80 FR 32190 - Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule To Amend Fees Applicable to Securities Listed on BATS Exchange, Inc. Pursuant to BATS Rule 14.13

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 108 (June 5, 2015)

Page Range		32190-32191
FR Document		2015-13722
Federal Register, Volume 80 Issue 108 (Friday, June 5, 2015)
[Federal Register Volume 80, Number 108 (Friday, June 5, 2015)]
[Notices]
[Pages 32190-32191]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-13722]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75085; File No. SR-BATS-2015-39]


Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule To Amend Fees 
Applicable to Securities Listed on BATS Exchange, Inc. Pursuant to BATS 
Rule 14.13

June 1, 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 22, 2015, BATS Exchange, Inc. (the ``Exchange'' or 
``BATS'') 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. The 
Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange filed a proposal to amend the fees applicable to 
securities listed on the Exchange pursuant to BATS Rule 14.13. Changes 
to the Exchange's fees pursuant to this proposal are effective upon 
filing.
    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
    On August 30, 2011, the Exchange received approval of rules 
applicable to the qualification, listing, and delisting of companies on 
the Exchange,\3\ which it modified on February 8, 2012 in order to 
adopt pricing for the listing of exchange traded products (``ETPs'') 
\4\ on the Exchange,\5\ which it subsequently modified again on June 4, 
2014.\6\ On October 16, 2014, the Exchange modified Rule 14.13, 
entitled ``Company Listing Fees'' to eliminate the annual fees for ETPs 
that are not participating in the competitive liquidity provider 
program under Interpretation and Policy .02 to Rule 11.8, but did not 
eliminate the $5,000 application fee for ETPs.\7\ The Exchange is now 
proposing to eliminate the $5,000 application fee for all ETPs, which 
would eliminate all compulsory fees for both new ETP issues and 
transfer listings in ETPs on the Exchange.
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    \3\ See Securities Exchange Act Release No. 65225 (August 30, 
2011) 76 FR 55148 (September 6, 2011) (SR-BATS-2011-018).
    \4\ As defined in BATS Rule 11.8(e)(1)(A), the term ``ETP'' 
means any security listed pursuant to Exchange Rule 14.11.
    \5\ See Securities Exchange Act Release No. 66422 (February 17, 
2012) 77 FR 11179 (February 24, 2012) (SR-BATS-2012-010).
    \6\ See Securities Exchange Act Release No. 72377 (June 12, 
2014) 79 FR 34822 (June 18, 2014) (SR-BATS-2014-024).
    \7\ See Securities Exchange Act Release No. 73414 (October 23, 
2014) 79 FR 64434 (October 29, 2014) (SR-BATS-2014-050).

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[[Page 32191]]

    Specifically, the Exchange is proposing that issuers that submit an 
application to list any ETP on the Exchange shall pay no application 
fee to the Exchange. Currently, Rule 14.13(b)(1)(C) provides that any 
ETP shall pay to the Exchange a fee of $5,000 which represents a non-
refundable application fee that will be billed to the Company in the 
month that the ETP is listed on the Exchange.
    The Exchange proposes to implement the amendments to Rule 
14.13(b)(1)(C) effective immediately.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder that are applicable to a national securities exchange, and, 
in particular, with the requirements of Section 6 of the Act.\8\ 
Specifically, the Exchange believes that the proposed rule change is 
consistent with Section 6(b)(4) and 6(b)(5) of the Act,\9\ in that it 
provides for the equitable allocation of reasonable dues, fees and 
other charges among issuers and it does not unfairly discriminate 
between customers, issuers, brokers or dealers.
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    \8\ 15 U.S.C. 78f.
    \9\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange is proposing to eliminate the application fee for ETPs 
that list on the Exchange, which will eliminate all compulsory fees for 
new issuers and transfer listings in ETPs, which the Exchange believes 
is equitable, reasonable, and non-discriminatory because the absence of 
required fees for listings will be applied equally to all ETPs, both 
new listings and transfers. The Exchange notes that those ETPs that 
elect to participate in the CLP Program under Interpretation and Policy 
.03 to Rule 11.8 may still choose to pay between $5,000 and $100,000 in 
the form of a CLP Fee,\10\ however such fees are entirely optional. The 
Exchange believes that continuing to charge a CLP Fee for ETPs that 
participate in the CLP Program is equitable and non-discriminatory 
because the CLP Fee is the exact same amount as the total annual CLP 
Rebates \11\ available to ETP CLPs \12\ in a given CLP Security.\13\ 
Further, ETPs participating in the CLP Program may opt out of the CLP 
Program at any time in order to be eligible for having no listing fees.
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    \10\ As defined in paragraph (a) of Interpretation and Policy 
.03 to Rule 11.8.
    \11\ As defined in paragraph (a) of Interpretation and Policy 
.03 to Rule 11.8.
    \12\ As defined in paragraph (b)(1) of Interpretation and Policy 
.03 to Rule 11.8.
    \13\ As defined in paragraph (b)(3) of Interpretation and Policy 
.03 to Rule 11.8.
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    Based on the foregoing, the Exchange believes that its proposed 
elimination of the application fee for ETPs (and thereby all compulsory 
listing fees) that are not participating in the CLP Program is a 
reasonable, equitable, and non-discriminatory allocation of fees to 
issuers.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
result in any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act, as amended. With 
respect to the proposed new pricing for the listing of ETPs, the 
Exchange does not believe that the changes burden competition, but 
instead, enhance competition, as it is intended to increase the 
competitiveness of the Exchange's listings program by allowing the 
Exchange to offer ETPs the ability to list on the Exchange without 
having to pay any initial or annual fees. As such, the proposal is a 
competitive proposal that is intended to attract additional ETP 
listings, which will, in turn, benefit the Exchange and all other BATS-
listed ETPs.

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

    The Exchange has not solicited, and does not intend to solicit, 
comments on this proposed rule change. The Exchange has not received 
any written comments from members or other interested parties.

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \14\ and Rule 19b-4(f)(2) thereunder.\15\ At any 
time within 60 days of the filing of the proposed rule change, the 
Commission summarily may temporarily suspend such rule change if it 
appears to the Commission that such action is necessary or appropriate 
in the public interest, for the protection of investors, or otherwise 
in furtherance of the purposes of the Act.
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    \14\ 15 U.S.C. 78s(b)(3)(A).
    \15\ 17 CFR 240.19b-4(f)(2).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-BATS-2015-39 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-BATS-2015-39. 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 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 such 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-BATS-2015-39 and should be 
submitted on or before June 26, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-13722 Filed 6-4-15; 8:45 am]
 BILLING CODE 8011-01-P
32190 Federal Register / Vol. 80, No. 108 / Friday, June 5, 2015 / Notices

consistent with the protection of those that may be withheld from the Exchange’s fees pursuant to this
investors and the public interest, the public in accordance with the proposal are effective upon filing.
proposed rule change has become provisions of 5 U.S.C. 552, will be The text of the proposed rule change
effective pursuant to Section 19(b)(3)(A) available for Web site viewing and is available at the Exchange’s Web site
of the Act 18 and Rule 19b–4(f)(6) printing in the Commission’s Public at www.batstrading.com, at the
thereunder.19 Reference Room, 100 F Street NE., principal office of the Exchange, and at
At any time within 60 days of the Washington, DC 20549, on official the Commission’s Public Reference
filing of the proposed rule change, the business days between the hours of Room.
Commission may temporarily suspend 10:00 a.m. and 3:00 p.m. Copies of such
such rule change if it appears to the filing will also be available for II. Self-Regulatory Organization’s
Commission that such action is inspection and copying at the principal Statement of the Purpose of, and
necessary or appropriate in the public office of the Exchange. All comments Statutory Basis for, the Proposed Rule
interest, for the protection of investors, received will be posted without change; Change
or otherwise in furtherance of the the Commission does not edit personal In its filing with the Commission, the
purposes of the Act. If the Commission identifying information from Exchange included statements
takes such action, the Commission shall submissions. You should submit only concerning the purpose of and basis for
institute proceedings to determine information that you wish to make the proposed rule change and discussed
whether the proposed rule should be available publicly. All submissions any comments it received on the
approved or disapproved. should refer to File Number SR– proposed rule change. The text of these
NYSEArca–2015–46 and should be statements may be examined at the
IV. Solicitation of Comments submitted on or before June 26, 2015. places specified in Item IV below. The
Interested persons are invited to For the Commission, by the Division of Exchange has prepared summaries, set
submit written data, views, and Trading and Markets, pursuant to delegated forth in Sections A, B, and C below, of
arguments concerning the foregoing, authority.20 the most significant parts of such
including whether the proposed rule Brent J. Fields, statements.
change is consistent with the Act. Secretary.
Comments may be submitted by any of A. Self-Regulatory Organization’s
[FR Doc. 2015–13723 Filed 6–4–15; 8:45 am]
the following methods: Statement of the Purpose of, and
BILLING CODE 8011–01–P
Statutory Basis for, the Proposed Rule
Electronic Comments Change
• Use the Commission’s Internet SECURITIES AND EXCHANGE 1. Purpose
comment form (http://www.sec.gov/ COMMISSION
rules/sro.shtml); or On August 30, 2011, the Exchange
• Send an email to rule-comments@ [Release No. 34–75085; File No. SR–BATS– received approval of rules applicable to
sec.gov. Please include File Number SR– 2015–39] the qualification, listing, and delisting
NYSEArca–2015–46 on the subject line. of companies on the Exchange,3 which
Self-Regulatory Organizations; BATS it modified on February 8, 2012 in order
Paper Comments Exchange, Inc.; Notice of Filing and to adopt pricing for the listing of
Immediate Effectiveness of a Proposed
• Send paper comments in triplicate exchange traded products (‘‘ETPs’’) 4 on
Rule To Amend Fees Applicable to the Exchange,5 which it subsequently
to Secretary, Securities and Exchange
Securities Listed on BATS Exchange, modified again on June 4, 2014.6 On
Commission, 100 F Street NE.,
Inc. Pursuant to BATS Rule 14.13
Washington, DC 20549–1090. October 16, 2014, the Exchange
All submissions should refer to File June 1, 2015. modified Rule 14.13, entitled ‘‘Company
Number SR–NYSEArca–2015–46. This Pursuant to Section 19(b)(1) of the Listing Fees’’ to eliminate the annual
file number should be included on the Securities Exchange Act of 1934 (the fees for ETPs that are not participating
subject line if email is used. To help the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 in the competitive liquidity provider
Commission process and review your notice is hereby given that on May 22, program under Interpretation and Policy
comments more efficiently, please use 2015, BATS Exchange, Inc. (the .02 to Rule 11.8, but did not eliminate
only one method. The Commission will ‘‘Exchange’’ or ‘‘BATS’’) filed with the the $5,000 application fee for ETPs.7
post all comments on the Commission’s Securities and Exchange Commission The Exchange is now proposing to
Internet Web site (http://www.sec.gov/ (‘‘Commission’’) the proposed rule eliminate the $5,000 application fee for
rules/sro.shtml). Copies of the change as described in Items I, II, and all ETPs, which would eliminate all
submission, all subsequent III, below, which Items have been compulsory fees for both new ETP
amendments, all written statements prepared by the Exchange. The issues and transfer listings in ETPs on
with respect to the proposed rule Commission is publishing this notice to the Exchange.
change that are filed with the solicit comments on the proposed rule
Commission, and all written change from interested persons. 3 See Securities Exchange Act Release No. 65225

(August 30, 2011) 76 FR 55148 (September 6, 2011)
communications relating to the I. Self-Regulatory Organization’s (SR–BATS–2011–018).
proposed rule change between the Statement of the Terms of Substance of 4 As defined in BATS Rule 11.8(e)(1)(A), the term
Commission and any person, other than the Proposed Rule Change ‘‘ETP’’ means any security listed pursuant to
asabaliauskas on DSK5VPTVN1PROD with NOTICES

Exchange Rule 14.11.
18 15 U.S.C. 78s(b)(3)(A). The Exchange filed a proposal to 5 See Securities Exchange Act Release No. 66422

19 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– amend the fees applicable to securities (February 17, 2012) 77 FR 11179 (February 24,
4(f)(6) requires a self-regulatory organization to give listed on the Exchange pursuant to 2012) (SR–BATS–2012–010).
6 See Securities Exchange Act Release No. 72377
the Commission written notice of its intent to file BATS Rule 14.13. Changes to the
the proposed rule change at least five business days (June 12, 2014) 79 FR 34822 (June 18, 2014) (SR–
prior to the date of filing of the proposed rule BATS–2014–024).
20 17 CFR 200.30–3(a)(12).
change, or such shorter time as designated by the 7 See Securities Exchange Act Release No. 73414
1 15 U.S.C. 78s(b)(1).
Commission. The Exchange has satisfied this (October 23, 2014) 79 FR 64434 (October 29, 2014)
requirement. 2 17 CFR 240.19b–4. (SR–BATS–2014–050).

VerDate Sep<11>2014 18:31 Jun 04, 2015 Jkt 235001 PO 00000 Frm 00109 Fmt 4703 Sfmt 4703 E:\FR\FM\05JNN1.SGM 05JNN1
Federal Register / Vol. 80, No. 108 / Friday, June 5, 2015 / Notices 32191

Specifically, the Exchange is in order to be eligible for having no including whether the proposed rule
proposing that issuers that submit an listing fees. change is consistent with the Act.
application to list any ETP on the Based on the foregoing, the Exchange Comments may be submitted by any of
Exchange shall pay no application fee to believes that its proposed elimination of the following methods:
the Exchange. Currently, Rule the application fee for ETPs (and
thereby all compulsory listing fees) that Electronic Comments
14.13(b)(1)(C) provides that any ETP
shall pay to the Exchange a fee of $5,000 are not participating in the CLP Program • Use the Commission’s Internet
which represents a non-refundable is a reasonable, equitable, and non- comment form (http://www.sec.gov/
application fee that will be billed to the discriminatory allocation of fees to rules/sro.shtml); or
Company in the month that the ETP is issuers.
listed on the Exchange. • Send an email to rule-comments@
B. Self-Regulatory Organization’s sec.gov. Please include File Number SR–
The Exchange proposes to implement Statement on Burden on Competition BATS–2015–39 on the subject line.
the amendments to Rule 14.13(b)(1)(C)
effective immediately. The Exchange does not believe that Paper Comments
the proposed rule change will result in
2. Statutory Basis any burden on competition that is not • Send paper comments in triplicate
The Exchange believes that the necessary or appropriate in furtherance to Secretary, Securities and Exchange
proposed rule change is consistent with of the purposes of the Act, as amended. Commission, 100 F Street NE.,
the requirements of the Act and the With respect to the proposed new Washington, DC 20549–1090.
rules and regulations thereunder that pricing for the listing of ETPs, the
Exchange does not believe that the All submissions should refer to File
are applicable to a national securities Number SR–BATS–2015–39. This file
exchange, and, in particular, with the changes burden competition, but
instead, enhance competition, as it is number should be included on the
requirements of Section 6 of the Act.8 subject line if email is used. To help the
Specifically, the Exchange believes that intended to increase the
competitiveness of the Exchange’s Commission process and review your
the proposed rule change is consistent comments more efficiently, please use
with Section 6(b)(4) and 6(b)(5) of the listings program by allowing the
Exchange to offer ETPs the ability to list only one method. The Commission will
Act,9 in that it provides for the equitable post all comments on the Commission’s
allocation of reasonable dues, fees and on the Exchange without having to pay
any initial or annual fees. As such, the Internet Web site (http://www.sec.gov/
other charges among issuers and it does rules/sro.shtml). Copies of the
not unfairly discriminate between proposal is a competitive proposal that
is intended to attract additional ETP submission, all subsequent
customers, issuers, brokers or dealers. amendments, all written statements
listings, which will, in turn, benefit the
The Exchange is proposing to Exchange and all other BATS-listed with respect to the proposed rule
eliminate the application fee for ETPs ETPs. change that are filed with the
that list on the Exchange, which will Commission, and all written
eliminate all compulsory fees for new C. Self-Regulatory Organization’s communications relating to the
issuers and transfer listings in ETPs, Statement on Comments on the proposed rule change between the
which the Exchange believes is Proposed Rule Change Received From Commission and any person, other than
equitable, reasonable, and non- Members, Participants, or Others those that may be withheld from the
discriminatory because the absence of The Exchange has not solicited, and public in accordance with the
required fees for listings will be applied does not intend to solicit, comments on provisions of 5 U.S.C. 552, will be
equally to all ETPs, both new listings this proposed rule change. The available for Web site viewing and
and transfers. The Exchange notes that Exchange has not received any written printing in the Commission’s Public
those ETPs that elect to participate in comments from members or other Reference Room, 100 F Street NE.,
the CLP Program under Interpretation interested parties. Washington, DC 20549, on official
and Policy .03 to Rule 11.8 may still business days between the hours of
choose to pay between $5,000 and III. Date of Effectiveness of the 10:00 a.m. and 3:00 p.m. Copies of such
$100,000 in the form of a CLP Fee,10 Proposed Rule Change and Timing for filing will also be available for
however such fees are entirely optional. Commission Action inspection and copying at the principal
The Exchange believes that continuing The foregoing rule change has become office of the Exchange. All comments
to charge a CLP Fee for ETPs that effective pursuant to Section 19(b)(3)(A) received will be posted without change;
participate in the CLP Program is of the Act 14 and Rule 19b–4(f)(2) the Commission does not edit personal
equitable and non-discriminatory thereunder.15 At any time within 60 identifying information from
because the CLP Fee is the exact same days of the filing of the proposed rule submissions. You should submit only
amount as the total annual CLP change, the Commission summarily may information that you wish to make
Rebates 11 available to ETP CLPs 12 in a temporarily suspend such rule change if available publicly. All submissions
given CLP Security.13 Further, ETPs it appears to the Commission that such should refer to File Number SR–BATS–
participating in the CLP Program may action is necessary or appropriate in the 2015–39 and should be submitted on or
opt out of the CLP Program at any time public interest, for the protection of before June 26, 2015.
investors, or otherwise in furtherance of For the Commission, by the Division of
asabaliauskas on DSK5VPTVN1PROD with NOTICES

8 15 U.S.C. 78f. the purposes of the Act. Trading and Markets, pursuant to delegated
9 15 U.S.C. 78f(b)(4) and (5).
authority.16
10 As defined in paragraph (a) of Interpretation IV. Solicitation of Comments
and Policy .03 to Rule 11.8.
Brent J. Fields,
Interested persons are invited to
11 As defined in paragraph (a) of Interpretation Secretary.
and Policy .03 to Rule 11.8.
submit written data, views, and
[FR Doc. 2015–13722 Filed 6–4–15; 8:45 am]
12 As defined in paragraph (b)(1) of Interpretation arguments concerning the foregoing,
BILLING CODE 8011–01–P
and Policy .03 to Rule 11.8.
13 As defined in paragraph (b)(3) of Interpretation 14 15 U.S.C. 78s(b)(3)(A).
and Policy .03 to Rule 11.8. 15 17 CFR 240.19b–4(f)(2). 16 17 CFR 200.30–3(a)(12).

VerDate Sep<11>2014 18:31 Jun 04, 2015 Jkt 235001 PO 00000 Frm 00110 Fmt 4703 Sfmt 9990 E:\FR\FM\05JNN1.SGM 05JNN1
Document Created: 2015-12-15 15:20:25
Document Modified: 2015-12-15 15:20:25
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		80 FR 32190