80_FR_34860 80 FR 34744 - Self-Regulatory Organizations; NYSE Arca, Inc.; Order Approving Proposed Rule Change To Amend NYSE Arca Rules 3.1 and 3.3 and Section 4.01(a) of the Exchange's Bylaws To Establish a Regulatory Oversight Committee as a Committee of the Board of Directors of the Exchange

80 FR 34744 - Self-Regulatory Organizations; NYSE Arca, Inc.; Order Approving Proposed Rule Change To Amend NYSE Arca Rules 3.1 and 3.3 and Section 4.01(a) of the Exchange's Bylaws To Establish a Regulatory Oversight Committee as a Committee of the Board of Directors of the Exchange

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 116 (June 17, 2015)

Page Range34744-34745
FR Document2015-14829

Federal Register, Volume 80 Issue 116 (Wednesday, June 17, 2015)
[Federal Register Volume 80, Number 116 (Wednesday, June 17, 2015)]
[Notices]
[Pages 34744-34745]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-14829]



[[Page 34744]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75155; File No. SR-NYSEARCA-2015-29]


Self-Regulatory Organizations; NYSE Arca, Inc.; Order Approving 
Proposed Rule Change To Amend NYSE Arca Rules 3.1 and 3.3 and Section 
4.01(a) of the Exchange's Bylaws To Establish a Regulatory Oversight 
Committee as a Committee of the Board of Directors of the Exchange

June 11, 2015.

I. Introduction

    On April 17, 2015, NYSE Arca, Inc. (``Exchange'' or ``NYSE Arca'') 
filed with the Securities and Exchange Commission (``Commission''), 
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to 
amend NYSE Arca Rules 3.1 and 3.3, and Section 4.01(a) of the Bylaws of 
NYSE Arca (``Bylaws''), to establish a Regulatory Oversight Committee 
(``ROC'') as a committee of the board of directors of the Exchange 
(``Board''). The proposed rule change was published for comment in the 
Federal Register on May 4, 2015.\3\ The Commission did not receive any 
comment letters regarding the proposal. This order approves the 
proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 74824 (April 28, 
2015), 80 FR 25347.
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II. Description of the Proposal

    The Exchange proposes to establish a ROC as a committee of the 
Board with the responsibility to independently monitor the Exchange's 
regulatory operations. The Exchange proposes to amend NYSE Arca Rule 
3.3(a) to provide for the ROC and set forth the ROC's composition and 
functions. In addition, the Exchange proposes that the Board shall 
appoint the ROC on an annual basis.\4\ Under NYSE Arca Rule 
3.3(a)(2)(B), the ROC would consist of at least three members, each of 
whom would be a Public Director \5\ of the Exchange or a director of 
NYSE Regulation, Inc. (``NYSE Regulation''),\6\ who satisfies the 
Exchange's Public Director requirements set forth in Article III, 
Section 3.02(a) of the Bylaws.\7\ The Exchange further proposes that 
(i) the Board may, on affirmative vote of a majority of directors, at 
any time remove a member of the ROC for cause and (ii) a failure of a 
member of the ROC to qualify as a Public Director shall constitute a 
basis to remove a member of the ROC for cause.\8\
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    \4\ See Proposed NYSE Arca Rule 3.3(a)(2)(A).
    \5\ See infra note 7 for the definition of ``Public Director'' 
as set forth in Article III, Section 3.02(a) of the Bylaws.
    \6\ The Exchange states that NYSE Regulation is a not-for-profit 
subsidiary of the Exchange's affiliate New York Stock Exchange LLC 
that performs all of the Exchange's regulatory functions pursuant to 
an intercompany Regulatory Services Agreement that gives the 
Exchange the contractual right to review NYSE Regulation's 
performance.
    \7\ Article III, Section 3.02(a) of the Bylaws requires that at 
least 50% of the Exchange's directors be Public Directors, defined 
as ``persons from the public and [who] will not be, or be affiliated 
with, a broker-dealer in securities or employed by, or involved in 
any material business relationship with, the Exchange or its 
affiliates.''
    \8\ See Proposed NYSE Arca Rule 3.3(a)(2)(B). Under the 
proposal, if a ROC member's term of office terminates pursuant to 
NYSE Arca Rule 3.3(a)(2)(B), and the remaining term of office of 
such committee member at the time of termination is not more than 
three months, during the period of vacancy, the ROC would not be 
deemed to be in violation of its compositional requirements by 
virtue of the vacancy. See id.
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    NYSE Arca Rule 3.3(a)(2)(C) would set forth the functions and 
authority of the ROC. The ROC's responsibilities would be as follows:
     oversee the Exchange's regulatory and self-regulatory 
organization responsibilities and evaluate the adequacy and 
effectiveness of the Exchange's regulatory and self-regulatory 
organization responsibilities;
     assess the Exchange's regulatory performance; and
     advise and make recommendations to the Board or other 
committees of the Board about the Exchange's regulatory compliance, 
effectiveness and plans.
    In furtherance of the ROC's functions, the Exchange proposes that 
the ROC shall have the authority and obligation to: (i) Review the 
regulatory budget of the Exchange and specifically inquire into the 
adequacy of resources available in the budget for regulatory 
activities; (ii) meet regularly with the Chief Regulatory Officer 
(``CRO'') of the Exchange in executive session; (iii) in consultation 
with the Exchange's Chief Executive Officer, establish the goals, 
assess the performance, and recommend the CRO's compensation; and (iv) 
keep the Board informed with respect to the foregoing matters.\9\
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    \9\ See Proposed NYSE Arca Rule 3.3(a)(2)(C).
---------------------------------------------------------------------------

    The Exchange also proposes to amend NYSE Arca Rule 3.1(a) and 
Article IV, Section 4.01(a) of the Bylaws. The Exchange proposes to 
amend NYSE Arca Rule 3.1(a) to allow NYSE Regulation directors to serve 
on the ROC.\10\ In Article IV, Section 4.01(a) of the Bylaws, the 
Exchange proposes to add references to the ROC, and the Exchange 
proposes to add the text ``[e]xcept as otherwise provided in the 
Rules'' to the clause that currently requires each committee of the 
Board to be comprised of at least 50% Public Directors of the Exchange 
because, under the proposal, the ROC may include directors of NYSE 
Regulation.\11\ Lastly, the Exchange proposes to add text to Section 
4.01(a) to provide that vacancies in the membership of any committee 
would be filled by the Board.
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    \10\ Specifically, the Exchange proposes to amend NYSE Arca Rule 
3.1(a) to change the current requirement that committees of the 
Board consist of ``one or more directors of the Exchange.'' The 
amended rule text would provide that committees of the Board ``may 
consist partly or entirely of directors of the Exchange.''
    \11\ The Exchange also proposes to make a corresponding change 
to the immediately subsequent clause in Article IV, section 4.01(a) 
so that it reads as follows: ``The purpose and composition of each 
such committee shall be as set forth in the Rules.''
---------------------------------------------------------------------------

III. Discussion and Commission Findings

    After careful review, the Commission finds that the proposed rule 
change is consistent with the requirements of the Act and the rules and 
regulations thereunder applicable to a national securities 
exchange.\12\ In particular, the Commission finds that the proposed 
rule change is consistent with Section 6(b)(1) of the Act,\13\ which 
requires an exchange to be so organized and have the capacity to carry 
out the purposes of the Act and to comply, and to enforce compliance by 
its members and persons associated with its members, with the Act, the 
rules and regulations thereunder, and the rules of the exchange. The 
Commission also finds that the proposed rule change is consistent with 
Section 6(b)(5) of the Act,\14\ which requires that the rules of an 
exchange be designed, among other things, to prevent fraudulent and 
manipulative acts and practices, to promote just and equitable 
principles of trade, to remove impediments to and perfect the mechanism 
of a free and open market and a national market system, and, in 
general, to protect investors and the public interest.
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    \12\ In approving this proposed rule change, the Commission 
notes that it has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
    \13\ 15 U.S.C. 78f(b)(1).
    \14\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission believes that the Exchange's creation of a ROC as an 
independent committee to oversee the adequacy and effectiveness of the 
Exchange's regulatory responsibilities, compliance, and plans is 
appropriate and should help the Exchange to fulfill its self-regulatory 
obligations. The Commission notes that, under NYSE

[[Page 34745]]

Arca Rule 3.3(a)(2)(C), the responsibilities, enumerated functions, and 
authority of the ROC are substantially similar to those of other 
exchanges.\15\ In addition, the Commission believes that the proposed 
requirement that the members of the ROC consist of either Public 
Directors of the Exchange or directors of NYSE Regulation, who meet the 
Exchange's Public Director requirements,\16\ and the provisions 
relating to the removal of a member of the ROC either for cause or for 
failing to qualify under the Exchange's Public Director 
requirement,\17\ should help ensure the continued independence of the 
members of the ROC. The proposal to establish a ROC should assist the 
Exchange in meeting its statutory obligations to comply, and to enforce 
compliance by its members and persons associated with its members, with 
the Act, the rules and regulations thereunder, and the rules of the 
Exchange. Accordingly, the Commission finds that the proposed rule 
change is consistent with the Act.
---------------------------------------------------------------------------

    \15\ See, e.g., Bylaws of NASDAQ Stock Market LLC, Article III, 
Section 5(c); Third Amended and Restated Bylaws of BATS Exchange, 
Inc., Article V, Section 6(c); Amended and Restated Bylaws of Miami 
International Securities Exchange, LLC, Article IV, Section 4.5(c).
    \16\ See supra note 7 and accompanying text.
    \17\ See supra note 8 and accompanying text.
---------------------------------------------------------------------------

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\18\ that the proposed rule change (SR-NYSEARCA-2015-29) be, and it 
hereby is, approved.
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    \18\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\19\
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    \19\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-14829 Filed 6-16-15; 8:45 am]
 BILLING CODE 8011-01-P



                                                    34744                          Federal Register / Vol. 80, No. 116 / Wednesday, June 17, 2015 / Notices

                                                    SECURITIES AND EXCHANGE                                   who satisfies the Exchange’s Public                        the Bylaws, the Exchange proposes to
                                                    COMMISSION                                                Director requirements set forth in                         add references to the ROC, and the
                                                                                                              Article III, Section 3.02(a) of the                        Exchange proposes to add the text
                                                    [Release No. 34–75155; File No. SR–
                                                                                                              Bylaws.7 The Exchange further proposes                     ‘‘[e]xcept as otherwise provided in the
                                                    NYSEARCA–2015–29]
                                                                                                              that (i) the Board may, on affirmative                     Rules’’ to the clause that currently
                                                    Self-Regulatory Organizations; NYSE                       vote of a majority of directors, at any                    requires each committee of the Board to
                                                    Arca, Inc.; Order Approving Proposed                      time remove a member of the ROC for                        be comprised of at least 50% Public
                                                    Rule Change To Amend NYSE Arca                            cause and (ii) a failure of a member of                    Directors of the Exchange because,
                                                    Rules 3.1 and 3.3 and Section 4.01(a)                     the ROC to qualify as a Public Director                    under the proposal, the ROC may
                                                    of the Exchange’s Bylaws To Establish                     shall constitute a basis to remove a                       include directors of NYSE Regulation.11
                                                    a Regulatory Oversight Committee as                       member of the ROC for cause.8                              Lastly, the Exchange proposes to add
                                                    a Committee of the Board of Directors                        NYSE Arca Rule 3.3(a)(2)(C) would                       text to Section 4.01(a) to provide that
                                                    of the Exchange                                           set forth the functions and authority of                   vacancies in the membership of any
                                                                                                              the ROC. The ROC’s responsibilities                        committee would be filled by the Board.
                                                    June 11, 2015.                                            would be as follows:                                       III. Discussion and Commission
                                                    I. Introduction                                              • oversee the Exchange’s regulatory                     Findings
                                                                                                              and self-regulatory organization
                                                       On April 17, 2015, NYSE Arca, Inc.                     responsibilities and evaluate the                             After careful review, the Commission
                                                    (‘‘Exchange’’ or ‘‘NYSE Arca’’) filed                     adequacy and effectiveness of the                          finds that the proposed rule change is
                                                    with the Securities and Exchange                          Exchange’s regulatory and self-                            consistent with the requirements of the
                                                    Commission (‘‘Commission’’), pursuant                     regulatory organization responsibilities;                  Act and the rules and regulations
                                                    to Section 19(b)(1) of the Securities                        • assess the Exchange’s regulatory                      thereunder applicable to a national
                                                    Exchange Act of 1934 (‘‘Act’’),1 and                      performance; and                                           securities exchange.12 In particular, the
                                                    Rule 19b–4 thereunder,2 a proposed rule                      • advise and make recommendations                       Commission finds that the proposed
                                                    change to amend NYSE Arca Rules 3.1                       to the Board or other committees of the                    rule change is consistent with Section
                                                    and 3.3, and Section 4.01(a) of the                       Board about the Exchange’s regulatory                      6(b)(1) of the Act,13 which requires an
                                                    Bylaws of NYSE Arca (‘‘Bylaws’’), to                      compliance, effectiveness and plans.                       exchange to be so organized and have
                                                    establish a Regulatory Oversight                             In furtherance of the ROC’s functions,                  the capacity to carry out the purposes of
                                                    Committee (‘‘ROC’’) as a committee of                     the Exchange proposes that the ROC                         the Act and to comply, and to enforce
                                                    the board of directors of the Exchange                    shall have the authority and obligation                    compliance by its members and persons
                                                    (‘‘Board’’). The proposed rule change                     to: (i) Review the regulatory budget of                    associated with its members, with the
                                                    was published for comment in the                          the Exchange and specifically inquire                      Act, the rules and regulations
                                                    Federal Register on May 4, 2015.3 The                     into the adequacy of resources available                   thereunder, and the rules of the
                                                    Commission did not receive any                            in the budget for regulatory activities;                   exchange. The Commission also finds
                                                    comment letters regarding the proposal.                   (ii) meet regularly with the Chief                         that the proposed rule change is
                                                    This order approves the proposed rule                     Regulatory Officer (‘‘CRO’’) of the                        consistent with Section 6(b)(5) of the
                                                    change.                                                   Exchange in executive session; (iii) in                    Act,14 which requires that the rules of
                                                                                                              consultation with the Exchange’s Chief                     an exchange be designed, among other
                                                    II. Description of the Proposal
                                                                                                              Executive Officer, establish the goals,                    things, to prevent fraudulent and
                                                      The Exchange proposes to establish a                    assess the performance, and recommend                      manipulative acts and practices, to
                                                    ROC as a committee of the Board with                      the CRO’s compensation; and (iv) keep                      promote just and equitable principles of
                                                    the responsibility to independently                       the Board informed with respect to the                     trade, to remove impediments to and
                                                    monitor the Exchange’s regulatory                         foregoing matters.9                                        perfect the mechanism of a free and
                                                    operations. The Exchange proposes to                                                                                 open market and a national market
                                                                                                                 The Exchange also proposes to amend
                                                    amend NYSE Arca Rule 3.3(a) to                                                                                       system, and, in general, to protect
                                                                                                              NYSE Arca Rule 3.1(a) and Article IV,
                                                    provide for the ROC and set forth the                                                                                investors and the public interest.
                                                                                                              Section 4.01(a) of the Bylaws. The
                                                    ROC’s composition and functions. In                                                                                     The Commission believes that the
                                                                                                              Exchange proposes to amend NYSE
                                                    addition, the Exchange proposes that                                                                                 Exchange’s creation of a ROC as an
                                                                                                              Arca Rule 3.1(a) to allow NYSE
                                                    the Board shall appoint the ROC on an                                                                                independent committee to oversee the
                                                                                                              Regulation directors to serve on the
                                                    annual basis.4 Under NYSE Arca Rule                                                                                  adequacy and effectiveness of the
                                                                                                              ROC.10 In Article IV, Section 4.01(a) of
                                                    3.3(a)(2)(B), the ROC would consist of at                                                                            Exchange’s regulatory responsibilities,
                                                    least three members, each of whom                            7 Article III, Section 3.02(a) of the Bylaws requires   compliance, and plans is appropriate
                                                    would be a Public Director 5 of the                       that at least 50% of the Exchange’s directors be           and should help the Exchange to fulfill
                                                    Exchange or a director of NYSE                            Public Directors, defined as ‘‘persons from the            its self-regulatory obligations. The
                                                    Regulation, Inc. (‘‘NYSE Regulation’’),6                  public and [who] will not be, or be affiliated with,
                                                                                                              a broker-dealer in securities or employed by, or
                                                                                                                                                                         Commission notes that, under NYSE
                                                                                                              involved in any material business relationship with,
                                                      1 15 U.S.C. 78s(b)(1).                                  the Exchange or its affiliates.’’                          amended rule text would provide that committees
                                                      2 17 CFR 240.19b–4.                                        8 See Proposed NYSE Arca Rule 3.3(a)(2)(B).             of the Board ‘‘may consist partly or entirely of
                                                      3 See Securities Exchange Act Release No. 74824
                                                                                                              Under the proposal, if a ROC member’s term of              directors of the Exchange.’’
                                                    (April 28, 2015), 80 FR 25347.                            office terminates pursuant to NYSE Arca Rule                 11 The Exchange also proposes to make a
                                                      4 See Proposed NYSE Arca Rule 3.3(a)(2)(A).             3.3(a)(2)(B), and the remaining term of office of          corresponding change to the immediately
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                                                      5 See infra note 7 for the definition of ‘‘Public       such committee member at the time of termination           subsequent clause in Article IV, section 4.01(a) so
                                                    Director’’ as set forth in Article III, Section 3.02(a)   is not more than three months, during the period           that it reads as follows: ‘‘The purpose and
                                                    of the Bylaws.                                            of vacancy, the ROC would not be deemed to be in           composition of each such committee shall be as set
                                                      6 The Exchange states that NYSE Regulation is a         violation of its compositional requirements by             forth in the Rules.’’
                                                    not-for-profit subsidiary of the Exchange’s affiliate     virtue of the vacancy. See id.                               12 In approving this proposed rule change, the

                                                    New York Stock Exchange LLC that performs all of             9 See Proposed NYSE Arca Rule 3.3(a)(2)(C).             Commission notes that it has considered the
                                                    the Exchange’s regulatory functions pursuant to an           10 Specifically, the Exchange proposes to amend         proposed rule’s impact on efficiency, competition,
                                                    intercompany Regulatory Services Agreement that           NYSE Arca Rule 3.1(a) to change the current                and capital formation. See 15 U.S.C. 78c(f).
                                                                                                                                                                           13 15 U.S.C. 78f(b)(1).
                                                    gives the Exchange the contractual right to review        requirement that committees of the Board consist of
                                                    NYSE Regulation’s performance.                            ‘‘one or more directors of the Exchange.’’ The               14 15 U.S.C. 78f(b)(5).




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                                                                                 Federal Register / Vol. 80, No. 116 / Wednesday, June 17, 2015 / Notices                                                    34745

                                                    Arca Rule 3.3(a)(2)(C), the                             ‘‘Act’’),1 and Rule 19b–4 thereunder,2                 (A) Self-Regulatory Organization’s
                                                    responsibilities, enumerated functions,                 notice is hereby given that on June 9,                 Statement of the Purpose of, and
                                                    and authority of the ROC are                            2015, BATS Y-Exchange, Inc. (the                       Statutory Basis for, the Proposed Rule
                                                    substantially similar to those of other                 ‘‘Exchange’’ or ‘‘BYX’’) filed with the                Change
                                                    exchanges.15 In addition, the                           Securities and Exchange Commission
                                                                                                                                                                   1. Purpose
                                                    Commission believes that the proposed                   (‘‘Commission’’) the proposed rule
                                                    requirement that the members of the                     change as described in Items I, II and III               The Exchange proposes to: (i) Increase
                                                    ROC consist of either Public Directors of               below, which Items have been prepared                  the rebate from $0.0004 per share to
                                                    the Exchange or directors of NYSE                       by the Exchange.3 The Exchange has                     $0.0015 per share for orders that yield
                                                    Regulation, who meet the Exchange’s                     designated the proposed rule change as                 fee code A, which routes to Nasdaq and
                                                    Public Director requirements,16 and the                 one establishing or changing a member                  adds liquidity; and (ii) adopt fees for the
                                                    provisions relating to the removal of a                 due, fee, or other charge imposed by the               use of a communication and routing
                                                    member of the ROC either for cause or                   Exchange under Section 19(b)(3)(A)(ii)                 service known as BATS Connect.
                                                    for failing to qualify under the                        of the Act 4 and Rule 19b–4(f)(2)
                                                                                                                                                                   Fee Code A
                                                    Exchange’s Public Director                              thereunder,5 which renders the
                                                    requirement,17 should help ensure the                   proposed rule change effective upon                       In securities priced at or above $1.00,
                                                    continued independence of the                           filing with the Commission. The                        the Exchange currently provides a
                                                    members of the ROC. The proposal to                     Commission is publishing this notice to                rebate of $0.0004 per share for Members’
                                                    establish a ROC should assist the                       solicit comments on the proposed rule                  orders that yield fee code A, applicable
                                                    Exchange in meeting its statutory                       change from interested persons.                        to orders routed to Nasdaq that add
                                                    obligations to comply, and to enforce                                                                          liquidity. The Exchange proposes to
                                                                                                            I. Self-Regulatory Organization’s                      amend its Fee Schedule to increase this
                                                    compliance by its members and persons
                                                                                                            Statement of the Terms of Substance of                 rebate to $0.0015 per share for Members’
                                                    associated with its members, with the
                                                                                                            the Proposed Rule Change                               orders that yield fee code A. The
                                                    Act, the rules and regulations
                                                    thereunder, and the rules of the                           The Exchange filed a proposal to                    proposed change represents a pass
                                                    Exchange. Accordingly, the Commission                   amend its fees and rebates applicable to               through of the rate that BATS Trading,
                                                    finds that the proposed rule change is                  Members 6 of the Exchange pursuant to                  Inc. (‘‘BATS Trading’’), the Exchange’s
                                                    consistent with the Act.                                Rule 15.1(a) and (c) (‘‘Fee Schedule’’) to:            affiliated routing broker-dealer, will be
                                                                                                            (i) Increase the rebate from $0.0004 per               rebated for routing orders to Nasdaq
                                                    IV. Conclusion                                          share to $0.0015 per share for orders                  when it does not qualify for a volume
                                                      It is therefore ordered, pursuant to                  that yield fee code A, which routes to                 tiered rebate. The Exchange notes that
                                                    Section 19(b)(2) of the Act,18 that the                 the Nasdaq Stock Market LLC                            the proposed change is in response to
                                                    proposed rule change (SR–NYSEARCA–                      (‘‘Nasdaq’’) and adds liquidity; and (ii)              Nasdaq’s June 2015 fee change where
                                                    2015–29) be, and it hereby is, approved.                adopt fees for the use of a                            Nasdaq will no longer offer a rebate of
                                                                                                            communication and routing service                      $0.0004 per share for orders in select
                                                      For the Commission, by the Division of                known as BATS Connect.                                 symbols (‘‘Nasdaq’s Select Symbol
                                                    Trading and Markets, pursuant to delegated                 The text of the proposed rule change
                                                    authority.19                                                                                                   Program’’) to its customers, such as
                                                                                                            is available at the Exchange’s Web site                BATS Trading, and such orders will be
                                                    Robert W. Errett,                                       at www.batstrading.com, at the                         subject to the regular Nasdaq Pricing
                                                    Deputy Secretary.                                       principal office of the Exchange, and at               Schedule.7 Accordingly, when BATS
                                                    [FR Doc. 2015–14829 Filed 6–16–15; 8:45 am]             the Commission’s Public Reference                      Trading routes to Nasdaq in any symbol,
                                                    BILLING CODE 8011–01–P                                  Room.                                                  it will be rebated a standard rate of
                                                                                                            II. Self-Regulatory Organization’s                     $0.0015 per share. BATS Trading will
                                                                                                            Statement of the Purpose of, and                       pass through this rate on Nasdaq to the
                                                    SECURITIES AND EXCHANGE                                                                                        Exchange and the Exchange, in turn,
                                                    COMMISSION                                              Statutory Basis for, the Proposed Rule
                                                                                                            Change                                                 will pass through this rate to its
                                                                                                                                                                   Members.
                                                    [Release No. 34–75159; File No. SR–BYX–                    In its filing with the Commission, the
                                                    2015–28]                                                Exchange included statements                           BATS Connect
                                                                                                            concerning the purpose of and basis for                   On May 26 [sic], 2015, the Exchange
                                                    Self-Regulatory Organizations; BATS                     the proposed rule change and discussed                 filed a proposed rule change with the
                                                    Y-Exchange, Inc.; Notice of Filing and                  any comments it received on the                        Commission to adopt a communication
                                                    Immediate Effectiveness of a Proposed                   proposed rule change. The text of these                and routing service known as BATS
                                                    Rule Change Related to Fees for Use                     statements may be examined at the                      Connect.8 The Exchange now proposes
                                                    of BATS Y-Exchange, Inc.                                places specified in Item IV below. The                 to adopt fees related to the use of BATS
                                                                                                            Exchange has prepared summaries, set                   Connect that are equal to the fees
                                                    June 11, 2015.
                                                                                                            forth in Sections A, B, and C below, of                charged for an identical service, also
                                                      Pursuant to Section 19(b)(1) of the                   the most significant parts of such                     called BATS Connect, offered by the
                                                    Securities Exchange Act of 1934 (the                    statements.                                            Exchange’s affiliate, EDGX.9 BATS
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                                                      15 See, e.g., Bylaws of NASDAQ Stock Market             1 15 U.S.C. 78s(b)(1).                                 7 See Nasdaq Equity Trader Alert #2015–70,
                                                    LLC, Article III, Section 5(c); Third Amended and         2 17 CFR 240.19b–4.                                  Nasdaq Ends Access Fee Experiment, available at
                                                    Restated Bylaws of BATS Exchange, Inc., Article V,        3 The Commission notes that a previous version
                                                                                                                                                                   http://www.nasdaqtrader.com/
                                                    Section 6(c); Amended and Restated Bylaws of            of the proposal was filed as SR–BYX–2015–27. The       TraderNews.aspx?id=ETA2015-70.
                                                    Miami International Securities Exchange, LLC,           proposal was withdrawn on June 9, 2015.                  8 See file no. SR–BYX–2015–26.
                                                    Article IV, Section 4.5(c).                               4 15 U.S.C. 78s(b)(3)(A)(ii).                          9 See the EDGX fee schedule available at http://
                                                      16 See supra note 7 and accompanying text.              5 17 CFR 240.19b–4(f)(2).
                                                                                                                                                                   batstrading.com/support/fee_schedule/edgx/. See
                                                      17 See supra note 8 and accompanying text.              6 A Member is defined as ‘‘any registered broker     also Securities Exchange Act Release No. 73780
                                                      18 15 U.S.C. 78s(b)(2).
                                                                                                            or dealer that has been admitted to membership in      (December 8, 2014), 79 FR 73942 (December 12,
                                                      19 17 CFR 200.30–3(a)(12).                            the Exchange.’’ See Exchange Rule 1.5(n).                                                         Continued




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Document Created: 2015-12-15 14:22:45
Document Modified: 2015-12-15 14:22:45
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 34744 

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