80_FR_45712 80 FR 45566 - Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend the Pilot Period of the BATS Exchange, Inc. Supplemental Competitive Liquidity Provider Program

80 FR 45566 - Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend the Pilot Period of the BATS Exchange, Inc. Supplemental Competitive Liquidity Provider Program

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 146 (July 30, 2015)

Page Range45566-45568
FR Document2015-18636

Federal Register, Volume 80 Issue 146 (Thursday, July 30, 2015)
[Federal Register Volume 80, Number 146 (Thursday, July 30, 2015)]
[Notices]
[Pages 45566-45568]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-18636]


=======================================================================
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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75518; File No. SR-BATS-2015-55


Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Extend 
the Pilot Period of the BATS Exchange, Inc. Supplemental Competitive 
Liquidity Provider Program

July 24, 2015.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on July 23, 2015, BATS Exchange, Inc. (the ``Exchange'' or 
``BATS'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I and 
II below, which Items have been prepared by the Exchange. The Exchange 
has designated this proposal as a ``non-controversial'' proposed rule 
change pursuant to section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6)(iii) thereunder,\4\ which renders it 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).
    \4\ 17 CFR 240.19b-4(f)(6)(iii).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange is proposing to extend the pilot period for the 
Exchange's Supplemental Competitive Liquidity Provider Program (the 
``Program''), which is currently set to expire on July 28, 2015, for 3 
months, to expire on October 28, 2015.
    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
Background
    On August 30, 2011, the Exchange received approval of rules 
applicable to the qualification, listing and delisting of securities of 
issuers on the Exchange.\5\ More recently, the Exchange received 
approval to operate a pilot program that is designed to incentivize 
certain Market Makers \6\ registered with the Exchange as ETP CLPs, as 
defined in Interpretation and Policy .03 to Rule 11.8, to enhance 
liquidity on the Exchange in certain ETPs \7\ listed on the Exchange 
and thereby qualify to receive part of a daily rebate as part of the 
Program under Interpretation and Policy .03 to Rule 11.8.\8\
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    \5\ See Securities Exchange Act Release No. 65225 (August 30, 
2011), 76 FR 55148 (September 6, 2011) (SR-BATS-2011-018).
    \6\ As defined in BATS Rules, the term ``Market Maker'' means a 
Member that acts a as a market maker pursuant to chapter XI of BATS 
Rules.
    \7\ ETP is defined in Interpretation and Policy .03(b)(4) to 
Rule 11.8.
    \8\ See Securities Exchange Act Release No. 72692 (July 28, 
2014), 79 FR 44908 (August 1, 2014) (SR-BATS-2014-022) (``CLP 
Approval Order'').
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    The Program was approved by the Commission on a pilot basis running 
one-year from the date of implementation.\9\ The Commission approved 
the Program on July 28, 2014.\10\ The Exchange implemented the Program 
on July 28, 2014 and the pilot period for the Program is scheduled to 
end on July 28, 2015.
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    \9\ See id at 44909.
    \10\ Id.
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Proposal To Extend the Operation of the Program
    The Exchange established the Program in order to enhance liquidity 
on the Exchange in certain ETPs listed on the Exchange (and thereby 
enhance the Exchange's ability to compete as a listing venue) by 
providing a mechanism by which ETP CLPs compete for part of a daily 
quoting incentive on the basis of providing the most aggressive quotes 
with the greatest amount of size. Such competition has the ability to 
reduce spreads, facilitate the price discovery process, and reduce 
costs for investors trading in such securities, thereby promoting 
capital formation and helping the Exchange to compete as a listing 
venue. The

[[Page 45567]]

Exchange believes that extending the pilot is appropriate because it 
will allow the Exchange and the Commission additional time to analyze 
data regarding the Program that the Exchange has committed to 
provide.\11\ As such, the Exchange believes that it is appropriate to 
extend the current operation of the Program. Further information 
related to the Program including data can be found on the Exchange's 
Web site.\12\ Through this filing, the Exchange seeks to extend the 
current pilot period of the Program until October 28, 2015.
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    \11\ See CLP Approval Order, supra note 8 at 44913.
    \12\ See http://www.bats.com/us/equities/listings/clp_reports/.
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with the 
requirements of the Act and the rules and regulations thereunder that 
are applicable to a national securities exchange, and, in particular, 
with the requirements of section 6(b) of the Act.\13\ In particular, 
the Exchange believes the proposed change furthers the objectives of 
section 6(b)(5) of the Act,\14\ in that it is designed to prevent 
fraudulent and manipulative acts and practices, to promote just and 
equitable principles of trade, to foster cooperation and coordination 
with persons engaged in facilitating transactions in securities, and to 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system. The Exchange believes that 
extending the pilot period for the Program is consistent with these 
principles because the Program is reasonably designed to enhance quote 
competition, improve liquidity in securities listed on the Exchange, 
support the quality of price discovery, promote market transparency, 
and increase competition for listings and trade executions, while 
reducing spreads and transaction costs in such securities. Maintaining 
and increasing liquidity in Exchange-listed securities will help raise 
investors' confidence in the fairness of the market and their 
transactions. The extension of the pilot period will allow the 
Commission and the Exchange to continue to monitor the Program for its 
potential effects on public price discovery, and on the broader market 
structure.
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    \13\ 15 U.S.C. 78f(b).
    \14\ 15 U.S.C. 78f(b)(5).
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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 that is not necessary or appropriate 
in furtherance of the purposes of the Act. The proposed rule change 
extends an established pilot program for 3 months, thus allowing the 
Program to enhance competition in both the listings market and in 
competition for market makers. The Program will continue to promote 
competition in the listings market by providing issuers with a vehicle 
for paying the Exchange additional fees in exchange for incentivizing 
tighter spreads and deeper liquidity in listed securities and allow the 
Exchange to continue to compete with similar programs at Nasdaq Stock 
Market LLC \15\ and NYSE Arca Equities, Inc. \16\
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    \15\ See Securities Exchange Act Release No. 69195 (March 20, 
2013), 78 FR 18393 (March 26, 2013) (SR-NASDAQ-2012-137).
    \16\ See Securities Exchange Act Release No. 69335 (April 5, 
2013), 78 FR 35340 (June 12, 2013) (SR-NYSEARCA-2013-34).
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    The Exchange also believes that extending the pilot program for an 
additional 3 months will allow the Program to continue to enhance 
competition among market participants by creating incentives for market 
makers to compete to make better quality markets. By continuing to 
require that market makers both meet the quoting requirements and also 
compete for the daily financial incentives, the quality of quotes on 
the Exchange will continue to improve. This, in turn, will attract more 
liquidity to the Exchange and further improve the quality of trading in 
exchange-listed securities participating in the Program, which will 
also act to bolster the Exchange's listing business.

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

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

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

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to section 19(b)(3)(A) of the Act \17\ and Rule 19b-
4(f)(6) thereunder.\18\
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    \17\ 15 U.S.C. 78s(b)(3)(A).
    \18\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6) normally does 
not become operative before 30 days from the date of the filing. 
However, pursuant to Rule 19b-4(f)(6)(iii),\19\ the Commission may 
designate a shorter time if such action is consistent with the 
protection of investors and the public interest.
---------------------------------------------------------------------------

    \19\ 17 CFR 240.19b-4(f)(6)(iii).
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    The Exchange has asked the Commission to waive the 30-day operative 
delay. The Commission believes that waiving the 30-day operative delay 
is consistent with the protection of investors and the public interest. 
Waiver of the operative delay will allow the Exchange to extend the 
Program prior to its expiration on July 28, 2015, which will ensure 
that the Program continues to operate uninterrupted while the Exchange 
and the Commission continue to analyze data regarding the Program. 
Therefore, the Commission hereby waives the 30-day operative delay and 
designates the proposed rule change to be operative upon filing with 
the Commission.\20\
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    \20\ For purposes only of waiving the operative delay for this 
proposal, the Commission has considered the proposed rule's impact 
on efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

    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. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule should be approved or disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File No. SR-BATS-2015-55 on the subject line.

[[Page 45568]]

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 No. SR-BATS-2015-55. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549, on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of such filing will also be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File No. SR-BATS-2015-55 and should be 
submitted on or before August 20, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\21\
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    \21\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-18636 Filed 7-29-15; 8:45 am]
 BILLING CODE 8011-01-P



                                             45566                          Federal Register / Vol. 80, No. 146 / Thursday, July 30, 2015 / Notices

                                             the following required criteria for each                 SECURITIES AND EXCHANGE                                  Exchange has prepared summaries, set
                                             of the 7 positions:                                      COMMISSION                                               forth in sections A, B, and C below, of
                                             • Ability to complete Steering                           [Release No. 34–75518; File No. SR–BATS–
                                                                                                                                                               the most significant parts of such
                                               Committee responsibilities, listed                                                                              statements.
                                                                                                      2015–55
                                               above                                                                                                           A. Self-Regulatory Organization’s
                                             • Currently employed by/volunteering                     Self-Regulatory Organizations; BATS                      Statement of the Purpose of, and
                                               for stakeholder field (e.g.,                           Exchange, Inc.; Notice of Filing and                     Statutory Basis for, the Proposed Rule
                                               pharmaceutical, academia, patient                      Immediate Effectiveness of a Proposed                    Change
                                               advocate, etc.) with several years of                  Rule Change To Extend the Pilot
                                               relevant experience                                    Period of the BATS Exchange, Inc.                        1. Purpose
                                             • Leading expert in their relevant field                 Supplemental Competitive Liquidity                       Background
                                               (based on position, publications, or                   Provider Program                                            On August 30, 2011, the Exchange
                                               other experience)
                                                                                                                                                               received approval of rules applicable to
                                             • Working knowledge of at least one of                   July 24, 2015.
                                                                                                         Pursuant to section 19(b)(1) of the                   the qualification, listing and delisting of
                                               the following areas: Risk assessment;
                                                                                                      Securities Exchange Act of 1934 (the                     securities of issuers on the Exchange.5
                                               drug safety profiling; pharmacology or
                                                                                                      ‘‘Act’’),1 and Rule 19b–4 thereunder,2                   More recently, the Exchange received
                                               systems pharmacology; toxicology or
                                                                                                      notice is hereby given that on July 23,                  approval to operate a pilot program that
                                               systems toxicology; biostatistics;
                                                                                                      2015, BATS Exchange, Inc. (the                           is designed to incentivize certain Market
                                               cardiology; oncology; bioinformatics;
                                                                                                      ‘‘Exchange’’ or ‘‘BATS’’) filed with the                 Makers 6 registered with the Exchange
                                               ontology; multi-scale modeling;                                                                                 as ETP CLPs, as defined in
                                               knowledge management platforms;                        Securities and Exchange Commission
                                                                                                      (‘‘Commission’’) the proposed rule                       Interpretation and Policy .03 to Rule
                                               software development; or data sharing                                                                           11.8, to enhance liquidity on the
                                             • Prior experience serving on a related                  change as described in Items I and II
                                                                                                                                                               Exchange in certain ETPs 7 listed on the
                                               or similar governance body                             below, which Items have been prepared
                                                                                                                                                               Exchange and thereby qualify to receive
                                             • Understanding of the landscape and                     by the Exchange. The Exchange has
                                                                                                      designated this proposal as a ‘‘non-                     part of a daily rebate as part of the
                                               the impact on impact on the                                                                                     Program under Interpretation and Policy
                                               stakeholder group they are                             controversial’’ proposed rule change
                                                                                                      pursuant to section 19(b)(3)(A) of the                   .03 to Rule 11.8.8
                                               representing with their seat                                                                                       The Program was approved by the
                                                                                                      Act 3 and Rule 19b–4(f)(6)(iii)
                                             IV. Terms of Service                                                                                              Commission on a pilot basis running
                                                                                                      thereunder,4 which renders it effective
                                                                                                                                                               one-year from the date of
                                                • The PredicTox Steering Committee                    upon filing with the Commission. The
                                                                                                                                                               implementation.9 The Commission
                                             meets in-person at least twice per year,                 Commission is publishing this notice to
                                                                                                                                                               approved the Program on July 28,
                                             with teleconferences in between                          solicit comments on the proposed rule
                                                                                                                                                               2014.10 The Exchange implemented the
                                             meetings as deemed necessary by the                      change from interested persons.
                                                                                                                                                               Program on July 28, 2014 and the pilot
                                             Chair.
                                                                                                      I. Self-Regulatory Organization’s                        period for the Program is scheduled to
                                                • Members will serve two or three
                                                                                                      Statement of the Terms of Substance of                   end on July 28, 2015.
                                             year, staggered terms, as determined by
                                                                                                      the Proposed Rule Change                                 Proposal To Extend the Operation of the
                                             the RUF Board.
                                                • Members do not receive                                 The Exchange is proposing to extend                   Program
                                             compensation from RUF.                                   the pilot period for the Exchange’s                         The Exchange established the
                                                • Members can be reimbursed by RUF                    Supplemental Competitive Liquidity                       Program in order to enhance liquidity
                                             for actual and reasonable expenses                       Provider Program (the ‘‘Program’’),                      on the Exchange in certain ETPs listed
                                             incurred in support of PredicTox in                      which is currently set to expire on July                 on the Exchange (and thereby enhance
                                             accordance with applicable law and                       28, 2015, for 3 months, to expire on                     the Exchange’s ability to compete as a
                                             their specific institutional policies.                   October 28, 2015.                                        listing venue) by providing a
                                                • Members are subject to the                             The text of the proposed rule change
                                                                                                                                                               mechanism by which ETP CLPs
                                             PredicTox Conflict of Interest policies                  is available at the Exchange’s Web site
                                                                                                                                                               compete for part of a daily quoting
                                             (additional information can be accessed                  at www.batstrading.com, at the
                                                                                                                                                               incentive on the basis of providing the
                                             on the Reagan-Udall Foundation Web                       principal office of the Exchange, and at
                                                                                                                                                               most aggressive quotes with the greatest
                                             site at: http://goo.gl/00HtQL).                          the Commission’s Public Reference
                                                                                                                                                               amount of size. Such competition has
                                                                                                      Room.
                                             V. Nomination Instructions                                                                                        the ability to reduce spreads, facilitate
                                                                                                      II. Self-Regulatory Organization’s                       the price discovery process, and reduce
                                               • The nomination form can be
                                                                                                      Statement of the Purpose of, and                         costs for investors trading in such
                                             accessed on the Reagan-Udall
                                                                                                      Statutory Basis for, the Proposed Rule                   securities, thereby promoting capital
                                             Foundation Web site: http://goo.gl/
                                                                                                      Change                                                   formation and helping the Exchange to
                                             00HtQL.
                                                                                                                                                               compete as a listing venue. The
                                               • Individuals may be nominated for 1                     In its filing with the Commission, the
                                             or more of the 5 stakeholder categories.                 Exchange included statements                                5 See Securities Exchange Act Release No. 65225
                                               • Individuals may nominate                             concerning the purpose of and basis for                  (August 30, 2011), 76 FR 55148 (September 6, 2011)
                                             themselves or others.                                    the proposed rule change and discussed                   (SR–BATS–2011–018).
                                               • The nomination deadline is August                    any comments it received on the                             6 As defined in BATS Rules, the term ‘‘Market

                                             28, 2015.                                                proposed rule change. The text of these                  Maker’’ means a Member that acts a as a market
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                                                                                                                                                               maker pursuant to chapter XI of BATS Rules.
                                              Dated: July 24, 2015.                                   statements may be examined at the                           7 ETP is defined in Interpretation and Policy
                                                                                                      places specified in Item IV below. The                   .03(b)(4) to Rule 11.8.
                                             Nancy Beck,
                                                                                                                                                                  8 See Securities Exchange Act Release No. 72692
                                             Manager, Program Development, Reagan-                         1 15 U.S.C. 78s(b)(1).                              (July 28, 2014), 79 FR 44908 (August 1, 2014) (SR–
                                             Udall Foundation for the FDA.                                 2 17 CFR 240.19b–4.                                 BATS–2014–022) (‘‘CLP Approval Order’’).
                                             [FR Doc. 2015–18637 Filed 7–29–15; 8:45 am]                   3 15 U.S.C. 78s(b)(3)(A).                              9 See id at 44909.

                                             BILLING CODE 4164–04–P                                        4 17 CFR 240.19b–4(f)(6)(iii).                         10 Id.




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                                                                            Federal Register / Vol. 80, No. 146 / Thursday, July 30, 2015 / Notices                                                    45567

                                             Exchange believes that extending the                     any burden on competition that is not                 19(b)(3)(A) of the Act 17 and Rule 19b-
                                             pilot is appropriate because it will allow               necessary or appropriate in furtherance               4(f)(6) thereunder.18
                                             the Exchange and the Commission                          of the purposes of the Act. The                          A proposed rule change filed under
                                             additional time to analyze data                          proposed rule change extends an                       Rule 19b-4(f)(6) normally does not
                                             regarding the Program that the Exchange                  established pilot program for 3 months,               become operative before 30 days from
                                             has committed to provide.11 As such,                     thus allowing the Program to enhance                  the date of the filing. However, pursuant
                                             the Exchange believes that it is                         competition in both the listings market               to Rule 19b-4(f)(6)(iii),19 the
                                             appropriate to extend the current                        and in competition for market makers.                 Commission may designate a shorter
                                             operation of the Program. Further                        The Program will continue to promote                  time if such action is consistent with the
                                             information related to the Program                       competition in the listings market by                 protection of investors and the public
                                             including data can be found on the                       providing issuers with a vehicle for                  interest.
                                             Exchange’s Web site.12 Through this                      paying the Exchange additional fees in
                                             filing, the Exchange seeks to extend the                                                                          The Exchange has asked the
                                                                                                      exchange for incentivizing tighter                    Commission to waive the 30-day
                                             current pilot period of the Program until                spreads and deeper liquidity in listed
                                             October 28, 2015.                                                                                              operative delay. The Commission
                                                                                                      securities and allow the Exchange to                  believes that waiving the 30-day
                                             2. Statutory Basis                                       continue to compete with similar                      operative delay is consistent with the
                                                The Exchange believes that its                        programs at Nasdaq Stock Market LLC 15                protection of investors and the public
                                             proposal is consistent with the                          and NYSE Arca Equities, Inc. 16                       interest. Waiver of the operative delay
                                             requirements of the Act and the rules                       The Exchange also believes that                    will allow the Exchange to extend the
                                             and regulations thereunder that are                      extending the pilot program for an                    Program prior to its expiration on July
                                             applicable to a national securities                      additional 3 months will allow the                    28, 2015, which will ensure that the
                                             exchange, and, in particular, with the                   Program to continue to enhance                        Program continues to operate
                                             requirements of section 6(b) of the                      competition among market participants                 uninterrupted while the Exchange and
                                             Act.13 In particular, the Exchange                       by creating incentives for market makers              the Commission continue to analyze
                                             believes the proposed change furthers                    to compete to make better quality                     data regarding the Program. Therefore,
                                             the objectives of section 6(b)(5) of the                 markets. By continuing to require that                the Commission hereby waives the 30-
                                             Act,14 in that it is designed to prevent                 market makers both meet the quoting                   day operative delay and designates the
                                             fraudulent and manipulative acts and                     requirements and also compete for the                 proposed rule change to be operative
                                             practices, to promote just and equitable                 daily financial incentives, the quality of            upon filing with the Commission.20
                                             principles of trade, to foster cooperation               quotes on the Exchange will continue to                  At any time within 60 days of the
                                             and coordination with persons engaged                    improve. This, in turn, will attract more             filing of the proposed rule change, the
                                             in facilitating transactions in securities,              liquidity to the Exchange and further                 Commission summarily may
                                             and to remove impediments to and                                                                               temporarily suspend such rule change if
                                                                                                      improve the quality of trading in
                                             perfect the mechanism of a free and                                                                            it appears to the Commission that such
                                                                                                      exchange-listed securities participating
                                             open market and a national market                                                                              action is necessary or appropriate in the
                                                                                                      in the Program, which will also act to
                                             system. The Exchange believes that                                                                             public interest, for the protection of
                                             extending the pilot period for the                       bolster the Exchange’s listing business.
                                                                                                                                                            investors, or otherwise in furtherance of
                                             Program is consistent with these                         C. Self-Regulatory Organization’s                     the purposes of the Act. If the
                                             principles because the Program is                        Statement on Comments on the                          Commission takes such action, the
                                             reasonably designed to enhance quote                     Proposed Rule Change Received From                    Commission shall institute proceedings
                                             competition, improve liquidity in                        Members, Participants or Others                       to determine whether the proposed rule
                                             securities listed on the Exchange,                                                                             should be approved or disapproved.
                                             support the quality of price discovery,                    The Exchange has not solicited, and
                                             promote market transparency, and                         does not intend to solicit, comments on               IV. Solicitation of Comments
                                             increase competition for listings and                    this proposed rule change. The                          Interested persons are invited to
                                             trade executions, while reducing                         Exchange has not received any written                 submit written data, views and
                                             spreads and transaction costs in such                    comments from Members or other                        arguments concerning the foregoing,
                                             securities. Maintaining and increasing                   interested parties.                                   including whether the proposal is
                                             liquidity in Exchange-listed securities
                                                                                                      III. Date of Effectiveness of the                     consistent with the Act. Comments may
                                             will help raise investors’ confidence in
                                                                                                      Proposed Rule Change and Timing for                   be submitted by any of the following
                                             the fairness of the market and their
                                                                                                      Commission Action                                     methods:
                                             transactions. The extension of the pilot
                                             period will allow the Commission and                                                                           Electronic Comments
                                                                                                        Because the foregoing proposed rule
                                             the Exchange to continue to monitor the
                                             Program for its potential effects on                     change does not: (i) Significantly affect               • Use the Commission’s Internet
                                             public price discovery, and on the                       the protection of investors or the public             comment form (http://www.sec.gov/
                                             broader market structure.                                interest; (ii) impose any significant                 rules/sro.shtml); or
                                                                                                      burden on competition; and (iii) become                 • Send an email to rule-comments@
                                             B. Self-Regulatory Organization’s                        operative for 30 days from the date on                sec.gov. Please include File No. SR–
                                             Statement on Burden on Competition                       which it was filed, or such shorter time              BATS–2015–55 on the subject line.
                                               The Exchange does not believe that                     as the Commission may designate, it has
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                                             the proposed rule change will impose                     become effective pursuant to section                    17 15  U.S.C. 78s(b)(3)(A).
                                                                                                                                                              18 17  CFR 240.19b–4(f)(6).
                                               11 See CLP Approval Order, supra note 8 at               15 See Securities Exchange Act Release No. 69195       19 17 CFR 240.19b-4(f)(6)(iii).
                                             44913.                                                   (March 20, 2013), 78 FR 18393 (March 26, 2013)           20 For purposes only of waiving the operative
                                               12 See http://www.bats.com/us/equities/listings/
                                                                                                      (SR–NASDAQ–2012–137).                                 delay for this proposal, the Commission has
                                             clp_reports/.                                              16 See Securities Exchange Act Release No. 69335    considered the proposed rule’s impact on
                                               13 15 U.S.C. 78f(b).
                                                                                                      (April 5, 2013), 78 FR 35340 (June 12, 2013) (SR–     efficiency, competition, and capital formation. See
                                               14 15 U.S.C. 78f(b)(5).                                NYSEARCA–2013–34).                                    15 U.S.C. 78c(f).



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                                             45568                            Federal Register / Vol. 80, No. 146 / Thursday, July 30, 2015 / Notices

                                             Paper Comments                                             SECURITIES AND EXCHANGE                                    assists Nasdaq Participants in
                                                                                                        COMMISSION                                                 monitoring the Orders they have entered
                                               • Send paper comments in triplicate                                                                                 for execution in the Nasdaq Halt Cross
                                             to Secretary, Securities and Exchange                      [Release No. 34–75517; File No. SR–
                                                                                                        NASDAQ–2015–082]
                                                                                                                                                                   for an IPO. The Nasdaq Halt Cross is an
                                             Commission, 100 F Street NE.,                                                                                         auction process designed to provide an
                                             Washington, DC 20549–1090.                                 Self-Regulatory Organizations; The                         orderly, single-priced opening of
                                             All submissions should refer to File No.                   NASDAQ Stock Market LLC; Notice of                         securities subject to an intraday halt,
                                                                                                        Filing of Proposed Rule Change To                          including securities that are the subject
                                             SR–BATS–2015–55. This file number
                                                                                                        Introduce an Additional Data Element                       of an IPO. Prior to the execution of the
                                             should be included on the subject line
                                                                                                        to the IPO Indicator Service                               Nasdaq Halt Cross for an IPO (the ‘‘IPO
                                             if email is used. To help the                                                                                         Cross’’), Participants enter Orders
                                             Commission process and review your                         July 24, 2015.                                             eligible for participation in the IPO
                                             comments more efficiently, please use                         Pursuant to section 19(b)(1) of the                     Cross, and Nasdaq disseminates certain
                                             only one method. The Commission will                       Securities Exchange Act of 1934                            information regarding buying and
                                             post all comments on the Commission’s                      (‘‘Act’’),1 and Rule 19b–4 thereunder,2                    selling interest entered and indicative
                                             Internet Web site (http://www.sec.gov/                     notice is hereby given that on July 15,                    execution price information, with such
                                             rules/sro.shtml). Copies of the                            2015, The NASDAQ Stock Market LLC                          information known collectively as the
                                             submission, all subsequent                                 (‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the                Net Order Imbalance Indicator or
                                             amendments, all written statements                         Securities and Exchange Commission                         ‘‘NOII’’. The NOII is disseminated every
                                             with respect to the proposed rule                          (‘‘SEC’’ or ‘‘Commission’’) the proposed                   five seconds during a period prior to the
                                             change that are filed with the                             rule change as described in Items I, II,                   completion of the IPO Cross, in order to
                                             Commission, and all written                                and III, below, which Items have been                      provide Participants with information
                                             communications relating to the                             prepared by the Exchange. The                              regarding the possible price and volume
                                             proposed rule change between the                           Commission is publishing this notice to                    of the IPO Cross execution. The NOII
                                             Commission and any person, other than                      solicit comments on the proposed rule                      information includes, among other
                                                                                                        change from interested persons.                            things, the Current Reference Price,3
                                             those that may be withheld from the
                                             public in accordance with the                              I. Self-Regulatory Organization’s                          which is the price at which the IPO
                                             provisions of 5 U.S.C. 552, will be                        Statement of the Terms of the Substance                    Cross would occur if it executed at the
                                                                                                        of the Proposed Rule Change                                time of the NOII’s dissemination. The
                                             available for Web site viewing and
                                                                                                                                                                   IPO Indicator Service in turn provides a
                                             printing in the Commission’s Public                           The Exchange proposes to introduce                      Participant with information about the
                                             Reference Room, 100 F Street NE.,                          an additional data element to its IPO                      number of shares of its Orders that
                                             Washington, DC 20549, on official                          Indicator Service. The text of the                         would execute in the IPO Cross at the
                                             business days between the hours of                         proposed rule change is available on the                   Current Reference Price.4 The IPO Cross
                                             10:00 a.m. and 3:00 p.m. Copies of such                    Exchange’s Web site at http://                             executes and regular market trading
                                             filing will also be available for                          nasdaq.cchwallstreet.com, at the                           commences in the IPO security when
                                             inspection and copying at the principal                    principal office of the Exchange, and at                   the designated representative of the
                                             office of the Exchange. All comments                       the Commission’s Public Reference                          underwriting syndicate for the IPO
                                             received will be posted without change;                    Room.                                                      informs Nasdaq that the IPO security is
                                             the Commission does not edit personal                      II. Self-Regulatory Organization’s                         ready to commence trading and the
                                             identifying information from                               Statement of the Purpose of, and                           parameters of the IPO Cross pass
                                             submissions. You should submit only                        Statutory Basis for, the Proposed Rule                     validation checks pertaining to the price
                                             information that you wish to make                          Change                                                     of the execution and the execution of all
                                             available publicly. All submissions                                                                                   entered market Orders.5 The
                                                                                                           In its filing with the Commission, the
                                             should refer to File No. SR–BATS–                                                                                     representative of the underwriting
                                                                                                        Exchange included statements
                                             2015–55 and should be submitted on or                                                                                 syndicate that serves this function—
                                                                                                        concerning the purpose of and basis for
                                             before August 20, 2015.                                                                                               usually the lead underwriter—also
                                                                                                        the proposed rule change and discussed
                                                                                                                                                                   serves as the stabilizing agent for the
                                               For the Commission, by the Division of                   any comments it received on the
                                                                                                                                                                   IPO.
                                             Trading and Markets, pursuant to delegated                 proposed rule change. The text of these                       Following the execution of the IPO
                                             authority.21                                               statements may be examined at the                          Cross, the stabilizing agent engages in
                                             Robert W. Errett,                                          places specified in Item IV below. The                     permissible ‘‘stabilizing’’, as defined in
                                                                                                        Exchange has prepared summaries, set                       Rule 100 under SEC Regulation M,6 for
                                             Deputy Secretary.
                                                                                                        forth in sections A, B, and C below, of                    the IPO. As provided by Rule 104 under
                                             [FR Doc. 2015–18636 Filed 7–29–15; 8:45 am]
                                                                                                        the most significant aspects of such                       Regulation M,7 stabilizing of an offering
                                             BILLING CODE 8011–01–P                                     statements.                                                is permitted only to the extent that the
                                                                                                        A. Self-Regulatory Organization’s                          person engaging in the activity complies
                                                                                                        Statement of the Purpose of, and                           with limitations described in that rule.
                                                                                                        Statutory Basis for, the Proposed Rule                     These limitations include a requirement
                                                                                                        Change                                                     that stabilizing must be solely for the
                                                                                                                                                                   purpose of preventing or retarding a
                                                                                                        1. Purpose
Lhorne on DSK7TPTVN1PROD with NOTICES




                                                                                                           Nasdaq is proposing to introduce an                       3 See  Rule 4753(a)(3)(A).
                                                                                                                                                                     4 The  IPO Indicator Service is available either as
                                                                                                        additional data element—to be known
                                                                                                                                                                   a feature of the Nasdaq Workstation poduct, or
                                                                                                        as the ‘‘IPO Book Viewer’’—to its IPO                      through a standalone product known as the Nasdaq
                                                                                                        Indicator Service, which currently                         IPO Workstation. See Rule 7015.
                                                                                                                                                                      5 See Rule 4120(c)(8).
                                                                                                             1 15   U.S.C. 78s(b)(1).                                 6 17 CFR 242.100.
                                               21 17   CFR 200.30–3(a)(12).                                  2 17   CFR 240.19b–4.                                    7 17 CFR 242.104.




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Document Created: 2018-02-23 09:30:27
Document Modified: 2018-02-23 09:30:27
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 45566 

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