of the Purpose of, and
                                                    proposed for a Sub-Advised Series with                  Rule 11.2 To State That EDGX                            Statutory Basis for, the Proposed Rule
                                                    an Affiliated Sub-Adviser or a Wholly-                  Exchange, Inc. Will Not Designate for                   Change
                                                    Owned Sub-Adviser, the Board,                           Trading Any Security Admitted to
                                                                                                            Unlisted Trading Privileges on the                      1. Purpose
                                                    including a majority of the Independent
                                                    Board Members, will make a separate                     Exchange Unless That Security                              With limited exception, the current
                                                    finding, reflected in the Board minutes,                Satisfies Certain Liquidity                             equity market structure under
                                                    that such change is in the best interests               Requirements                                            Regulation NMS applies the same rules
                                                    of the Sub-Advised Series and its                       May 18, 2015.                                           with respect to, among other things, tick
                                                    shareholders and does not involve a                        Pursuant to Section 19(b)(1) of the                  sizes, order protection, locked and
                                                    conflict of interest from which the                     Securities Exchange Act of 1934 (the                    crossed markets, and access fees to all
                                                    Adviser or the Affiliated Sub-Adviser or                ‘‘Act’’),1 and Rule 19b–4 thereunder,2                  exchange-listed securities. The
                                                    Wholly-Owned Sub-Adviser derives an                     notice is hereby given that on May 5,                   Exchange believes that Regulation NMS,
                                                    inappropriate advantage.                                2015, EDGX Exchange, Inc. (the                          along with technological advancements,
                                                       11. No director or officer of a Sub-                 ‘‘Exchange’’ or ‘‘EDGX’’) filed with the                has produced great efficiencies to the
                                                    Advised Series, or director or officer of               Securities and Exchange Commission                      equity market, resulting in intense
                                                    the Adviser, will own directly or                       (‘‘Commission’’) the proposed rule                      competition between exchanges and
                                                    indirectly (other than through a pooled                 change as described in Items I, II, and                 broker-dealers. The Exchange believes
                                                    investment vehicle that is not controlled               III below, which Items have been                        the net result for most exchange-listed
                                                    by such person) any interest in a Sub-                  prepared by the Exchange. On May 15,                    securities has been decreases in
                                                    Adviser, except for (i) ownership of                    2015, BATS filed Amendment No. 1 to                     transaction costs, including decreases in
                                                    interests in the Adviser or any entity,                 the proposal. Amendment No. 1                           explicit commissions and the narrowing
                                                    other than a Wholly-Owned Sub-                          amended and replaced the original                       of effective spreads investors pay to
                                                    Adviser that controls, is controlled by,                proposal in its entirety. The                           enter and exit positions. However, the
                                                    or is under common control with the                     Commission is publishing this notice to                 Exchange recognizes that not all
                                                    Adviser; or (ii) ownership of less than                 solicit comments on the proposed rule                   exchange-listed securities have
                                                    1% of the outstanding securities of any                 change, as modified by Amendment No.                    benefited to the same extent under the
                                                    class of equity or debt of a publicly                   1, from interested persons.                             current one-size fits all approach to the
                                                    traded company that is either a Sub-                                                                            equity market. In particular, investors
                                                    Adviser or an entity that controls, is                  I. Self-Regulatory Organization’s
                                                                                                            Statement of the Terms of Substance of                  continue to experience difficulty trading
                                                    controlled by, or is under common                                                                               illiquid securities, including paying
                                                    control with a Sub-Adviser.                             the Proposed Rule Change
                                                                                                                                                                    higher effective spreads and difficulty
                                                       12. Each Sub-Advised Series will                        The Exchange filed a proposal to                     sourcing liquidity across multiple
                                                    disclose the Aggregate Fee Disclosure in                amend Rule 11.2 to state that the                       exchanges and non-exchange trading
                                                    its registration statement.                             Exchange will not designate for trading                 venues while minimizing market
                                                       13. In the event the Commission                      any security admitted to unlisted                       impact.
                                                    adopts a rule under the Act providing                   trading privileges on the Exchange
                                                    substantially similar relief to that in the             unless that security satisfies certain                     The Exchange believes the market
                                                    order requested in the application, the                                                                         quality of securities that are today
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                                                                            liquidity requirements, as further
                                                    requested order will expire on the                      described below.                                        illiquid could benefit from a
                                                    effective date of that rule.                               The text of the proposed rule change                 concentration of quoted liquidity on the
                                                       14. Any new Sub-Advisory                             is available at the Exchange’s Web site                 listing exchange. By concentrating
                                                    Agreement or any amendment to a Sub-                    at www.batstrading.com, at the                          quoted liquidity on the listing exchange,
                                                    Advised Series’ existing Investment                     principal office of the Exchange, and at                for the reasons discussed below, the
                                                    Management Agreement or Sub-                                                                                    Exchange believes liquidity providers
                                                    Advisory Agreement that directly or                       1 15   U.S.C. 78s(b)(1).                              will quote more competitively, resulting
                                                    indirectly results in an increase in the                  2 17   CFR 240.19b–4.                                 in more efficient price formation and a


                                               VerDate Sep<11>2014   19:31 May 21, 2015   Jkt 235001   PO 00000   Frm 00177     Fmt 4703   Sfmt 4703   E:\FR\FM\22MYN1.SGM   22MYN1


                                                                                      Federal Register / Vol. 80, No. 99 / Friday, May 22, 2015 / Notices                                                     29779

                                                    narrower national best bid or offer                     add new subparagraph (c) to Rule 11.2,                proposed new subparagraph (c) of Rule
                                                    (‘‘NBBO’’), as well as the display of                   which would state that any security not               11.2 will help avoid confusion by
                                                    more quoted size at price levels outside                designated for trading by the Exchange                providing transparency and certainty to
                                                    the NBBO (‘‘depth of book’’). In turn,                  pursuant to subparagraph (b) of this                  members and investors regarding the
                                                    the Exchange believes that these                        Rule may be designated for trading by                 securities the Exchange is or is not
                                                    enhancements to market quality could                    the Exchange if its consolidated average              designating for quoting and trading on
                                                    ultimately increase investor and                        daily trading volume exceeds 5,000                    the Exchange.
                                                    member interest in such securities                      shares over any 90 calendar day period                   The Exchange believes that limiting
                                                    resulting in greater average daily trading              since the security was not designated for             the impact of paragraph (b) of the
                                                    volume. As such, as described below,                    trading pursuant to subparagraph (b).                 proposed rule change to securities with
                                                    the Exchange is proposing to adopt rules                The Exchange also proposes to make                    a consolidated average daily trading
                                                    to clarify the circumstances under                      clear that new subparagraph (c) is not                volume that is equal to or less than
                                                    which the Exchange would voluntarily                    intended to limit the Exchange’s ability              2,500 shares during the preceding 90
                                                    provide advance notice to the industry                  to designate any security for trading                 calendar days is reasonable because
                                                    that it is ceasing to quote and trade                   pursuant to the Exchange’s general                    such securities tend to be illiquid, as
                                                    certain specific illiquid securities until              authority under subparagraph (a) of                   reflected by larger quoted and effective
                                                    such securities meet and sustain an                     Rule 11.2. The Exchange also proposes                 spreads, with smaller quoted size at
                                                    average daily volume threshold                          to add new subparagraph (d) to Rule                   both the NBBO and throughout the
                                                    indicative of increased liquidity.                      11.2, which would require the Exchange                depth of book than more actively-traded
                                                       In particular, the Exchange proposes                 to provide notice at least one trading                securities. Similarly, the Exchange
                                                    to amend Rule 11.2 to state that the                    day in advance of any securities it is                believes that considering to designate
                                                    Exchange may determine not to                           making unavailable for trading pursuant               for trading those securities that have not
                                                    designate for trading any security                      to subparagraph (b) of Rule 11.2, and                 been trading on the Exchange pursuant
                                                    admitted to unlisted trading privileges                 any securities it is making available for             to paragraph (b) once such securities
                                                    on the Exchange if that security falls                  trading under subparagraph (c) of Rule                have a consolidated average daily
                                                    below certain consolidated average                      11.2.                                                 trading volume that exceeds 5,000
                                                    daily volume requirements, as further                      While the Exchange is proposing to                 shares over a 90 calendar day period
                                                    described below. Rule 11.2 currently                    retain discretion over whether it will in             since the security was not designated for
                                                    states that any class of securities listed              fact determine not to quote and trade                 trading pursuant to proposed
                                                    or admitted to unlisted trading                         securities that meet the criteria                     subparagraph (b) of Rule 11.2 is
                                                    privileges on the Exchange pursuant to                  described in proposed new                             reasonable because such activity may
                                                    Chapter XIV of the Exchange’s rules 3                   subparagraphs (b) and (c) of Rule 11.2,               demonstrate that such securities are
                                                    shall be eligible to become designated                  the Exchange notes that nothing in its                now trading more effectively. The
                                                    for trading on the Exchange. The Rule                   rules or applicable securities regulation             Exchange believes that its proposed rule
                                                    further states that all securities                      requires it to designate for trading any              changes may facilitate an improvement
                                                    designated for trading are eligible for                 class of securities listed or admitted to             in market quality for the effected
                                                    odd-lot, round-lot and mixed-lot                        unlisted trading privileges on the                    securities.6 In particular, the Exchange
                                                    executions, unless otherwise indicated                  Exchange pursuant to Chapter XIV of                   believes that by concentrating the
                                                    by the Exchange or limited pursuant to                  the Exchange’s rules. The Exchange                    quoted liquidity in such securities on
                                                    Exchange rules. The Exchange proposes                   believes that adopting such a provision               the listing exchange, liquidity providers
                                                    to include these existing provisions of                 in its rules could enhance market                     will be incented to quote on such
                                                    Rule 11.2 within subparagraph (a) of the                quality for securities falling below the              exchange more competitively, resulting
                                                    proposed rule in order to separately                    consolidated average daily volume                     in narrower bid-ask spreads and greater
                                                    propose additional provisions under                     threshold by facilitating the                         quoted depth of book. The Exchange
                                                    subparagraphs (b), (c), and (d).                        concentration of quoted liquidity on the              believes liquidity providers would be so
                                                       The Exchange proposes to add new                     listing exchange.5 In determining                     incented because concentrating the
                                                    subparagraph (b) to Rule 11.2, which                    whether to exercise its discretion under              quoted liquidity in such securities on
                                                    would state that the Exchange may                       proposed new subparagraphs (b) and (c)                the listing exchange would: (i) Reduce
                                                    determine not to designate for trading                  of Rule 11.2, the Exchange would                      liquidity providers’ risk of adverse
                                                    any security admitted to unlisted                       consider such factors as member and                   selection inherent in quoting in a
                                                    trading privileges on the Exchange                      investor feedback as well as whether the              fragmented market, (ii) provide greater
                                                    pursuant to Chapter XIV of the                          other non-listing exchanges have                      certainty of execution on the one
                                                    Exchange’s rules when that security’s                   decided to cease quoting and trading in
                                                                                                                                                                     6 Based on an internal study, the Exchange
                                                    consolidated average daily trading                      the effected securities. The Exchange
                                                                                                                                                                  believes a majority of the securities that would be
                                                    volume is equal to or less than 2,500                   further believes that adoption of a rule              covered by the Rule’s criteria are small-cap
                                                    shares during the preceding 90 calendar                 requiring it to provide advance notice to             companies (i.e., companies with a market
                                                    days.4 The Exchange further proposes to                 its members of any securities the                     capitalization of $250 million or less). Suggesting
                                                                                                            Exchange is choosing not to trade under               that the current U.S. equity market often fails to
                                                                                                                                                                  provide sufficient liquidity for the securities of
                                                       3 Chapter XIV of the Exchange’s rules discusses
                                                                                                            proposed new subparagraph (b) of Rule                 small-cap companies, the Commission’s Advisory
                                                    the securities eligible to be designated for trading    11.2 and any securities it is making                  Committee on Small and Emerging Companies
                                                    on the Exchange. Exchange Rule 14.1, in particular,
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                                                                            available for trading pursuant to                     (‘‘Advisory Committee’’) recommended to the
                                                    states that the Exchange may extend unlisted                                                                  Commission concentrating the market for such
                                                    trading privileges to any Equity Security (as defined                                                         securities through the creation of a separate U.S.
                                                    in the Rule) that is listed on another national         trading volume of 2,500 shares or less during the     equity market. See Recommendations Regarding
                                                    securities exchange or with respect to which            preceding 90 calendar days will affect                Separate U.S. Equity Market for Securities of Small
                                                    unlisted trading privileges may otherwise be            approximately 700 securities.                         and Emerging Companies, by the Advisory
                                                    extended in accordance with Section 12(f) of the           5 The Exchange understands that the EDGA
                                                                                                                                                                  Committee on Small and Emerging Companies,
                                                    Exchange Act.                                           Exchange, Inc., BATS Exchange, Inc., and BATS Y-      dated February 1, 2013. The Advisory Committee
                                                       4 Based on internal statistics, the Exchange         Exchange, Inc. will separately file substantially     also stated that other actions with respect to trading
                                                    anticipates that limiting the rule’s applicability to   similar proposed rule changes with the                venues may also be warranted to facilitate liquidity
                                                    those securities with a consolidated average daily      Commission.                                           in small and emerging companies. Id.



                                               VerDate Sep<11>2014   18:19 May 21, 2015   Jkt 235001   PO 00000   Frm 00178   Fmt 4703   Sfmt 4703   E:\FR\FM\22MYN1.SGM   22MYN1


                                                    29780                             Federal Register / Vol. 80, No. 99 / Friday, May 22, 2015 / Notices

                                                    exchange at which liquidity providers                    providers to more efficiently form                     interest in trading such securities,
                                                    are quoting, and (iii) enhance                           competitive prices at the NBBO, and to                 which in turn would improve
                                                    competition for order book priority at                   provide greater quoted depth of book. In               competition by generating increased
                                                    the NBBO and throughout the depth of                     addition, the Exchange believes that if                volume which would also ultimately
                                                    book. Although the Exchange would be                     displayed liquidity is concentrated on                 benefit the Exchange once such
                                                    voluntarily foregoing potential market                   the listing exchange in such securities,               securities become eligible for trading on
                                                    share by not quoting and trading                         the listing exchange may have flexibility              the Exchange under the rule in the
                                                    securities subject to the Rule, the                      to innovate with alternative market                    future.
                                                    Exchange believes the aforementioned                     structures, such as variable tick sizes or
                                                    enhancements in market quality may                                                                              (C) Self-Regulatory Organization’s
                                                                                                             periodic batch auctions that are not
                                                    increase investor interest in trading                                                                           Statement on Comments on the
                                                                                                             currently possible under Regulation
                                                    such securities, which in turn would                                                                            Proposed Rule Change Received From
                                                                                                             NMS when multiple exchanges are
                                                    generate increased volume and                                                                                   Members, Participants or Others
                                                                                                             quoting and trading the securities, and
                                                    ultimately benefit the Exchange once                     which may further enhance the market                     The Exchange has neither solicited
                                                    such securities become eligible for                      quality of the effected illiquid                       nor received written comments on the
                                                    trading on the Exchange under the rule                   securities.10                                          proposed rule changes.
                                                    in the future.                                              The proposed rule change promotes                   III. Date of Effectiveness of the
                                                    2. Statutory Basis                                       just and equitable principles of trade                 Proposed Rule Change and Timing for
                                                                                                             because it will provide certainty and                  Commission Action
                                                       The Exchange believes that the                        transparency to members and investors
                                                    proposed rule changes are consistent                     with respect to which securities the                      Within 45 days of the date of
                                                    with Section 6(b) of the Securities                      Exchange will or will not designate for                publication of this notice in the Federal
                                                    Exchange Act of 1934 (the ‘‘Act’’) 7 and                 quoting and trading on the Exchange,                   Register or within such longer period (i)
                                                    further the objectives of Section 6(b)(5)                thereby avoiding confusion.                            as the Commission may designate up to
                                                    of the Act 8 because they are designed to                                                                       90 days of such date if it finds such
                                                    promote just and equitable principles of                 (B) Self-Regulatory Organization’s                     longer period to be appropriate and
                                                    trade, to remove impediments to and                      Statement on Burden on Competition                     publishes its reasons for so finding or
                                                    perfect the mechanism of a free and                        The Exchange does not believe that                   (ii) as to which the Exchange consents,
                                                    open market and a national market                        the proposed rule changes will result in               the Commission will: (a) By order
                                                    system, to foster cooperation and                        any burden on competition that is not                  approve or disapprove such proposed
                                                    coordination with persons engaged in                     necessary or appropriate in furtherance                rule change, or (b) institute proceedings
                                                    facilitating transactions in securities,                 of the purposes of the Act. The                        to determine whether the proposed rule
                                                    and, in general, to protect investors and                Exchange notes that nothing in its rules               change should be disapproved.
                                                    the public interest.                                     or any applicable securities regulation
                                                       The Exchange notes that nothing in its                                                                       IV. Solicitation of Comments
                                                                                                             require it to designate for trading any
                                                    rules or any applicable securities                       class of securities listed or admitted to                 Interested persons are invited to
                                                    regulation requires it to designate for                  unlisted trading privileges on the                     submit written data, views, and
                                                    trading any class of securities listed or                Exchange pursuant to Chapter XIV of                    arguments concerning the foregoing,
                                                    admitted to unlisted trading privileges                  the Exchange’s rules. The Exchange                     including whether the proposed rule
                                                    on the Exchange pursuant to Chapter                      believes enacting such a provision in its              change, as modified by Amendment No.
                                                    XIV of the Exchange’s rules. However,                    rules would not impose a burden on                     1, is consistent with the Act. Comments
                                                    the Exchange believes adopting a rule to                 competition that is not necessary or                   may be submitted by any of the
                                                    clarify the circumstances under which                    appropriate in furtherance of the                      following methods:
                                                    the Exchange would voluntarily provide                   purposes of the Act. While the Exchange                Electronic Comments
                                                    advance notice to the industry that it is                will be voluntarily foregoing potential
                                                    ceasing to quote and trade certain                                                                                • Use the Commission’s Internet
                                                                                                             market share by not quoting and trading                comment form (http://www.sec.gov/
                                                    specific illiquid securities until such                  securities subject to the rule, the
                                                    securities meet and sustain a                                                                                   rules/sro.shtml); or
                                                                                                             Exchange believes the proposal will                      • Send an email to rule-comments@
                                                    consolidated average daily volume                        enhance market quality in such
                                                    threshold indicative of increased                                                                               sec.gov. Please include File Number SR–
                                                                                                             securities by increasing quoting                       EDGX–2015–21 on the subject line.
                                                    liquidity would promote just and                         competition among liquidity providers
                                                    equitable principles of trade, remove                    on the listing exchange, which will                    Paper Comments
                                                    impediments to and perfect the
                                                    mechanism of a free and open market
                                                                                                             result in better prices at the NBBO and                  • Send paper comments in triplicate
                                                                                                             greater depth of book. The Exchange                    to Brent J. Fields, Secretary, Securities
                                                    and a national market system by                          further believes these enhancements in
                                                    facilitating the concentration of                                                                               and Exchange Commission, 100 F Street
                                                                                                             market quality may increase investor                   NE., Washington, DC 20549–1090.
                                                    displayed liquidity on the listing
                                                    exchange for effected securities, which                    10 The Exchange is not proposing or advocating
                                                                                                                                                                    All submissions should refer to File
                                                    the Exchange believes could enhance                      any form of trade-at prohibition, which, depending
                                                                                                                                                                    Number SR–EDGX–2015–21. This file
                                                    the market quality of such securities.9                  on its various iterations, would generally act to      number should be included on the
                                                                                                                                                                    subject line if email is used. To help the
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                    The Exchange believes that                               prevent trading off-exchange without first executing
                                                                                                             against all equal or better priced protected           Commission process and review your
                                                    concentrating displayed liquidity on the                 quotations. Rather, the Exchange is proposing and
                                                    listing exchange in certain illiquid                     advocating a reduction in the number of displayed
                                                                                                                                                                    comments more efficiently, please use
                                                    securities may enhance market quality                    venues on which certain illiquid securities will be    only one method. The Commission will
                                                    of such securities by enabling liquidity                 quoted and traded, which the Exchange believes         post all comments on the Commission’s
                                                                                                             will concentrate the quoting activity serving to       Internet Web site (http://www.sec.gov/
                                                                                                             enhance quote competition and thereby increase
                                                      7 15 U.S.C. 78f(b).                                    market quality by narrowing the NBBO and
                                                                                                                                                                    rules/sro.shtml). Copies of the
                                                      8 15 U.S.C. 78f(b)(5).                                 increasing the quoted depth of book for effected       submission, all subsequent
                                                      9 See supra note 6.                                    securities, without regard to off-exchange trading.    amendments, all written statements


                                               VerDate Sep<11>2014    18:19 May 21, 2015   Jkt 235001   PO 00000   Frm 00179   Fmt 4703   Sfmt 4703   E:\FR\FM\22MYN1.SGM   22MYN1


                                                                                     Federal Register / Vol. 80, No. 99 / Friday, May 22, 2015 / Notices                                                     29781

                                                    with respect to the proposed rule                       Exchange filed Amendment No. 1 to the                 Exchange recognizes that not all
                                                    change that are filed with the                          proposal. Amendment No. 1 amended                     exchange-listed securities have
                                                    Commission, and all written                             and replaced the original proposal in its             benefited to the same extent under the
                                                    communications relating to the                          entirety. The Commission is publishing                current one-size fits all approach to the
                                                    proposed rule change between the                        this notice to solicit comments on the                equity market. In particular, investors
                                                    Commission and any person, other than                   proposed rule change, as modified by                  continue to experience difficulty trading
                                                    those that may be withheld from the                     Amendment No. 1, from interested                      illiquid securities, including paying
                                                    public in accordance with the                           persons.                                              higher effective spreads and difficulty
                                                    provisions of 5 U.S.C. 552, will be                                                                           sourcing liquidity across multiple
                                                    available for Web site viewing and                      I. Self-Regulatory Organization’s                     exchanges and non-exchange trading
                                                    printing in the Commission’s Public                     Statement of the Terms of Substance of                venues while minimizing market
                                                    Reference Room, 100 F Street NE.,                       the Proposed Rule Change                              impact.
                                                    Washington, DC 20549, on official                          The Exchange filed a proposal to                      The Exchange believes the market
                                                    business days between the hours of                      amend Rule 11.2 to state that the                     quality of securities that are today
                                                    10:00 a.m. and 3:00 p.m. Copies of the                  Exchange will not designate for trading               illiquid could benefit from a
                                                    filing will also be available for                       any security admitted to unlisted                     concentration of quoted liquidity on the
                                                    inspection and copying at the principal                 trading privileges on the Exchange                    listing exchange. By concentrating
                                                    office of the Exchange. All comments                    unless that security satisfies certain                quoted liquidity on the listing exchange,
                                                    received will be posted without change;                 liquidity requirements, as further                    for the reasons discussed below, the
                                                    the Commission does not edit personal                   described below.                                      Exchange believes liquidity providers
                                                    identifying information from                               The text of the proposed rule change               will quote more competitively, resulting
                                                    submissions. You should submit only                     is available at the Exchange’s Web site               in more efficient price formation and a
                                                    information that you wish to make                       at www.batstrading.com, at the                        narrower national best bid or offer
                                                    available publicly. All submissions                     principal office of the Exchange, and at              (‘‘NBBO’’), as well as the display of
                                                    should refer to File Number SR–EDGX–                    the Commission’s Public Reference                     more quoted size at price levels outside
                                                    2015–21 and should be submitted on or                   Room.                                                 the NBBO (‘‘depth of book’’). In turn,
                                                    before June 12, 2015.                                                                                         the Exchange believes that these
                                                                                                            II. Self-Regulatory Organization’s                    enhancements to market quality could
                                                      For the Commission, by the Division of                Statement of the Purpose of, and
                                                    Trading and Markets, pursuant to delegated                                                                    ultimately increase investor and
                                                    authority.11                                            Statutory Basis for, the Proposed Rule                member interest in such securities
                                                                                                            Change                                                resulting in greater average daily trading
                                                    Robert W. Errett,
                                                    Deputy Secretary.                                         In its filing with the Commission, the              volume. As such, as described below,
                                                    [FR Doc. 2015–12412 Filed 5–21–15; 8:45 am]             Exchange included statements                          the Exchange is proposing to adopt rules
                                                                                                            concerning the purpose of and basis for               to clarify the circumstances under
                                                    BILLING CODE 8011–01–P
                                                                                                            the proposed rule change and discussed                which the Exchange would voluntarily
                                                                                                            any comments it received on the                       provide advance notice to the industry
                                                    SECURITIES AND EXCHANGE                                 proposed rule change. The text of these               that it is ceasing to quote and trade
                                                    COMMISSION                                              statements may be examined at the                     certain specific illiquid securities until
                                                                                                            places specified in Item IV below. The                such securities meet and sustain an
                                                    [Release No. 34–74988; File No. SR–BYX–                                                                       average daily volume threshold
                                                    2015–25]
                                                                                                            Exchange has prepared summaries, set
                                                                                                            forth in Sections A, B, and C below, of               indicative of increased liquidity.
                                                                                                            the most significant parts of such                       In particular, the Exchange proposes
                                                    Self-Regulatory Organizations; BATS                                                                           to amend Rule 11.2 to state that the
                                                    Y-Exchange, Inc.; Notice of Filing of a                 statements.
                                                                                                                                                                  Exchange may determine not to
                                                    Proposed Rule Change, and                               (A) Self-Regulatory Organization’s                    designate for trading any security
                                                    Amendment No. 1 Thereto, To Amend                       Statement of the Purpose of, and                      admitted to unlisted trading privileges
                                                    Rule 11.2 To State That the BATS                        Statutory Basis for, the Proposed Rule                on the Exchange if that security falls
                                                    Y-Exchange, Inc. Will Not Designate for                 Change                                                below certain consolidated average
                                                    Trading Any Security Admitted to                                                                              daily volume requirements, as further
                                                    Unlisted Trading Privileges on the                      1. Purpose
                                                                                                                                                                  described below. Rule 11.2 currently
                                                    Exchange Unless That Security                              With limited exception, the current                states that any class of securities listed
                                                    Satisfies Certain Liquidity                             equity market structure under                         or admitted to unlisted trading
                                                    Requirements                                            Regulation NMS applies the same rules                 privileges on the Exchange pursuant to
                                                    May 18, 2015.                                           with respect to, among other things, tick             Chapter XIV of the Exchange’s rules 3
                                                       Pursuant to Section 19(b)(1) of the                  sizes, order protection, locked and                   shall be eligible to become designated
                                                    Securities Exchange Act of 1934 (the                    crossed markets, and access fees to all               for trading on the Exchange. The Rule
                                                    ‘‘Act’’),1 and Rule 19b–4 thereunder,2                  exchange-listed securities. The                       further states that all securities
                                                    notice is hereby given that on May 5,                   Exchange believes that Regulation NMS,                designated for trading are eligible for
                                                    2015, BATS Y-Exchange, Inc. (the                        along with technological advancements,                odd-lot, round-lot and mixed-lot
                                                    ‘‘Exchange’’ or ‘‘BYX’’) filed with the                 has produced great efficiencies to the                executions, unless otherwise indicated
                                                                                                            equity market, resulting in intense
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                    Securities and Exchange Commission
                                                    (‘‘Commission’’) the proposed rule                      competition between exchanges and                        3 Chapter XIV of the Exchange’s rules discusses

                                                                                                            broker-dealers. The Exchange believes                 the securities eligible to be designated for trading
                                                    change as described in Items I, II and III                                                                    on the Exchange. Exchange Rule 14.1, in particular,
                                                    below, which Items have been prepared                   the net result for most exchange-listed               states that the Exchange may extend unlisted
                                                    by the Exchange. On May 15, 2015, the                   securities has been decreases in                      trading privileges to any Equity Security (as defined
                                                                                                            transaction costs, including decreases in             in the Rule) that is listed on another national
                                                                                                            explicit commissions and the narrowing                securities exchange or with respect to which
                                                      11 17 CFR 200.30–3(a)(12).                                                                                  unlisted trading privileges may otherwise be
                                                      1 15 U.S.C. 78s(b)(1).                                of effective spreads investors pay to                 extended in accordance with Section 12(f) of the
                                                      2 17 CFR 240.19b–4.                                   enter and exit positions. However, the                Exchange Act.



                                               VerDate Sep<11>2014   18:19 May 21, 2015   Jkt 235001   PO 00000   Frm 00180   Fmt 4703   Sfmt 4703   E:\FR\FM\22MYN1.SGM   22MYN1



Document Created: 2015-12-15 15:46:14
Document Modified: 2015-12-15 15:46:14
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation80 FR 29778 

2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR