80_FR_42706 80 FR 42569 - Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use of BATS Exchange, Inc.

80 FR 42569 - Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use of BATS Exchange, Inc.

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 137 (July 17, 2015)

Page Range42569-42571
FR Document2015-17492

Federal Register, Volume 80 Issue 137 (Friday, July 17, 2015)
[Federal Register Volume 80, Number 137 (Friday, July 17, 2015)]
[Notices]
[Pages 42569-42571]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-17492]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75437; File No. SR-BATS-2015-53]


Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change Related to 
Fees for Use of BATS Exchange, Inc.

July 13, 2015.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on July 6, 2015, BATS Exchange, Inc. (``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 Exchange has designated 
the proposed rule change as one establishing or changing a member due, 
fee, or other charge imposed by the Exchange under Section 
19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\ 
which renders the proposed rule change effective upon filing with the 
Commission. 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.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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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 its fees and rebates 
applicable to Members \5\ and non-Members of the Exchange pursuant to 
BZX Rule 15.1(a) and (c) (``Fee Schedule'') to modify its fees for 
physical connectivity. Changes to the fee schedule pursuant to this 
proposal are effective upon filing.
---------------------------------------------------------------------------

    \5\ The term ``Member'' is defined as ``any registered broker or 
dealer that has been admitted to membership in the Exchange.'' See 
Exchange Rule 1.5(n).
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    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
    The Exchange proposes to amend its Fee Schedule to modify its fees 
for physical connectivity. A physical port is utilized by a Member or 
non-Member to connect to the Exchange at the data centers where the 
Exchange's servers are located. The Exchange currently maintains a 
presence in two third-party data centers: (i) The primary data center 
where the Exchange's business is primarily conducted on a daily basis, 
and (ii) a secondary data center, which is predominantly maintained for 
business continuity purposes. The Exchange currently assesses the 
following physical connectivity fees for Members and non-Members on a 
monthly basis: $1,000 per physical port that connects to the System \6\ 
via 1 gigabyte circuit; and $2,500 per physical port that connects to 
the System via 10 gigabyte circuit.
---------------------------------------------------------------------------

    \6\ The term ``System'' is defined as ``the electronic 
communications and trading facility designated by the Board through 
which securities orders of Users are consolidated for ranking, 
execution and, when applicable, routing away.'' See Exchange Rule 
1.5(cc).
---------------------------------------------------------------------------

    The Exchange now proposes to amend its physical connectivity fees 
to align the Exchange's fees with its affiliates.\7\ The Exchange 
proposes to increase the fee per physical port that connects to the 
System via: (i) 1 gigabyte circuit from $1,000 per month to $2,000 per 
month; and (ii) 10 gigabyte circuit from $2,500 per month to $4,000 per 
month.
---------------------------------------------------------------------------

    \7\ The Exchange's affiliates are EDGX Exchange, Inc. 
(``EDGX''), EDGA Exchange, Inc. (``EDGA'') and BATS Y-Exchange, Inc. 
(``BYX'', together with the Exchange, EDGA and EDGX, the ``BATS 
Exchanges''). The Exchange notes that each of its affiliates has 
also filed or will also file proposed rule changes with Commission 
to adopt similar physical connectivity fees.
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Implementation Date
    The Exchange proposes to implement this amendment to its Fee 
Schedule immediately.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with

[[Page 42570]]

the objectives of Section 6 of the Act,\8\ in general, and furthers the 
objectives of Section 6(b)(4),\9\ in particular, as it is designed to 
provide for the equitable allocation of reasonable dues, fees and other 
charges among its Members and other persons using its facilities. The 
Exchange also notes that it operates in a highly-competitive market in 
which market participants can readily direct order flow to competing 
venues if they deem fee levels at a particular venue to be excessive. 
The proposed rule change reflects a competitive pricing structure 
designed to incent market participants to direct their order flow to 
the Exchange. The Exchange believes that the proposed rates are 
equitable and non-discriminatory in that they apply uniformly to all 
Members. The Exchange believes the fees and credits remain competitive 
with those charged by other venues and therefore continue to be 
reasonable and equitably allocated to Members.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f.
    \9\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    The Exchange believes that the proposal represents an equitable 
allocation of reasonable dues, fees, and other charges as its fees for 
physical connectivity are reasonably constrained by competitive 
alternatives. If a particular exchange charges excessive fees for 
connectivity, affected Members and non-Members may opt to terminate 
their connectivity arrangements with that exchange, and adopt a 
possible range of alternative strategies, including routing to the 
applicable exchange through another participant or market center or 
taking that exchange's data indirectly. Accordingly, if the Exchange 
charges excessive fees, it would stand to lose not only connectivity 
revenues but also revenues associated with the execution of orders 
routed to it, and, to the extent applicable, market data revenues. The 
Exchange believes that this competitive dynamic imposes powerful 
restraints on the ability of any exchange to charge unreasonable fees 
for connectivity.
    Furthermore, the proposed rule change is also an equitable 
allocation of reasonable dues, fees, and other charges as the Exchange 
believes that the increased fees obtained will enable it to cover its 
increased infrastructure costs associated with establishing physical 
ports to connect to the Exchange's Systems. The additional revenue from 
the increased fees will also enable the Exchange to continue to 
maintain and improve its market technology and services. The Exchange 
believes that the proposed fees for 1 gigabyte circuit of $2,000 per 
month and for 10 gigabyte circuit of $4,000 per month are reasonable in 
that they are less than analogous fees charged by the Nasdaq Stock 
Market LLC (``Nasdaq''), which are $2,500 per month for 1 gigabyte 
connectivity and range from $10,000--$15,000 per month for 10 gigabyte 
circuits.\10\ In addition, the Exchange proposed physical connectivity 
fees are designed to align the Exchange's fees with its affiliates.\11\
---------------------------------------------------------------------------

    \10\ See Nasdaq Rule 7034(b).
    \11\ See supra note 7.
---------------------------------------------------------------------------

    Finally, the Exchange believes that the proposed rates are 
equitable and non-discriminatory in that they apply uniformly to all 
Members and non-Members. Members and non-Members will continue to 
choose whether they want more than one physical port and choose the 
method of connectivity based on their specific needs. All Exchange 
Members that voluntarily select various service options will be charged 
the same amount for the same services. As is true of all physical 
connectivity, all Members and non-Members have the option to select any 
connectivity option, and there is no differentiation with regard to the 
fees charged for the service.

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

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. As discussed above, the 
Exchange believes that fees for connectivity are constrained by the 
robust competition for order flow among exchanges and non-exchange 
markets. Further, excessive fees for connectivity, including port fee 
access, would serve to impair an exchange's ability to compete for 
order flow rather than burdening competition. The proposal to increase 
the fees for physical connectivity would bring the fees charged by the 
Exchange closer to similar fees charged for physical connectivity by 
other exchanges.\12\
---------------------------------------------------------------------------

    \12\ See supra note 10.
---------------------------------------------------------------------------

    In addition, the proposed rule change does not impose any burden on 
intramarket competition as the fees are uniform for all Members and 
non-Members. The Exchange notes that Members and non-Members also have 
the ability to obtain access to these services without the need for an 
independent physical port connection, such as through alternative means 
of financial extranets and service bureaus that act as a conduit for 
orders entered by Members and non-Members.

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 unsolicited 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 \13\ and paragraph (f) of Rule 19b-4 
thereunder.\14\ 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.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 17 CFR 240.19b-4(f).
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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 rule-comments@sec.gov. Please include 
File Number SR-BATS-2015-53 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-2015-53. 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

[[Page 42571]]

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 also will 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-2015-53 and should be submitted on or before August 
7, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-17492 Filed 7-16-15; 8:45 am]
 BILLING CODE 8011-01-P



                                                                                   Federal Register / Vol. 80, No. 137 / Friday, July 17, 2015 / Notices                                                        42569

                                                Electronic Comments                                        SECURITIES AND EXCHANGE                                 the proposed rule change and discussed
                                                                                                           COMMISSION                                              any comments it received on the
                                                  • Use the Commission’s Internet                                                                                  proposed rule change. The text of these
                                                comment form (http://www.sec.gov/                          [Release No. 34–75437; File No. SR–BATS–
                                                                                                           2015–53]
                                                                                                                                                                   statements may be examined at the
                                                rules/sro.shtml); or                                                                                               places specified in Item IV below. The
                                                  • Send an email to rule-comments@                        Self-Regulatory Organizations; BATS                     Exchange has prepared summaries, set
                                                sec.gov. Please include File Number SR–                    Exchange, Inc.; Notice of Filing and                    forth in Sections A, B, and C below, of
                                                CBOE–2015–066 on the subject line.                         Immediate Effectiveness of a Proposed                   the most significant parts of such
                                                                                                           Rule Change Related to Fees for Use                     statements.
                                                Paper Comments                                             of BATS Exchange, Inc.                                  A. Self-Regulatory Organization’s
                                                  • Send paper comments in triplicate                      July 13, 2015.                                          Statement of the Purpose of, and
                                                to Secretary, Securities and Exchange                         Pursuant to Section 19(b)(1) of the                  Statutory Basis for, the Proposed Rule
                                                Commission, 100 F Street NE.,                              Securities Exchange Act of 1934                         Change
                                                Washington, DC 20549–1090.                                 (‘‘Act’’),1 and Rule 19b–4 thereunder,2                 1. Purpose
                                                All submissions should refer to File                       notice is hereby given that on July 6,
                                                                                                           2015, BATS Exchange, Inc. (‘‘Exchange’’                    The Exchange proposes to amend its
                                                Number SR–CBOE–2015–066. This file                                                                                 Fee Schedule to modify its fees for
                                                                                                           or ‘‘BATS’’) filed with the Securities
                                                number should be included on the                                                                                   physical connectivity. A physical port is
                                                                                                           and Exchange Commission
                                                subject line if email is used. To help the                                                                         utilized by a Member or non-Member to
                                                                                                           (‘‘Commission’’) the proposed rule
                                                Commission process and review your                         change as described in Items I, II, and                 connect to the Exchange at the data
                                                comments more efficiently, please use                      III, below, which Items have been                       centers where the Exchange’s servers are
                                                only one method. The Commission will                       prepared by the Exchange. The                           located. The Exchange currently
                                                post all comments on the Commission’s                      Exchange has designated the proposed                    maintains a presence in two third-party
                                                Internet Web site (http://www.sec.gov/                     rule change as one establishing or                      data centers: (i) The primary data center
                                                rules/sro.shtml). Copies of the                            changing a member due, fee, or other                    where the Exchange’s business is
                                                submission, all subsequent                                 charge imposed by the Exchange under                    primarily conducted on a daily basis,
                                                amendments, all written statements                         Section 19(b)(3)(A)(ii) of the Act 3 and                and (ii) a secondary data center, which
                                                with respect to the proposed rule                          Rule 19b–4(f)(2) thereunder,4 which                     is predominantly maintained for
                                                change that are filed with the                             renders the proposed rule change                        business continuity purposes. The
                                                Commission, and all written                                effective upon filing with the                          Exchange currently assesses the
                                                communications relating to the                             Commission. The Commission is                           following physical connectivity fees for
                                                proposed rule change between the                           publishing this notice to solicit                       Members and non-Members on a
                                                Commission and any person, other than                      comments on the proposed rule change                    monthly basis: $1,000 per physical port
                                                those that may be withheld from the                        from interested persons.                                that connects to the System 6 via 1
                                                public in accordance with the                                                                                      gigabyte circuit; and $2,500 per physical
                                                                                                           I. Self-Regulatory Organization’s                       port that connects to the System via 10
                                                provisions of 5 U.S.C. 552, will be                        Statement of the Terms of Substance of                  gigabyte circuit.
                                                available for Web site viewing and                         the Proposed Rule Change
                                                printing in the Commission’s Public                                                                                   The Exchange now proposes to amend
                                                                                                              The Exchange filed a proposal to                     its physical connectivity fees to align
                                                Reference Room, 100 F Street NE.,
                                                                                                           amend its fees and rebates applicable to                the Exchange’s fees with its affiliates.7
                                                Washington, DC 20549, on official                          Members 5 and non-Members of the                        The Exchange proposes to increase the
                                                business days between the hours of                         Exchange pursuant to BZX Rule 15.1(a)                   fee per physical port that connects to
                                                10:00 a.m. and 3:00 p.m. Copies of the                     and (c) (‘‘Fee Schedule’’) to modify its                the System via: (i) 1 gigabyte circuit
                                                filing also will be available for                          fees for physical connectivity. Changes                 from $1,000 per month to $2,000 per
                                                inspection and copying at the principal                    to the fee schedule pursuant to this                    month; and (ii) 10 gigabyte circuit from
                                                office of the Exchange. All comments                       proposal are effective upon filing.                     $2,500 per month to $4,000 per month.
                                                received will be posted without change;                       The text of the proposed rule change
                                                the Commission does not edit personal                      is available at the Exchange’s Web site                 Implementation Date
                                                identifying information from                               at www.batstrading.com, at the                            The Exchange proposes to implement
                                                submissions. You should submit only                        principal office of the Exchange, and at                this amendment to its Fee Schedule
                                                information that you wish to make                          the Commission’s Public Reference                       immediately.
                                                available publicly. All submissions                        Room.
                                                                                                                                                                   2. Statutory Basis
                                                should refer to File Number SR–CBOE–                       II. Self-Regulatory Organization’s
                                                2015–066 and should be submitted on                        Statement of the Purpose of, and                          The Exchange believes that the
                                                or before August 7, 2015.                                  Statutory Basis for, the Proposed Rule                  proposed rule change is consistent with
                                                  For the Commission, by the Division of                   Change
                                                                                                                                                                      6 The term ‘‘System’’ is defined as ‘‘the electronic
                                                Trading and Markets, pursuant to delegated                    In its filing with the Commission, the               communications and trading facility designated by
                                                authority.10                                               Exchange included statements                            the Board through which securities orders of Users
                                                Robert W. Errett,                                          concerning the purpose of and basis for                 are consolidated for ranking, execution and, when
                                                                                                                                                                   applicable, routing away.’’ See Exchange Rule
srobinson on DSK5SPTVN1PROD with NOTICES




                                                Deputy Secretary.                                                                                                  1.5(cc).
                                                                                                                1 15
                                                                                                                  U.S.C. 78s(b)(1).
                                                [FR Doc. 2015–17534 Filed 7–16–15; 8:45 am]                                                                           7 The Exchange’s affiliates are EDGX Exchange,
                                                                                                                2 17
                                                                                                                  CFR 240.19b–4.
                                                BILLING CODE 8011–01–P                                                                                             Inc. (‘‘EDGX’’), EDGA Exchange, Inc. (‘‘EDGA’’) and
                                                                                                             3 15 U.S.C. 78s(b)(3)(A)(ii).
                                                                                                                                                                   BATS Y-Exchange, Inc. (‘‘BYX’’, together with the
                                                                                                             4 17 CFR 240.19b–4(f)(2).
                                                                                                                                                                   Exchange, EDGA and EDGX, the ‘‘BATS
                                                                                                             5 The term ‘‘Member’’ is defined as ‘‘any             Exchanges’’). The Exchange notes that each of its
                                                                                                           registered broker or dealer that has been admitted      affiliates has also filed or will also file proposed
                                                                                                           to membership in the Exchange.’’ See Exchange           rule changes with Commission to adopt similar
                                                  10 17   CFR 200.30–3(a)(12).                             Rule 1.5(n).                                            physical connectivity fees.



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                                                42570                             Federal Register / Vol. 80, No. 137 / Friday, July 17, 2015 / Notices

                                                the objectives of Section 6 of the Act,8                  circuit of $4,000 per month are                         C. Self-Regulatory Organization’s
                                                in general, and furthers the objectives of                reasonable in that they are less than                   Statement on Comments on the
                                                Section 6(b)(4),9 in particular, as it is                 analogous fees charged by the Nasdaq                    Proposed Rule Change Received From
                                                designed to provide for the equitable                     Stock Market LLC (‘‘Nasdaq’’), which                    Members, Participants, or Others
                                                allocation of reasonable dues, fees and                   are $2,500 per month for 1 gigabyte                       The Exchange has not solicited, and
                                                other charges among its Members and                       connectivity and range from $10,000—                    does not intend to solicit, comments on
                                                other persons using its facilities. The                   $15,000 per month for 10 gigabyte                       this proposed rule change. The
                                                Exchange also notes that it operates in                   circuits.10 In addition, the Exchange                   Exchange has not received any
                                                a highly-competitive market in which                      proposed physical connectivity fees are                 unsolicited written comments from
                                                market participants can readily direct                    designed to align the Exchange’s fees                   Members or other interested parties.
                                                order flow to competing venues if they                    with its affiliates.11
                                                deem fee levels at a particular venue to                    Finally, the Exchange believes that                   III. Date of Effectiveness of the
                                                be excessive. The proposed rule change                    the proposed rates are equitable and                    Proposed Rule Change and Timing for
                                                reflects a competitive pricing structure                  non-discriminatory in that they apply                   Commission Action
                                                designed to incent market participants                    uniformly to all Members and non-                          The foregoing rule change has become
                                                to direct their order flow to the                         Members. Members and non-Members                        effective pursuant to Section 19(b)(3)(A)
                                                Exchange. The Exchange believes that                      will continue to choose whether they                    of the Act 13 and paragraph (f) of Rule
                                                the proposed rates are equitable and                      want more than one physical port and                    19b–4 thereunder.14 At any time within
                                                non-discriminatory in that they apply                     choose the method of connectivity                       60 days of the filing of the proposed rule
                                                uniformly to all Members. The                             based on their specific needs. All                      change, the Commission summarily may
                                                Exchange believes the fees and credits                    Exchange Members that voluntarily                       temporarily suspend such rule change if
                                                remain competitive with those charged                     select various service options will be                  it appears to the Commission that such
                                                by other venues and therefore continue                    charged the same amount for the same                    action is necessary or appropriate in the
                                                to be reasonable and equitably allocated                  services. As is true of all physical                    public interest, for the protection of
                                                to Members.                                               connectivity, all Members and non-                      investors, or otherwise in furtherance of
                                                   The Exchange believes that the                                                                                 the purposes of the Act.
                                                                                                          Members have the option to select any
                                                proposal represents an equitable
                                                                                                          connectivity option, and there is no                    IV. Solicitation of Comments
                                                allocation of reasonable dues, fees, and
                                                                                                          differentiation with regard to the fees
                                                other charges as its fees for physical                                                                              Interested persons are invited to
                                                                                                          charged for the service.
                                                connectivity are reasonably constrained                                                                           submit written data, views, and
                                                by competitive alternatives. If a                         B. Self-Regulatory Organization’s                       arguments concerning the foregoing,
                                                particular exchange charges excessive                     Statement on Burden on Competition                      including whether the proposed rule
                                                fees for connectivity, affected Members                                                                           change is consistent with the Act.
                                                and non-Members may opt to terminate                         The Exchange does not believe that
                                                                                                                                                                  Comments may be submitted by any of
                                                their connectivity arrangements with                      the proposed rule change will impose
                                                                                                                                                                  the following methods:
                                                that exchange, and adopt a possible                       any burden on competition not
                                                range of alternative strategies, including                necessary or appropriate in furtherance                 Electronic Comments
                                                routing to the applicable exchange                        of the purposes of the Act. As discussed                  • Use the Commission’s Internet
                                                through another participant or market                     above, the Exchange believes that fees                  comment form (http://www.sec.gov/
                                                center or taking that exchange’s data                     for connectivity are constrained by the                 rules/sro.shtml); or
                                                indirectly. Accordingly, if the Exchange                  robust competition for order flow among                   • Send an email to rule-comments@
                                                charges excessive fees, it would stand to                 exchanges and non-exchange markets.                     sec.gov. Please include File Number SR–
                                                lose not only connectivity revenues but                   Further, excessive fees for connectivity,               BATS–2015–53 on the subject line.
                                                also revenues associated with the                         including port fee access, would serve
                                                                                                          to impair an exchange’s ability to                      Paper Comments
                                                execution of orders routed to it, and, to
                                                the extent applicable, market data                        compete for order flow rather than                        • Send paper comments in triplicate
                                                revenues. The Exchange believes that                      burdening competition. The proposal to                  to Secretary, Securities and Exchange
                                                this competitive dynamic imposes                          increase the fees for physical                          Commission, 100 F Street NE.,
                                                powerful restraints on the ability of any                 connectivity would bring the fees                       Washington, DC 20549–1090.
                                                exchange to charge unreasonable fees                      charged by the Exchange closer to                       All submissions should refer to File
                                                for connectivity.                                         similar fees charged for physical                       Number SR–BATS–2015–53. This file
                                                   Furthermore, the proposed rule                         connectivity by other exchanges.12                      number should be included on the
                                                change is also an equitable allocation of                    In addition, the proposed rule change                subject line if email is used. To help the
                                                reasonable dues, fees, and other charges                  does not impose any burden on                           Commission process and review your
                                                as the Exchange believes that the                         intramarket competition as the fees are                 comments more efficiently, please use
                                                increased fees obtained will enable it to                 uniform for all Members and non-                        only one method. The Commission will
                                                cover its increased infrastructure costs                  Members. The Exchange notes that                        post all comments on the Commission’s
                                                associated with establishing physical                     Members and non-Members also have                       Internet Web site (http://www.sec.gov/
                                                ports to connect to the Exchange’s                        the ability to obtain access to these                   rules/sro.shtml). Copies of the
                                                Systems. The additional revenue from                      services without the need for an                        submission, all subsequent
                                                the increased fees will also enable the                   independent physical port connection,                   amendments, all written statements
srobinson on DSK5SPTVN1PROD with NOTICES




                                                Exchange to continue to maintain and                      such as through alternative means of                    with respect to the proposed rule
                                                improve its market technology and                         financial extranets and service bureaus                 change that are filed with the
                                                services. The Exchange believes that the                  that act as a conduit for orders entered                Commission, and all written
                                                proposed fees for 1 gigabyte circuit of                   by Members and non-Members.                             communications relating to the
                                                $2,000 per month and for 10 gigabyte                                                                              proposed rule change between the
                                                                                                               10 See Nasdaq Rule 7034(b).
                                                  8 15 U.S.C. 78f.                                             11 See supra note 7.                                 13 15   U.S.C. 78s(b)(3)(A).
                                                  9 15 U.S.C. 78f(b)(4).                                       12 See supra note 10.                                14 17   CFR 240.19b–4(f).



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                                                                                   Federal Register / Vol. 80, No. 137 / Friday, July 17, 2015 / Notices                                            42571

                                                Commission and any person, other than                      variable annuity contracts (the                       Account on October 16, 2006, under
                                                those that may be withheld from the                        ‘‘Contracts’’), each funded through the               Illinois law.
                                                public in accordance with the                              Separate Accounts.                                       2. Each of the Separate Accounts
                                                provisions of 5 U.S.C. 552, will be                        DATES: Filing Date: The application was               meets the definition of ‘‘separate
                                                available for Web site viewing and                         filed on July 25, 2014, and amended on                account’’ as defined in Section 2(a)(37)
                                                printing in the Commission’s Public                        January 14, 2015, and May 27, 2015.                   of the 1940 Act. The Separate Accounts
                                                Reference Room, 100 F Street NE.,                          HEARING OR NOTIFICATION OF HEARING: An                are registered with the Commission
                                                Washington, DC 20549, on official                          order granting the requested relief will              under the 1940 Act as unit investment
                                                business days between the hours of                         be issued unless the Commission orders                trusts. The assets of the Separate
                                                10:00 a.m. and 3:00 p.m. Copies of such                    a hearing. Interested persons may                     Accounts support the Contracts, and
                                                filing also will be available for                          request a hearing by writing to the                   interests in the Separate Accounts
                                                inspection and copying at the principal                    Commission’s Secretary and serving                    offered through such Contracts have
                                                office of the Exchange. All comments                       applicants with a copy of the request,                been registered under the Securities Act
                                                received will be posted without change;                    personally or by mail. Hearing requests               of 1933 (‘‘1933 Act’’) on Form N–4. The
                                                the Commission does not edit personal                      should be received by the Commission                  application sets forth the registration
                                                identifying information from                               by 5:30 p.m. on August 6, 2015, and                   statement file numbers for the Contracts
                                                submissions. You should submit only                        should be accompanied by proof of                     and the Separate Accounts. Horace
                                                information that you wish to make                          service on applicants, in the form of an              Mann is the legal owner of the assets in
                                                available publicly. All submissions                        affidavit or, for lawyers, a certificate of           the Separate Accounts. The assets of the
                                                should refer to File Number SR–BATS–                       service. Pursuant to Rule 0–5 under the               Separate Accounts may not be
                                                2015–53 and should be submitted on or                      1940 Act, hearing requests should state               chargeable with liabilities arising out of
                                                before August 7, 2015.                                     the nature of the writer’s interest, any              any other business of Horace Mann.
                                                                                                           facts bearing upon the desirability of a                 3. The Contracts are issued either as
                                                  For the Commission, by the Division of                                                                         individual or group contracts, with
                                                Trading and Markets, pursuant to delegated                 hearing on the matter, the reason for the
                                                                                                           request, and the issues contested.                    group contract participants acquiring
                                                authority.15
                                                                                                           Persons who wish to be notified of a                  certain ownership rights as described in
                                                Brent J. Fields,                                                                                                 the group contract or plan documents.
                                                Secretary.                                                 hearing may request notification by
                                                                                                                                                                 Contract owners and participants in
                                                [FR Doc. 2015–17492 Filed 7–16–15; 8:45 am]
                                                                                                           writing to the Commission’s Secretary.
                                                                                                                                                                 group contracts (each a ‘‘Contract
                                                                                                           ADDRESSES: Secretary, U.S. Securities
                                                BILLING CODE 8011–01–P                                                                                           owner’’) may allocate some or all of
                                                                                                           and Exchange Commission, 100 F Street                 their Contract value to one or more
                                                                                                           NE., Washington, DC 20549–1090;                       subaccounts available as investment
                                                SECURITIES AND EXCHANGE                                    Applicants: Elizabeth E. Arthur, Esq.,                options under their respective Contract.
                                                COMMISSION                                                 Maureen Bolinger, Horace Mann Life                    Each subaccount corresponds to a
                                                                                                           Insurance Company, One Horace Mann                    portfolio of an underlying registered
                                                [Release No. IC–31714; File No. 812–14336]                 Plaza, Springfield, Illinois 62715.                   open-end management investment
                                                Horace Mann Life Insurance Company,                        FOR FURTHER INFORMATION CONTACT:                      company in which the Separate
                                                et al; Notice of Application                               Michael S. Didiuk, Senior Counsel, at                 Account invests. A Contract owner may
                                                                                                           (202) 551–6839, or Holly L. Hunter-Ceci,              also invest some or all of his/her
                                                July 13, 2015.                                             Branch Chief, at (202) 551–6825                       Contract value to a fixed account
                                                AGENCY:   Securities and Exchange                          (Division of Investment Management,                   investment option, which is supported
                                                Commission (‘‘Commission’’).                               Chief Counsel’s Office).                              by assets of Horace Mann’s general
                                                ACTION: Notice of application for an                       SUPPLEMENTARY INFORMATION: The                        account.
                                                order approving the substitution of                        following is a summary of the                            4. The Applicants state that under the
                                                certain securities pursuant to Section                     application. The complete application                 Contracts, Horace Mann reserves the
                                                26(c) of the Investment Company Act of                     may be obtained via the Commission’s                  right to substitute shares of one portfolio
                                                1940, as amended (the ‘‘1940 Act’’).                       Web site by searching for the file                    for shares of another portfolio if: (i)
                                                                                                           number, or an applicant using the                     Shares of a registered open-end
                                                APPLICANTS:  Horace Mann Life                              Company name box, at http://                          management investment company are
                                                Insurance Company (‘‘Horace Mann’’),                       www.sec.gov/search/search.htm or by                   no longer available for investment by
                                                and Horace Mann Life Insurance                             calling (202) 551–8090.                               the Separate Account; or (ii) Horace
                                                Company Separate Account and Horace                                                                              Mann determines that further
                                                Mann Life Insurance Company                                Applicants’ Representations                           investments in a registered open-end
                                                Qualified Group Annuity Separate                             1. Horace Mann is a stock life                      management investment company are
                                                Account (collectively, the ‘‘Separate                      insurance company organized under the                 inappropriate in view of the purposes
                                                Accounts,’’ and together with Horace                       laws of Illinois. Horace Mann is engaged              and objectives of a Contract.
                                                Mann, the ‘‘Applicants’’).                                 in the sale of individual and group life                 5. The Applicants propose the
                                                SUMMARY OF APPLICATION: The                                insurance and annuity contracts on a                  substitution of shares of the Existing
                                                Applicants seek an order pursuant to                       non-participating basis. Horace Mann is               Portfolios with shares of the
                                                Section 26(c) of the 1940 Act approving                    an indirect wholly owned subsidiary of                Replacement Portfolios under the
                                                the substitution of shares issued by                       Horace Mann Educators Corporation, a                  Contracts, each funded through the
                                                certain investment portfolios (the                         publicly-held insurance holding                       Separate Accounts. The Separate
srobinson on DSK5SPTVN1PROD with NOTICES




                                                ‘‘Existing Portfolios’’) of registered                     company traded on the New York Stock                  Accounts are segmented into
                                                investment companies with shares of                        Exchange. Horace Mann established the                 subaccounts, and certain of these
                                                certain investment portfolios (the                         Horace Mann Life Insurance Company                    subaccounts invest in the Existing
                                                ‘‘Replacement Portfolios’’) of registered                  Separate Account on October 9, 1965,                  Portfolios. Each subaccount’s income,
                                                investment companies, under certain                        under Illinois law, and established the               gains, and losses, whether or not
                                                                                                           Horace Mann Life Insurance Company                    realized, are credited to or charged
                                                  15 17   CFR 200.30–3(a)(12).                             Qualified Group Annuity Separate                      against the amounts allocated to that


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Document Created: 2018-02-23 09:21:11
Document Modified: 2018-02-23 09:21:11
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 42569 

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