80_FR_46518 80 FR 46369 - Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 11.13, Order Execution and Routing

80 FR 46369 - Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 11.13, Order Execution and Routing

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 149 (August 4, 2015)

Page Range46369-46371
FR Document2015-19017

Federal Register, Volume 80 Issue 149 (Tuesday, August 4, 2015)
[Federal Register Volume 80, Number 149 (Tuesday, August 4, 2015)]
[Notices]
[Pages 46369-46371]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-19017]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75547; File No. SR-BYX-2015-33]


Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 
11.13, Order Execution and Routing

July 29, 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 21, 2015, BATS Y-Exchange, Inc. (the ``Exchange'' or 
``BYX'') 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 filed a proposal to amend Rule 11.13, Order Execution 
and Routing, to: (i) Delete references to the ROOC routing option; and 
(ii) update routing options IOCM and ICMT to reflect a recent proposed 
rule change by EDGX Exchange, Inc. (``EDGX'') in which EDGX replaced 
the MidPoint Match Order with the MidPoint Peg Order.\5\
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    \5\ See Securities Exchange Act Release No. 75479 (July 17, 
2015) (SR-EDGX-2015-33).
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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

[[Page 46370]]

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 Rule 11.13, Order Execution and 
Routing, to: (i) Delete references to the ROOC routing option; and (ii) 
update routing options IOCM and ICMT to reflect a recent proposed rule 
change by EDGX in which EDGX replaced the MidPoint Match Order with the 
MidPoint Peg Order.\6\
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    \6\ See supra note 5.
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ROOC Routing Option
    Under Rule 11.13(b)(3)(N), an order utilizing the ROOC routing 
option is designated by the User \7\ to participate in the opening, re-
opening (following a halt, suspension, or pause), or closing process of 
a primary listing market (BATS BZX, NYSE, Nasdaq, NYSE MKT, or NYSE 
Arca) if received before the opening/re-opening/closing time of such 
market. If shares remain unexecuted after attempting to execute in the 
opening, re-opening, or closing process, they are either posted to the 
BATS Book,\8\ executed, or routed to destinations on the System \9\ 
routing table.\10\
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    \7\ The term ``User'' is defined as ``any Member or Sponsored 
Participant who is authorized to obtain access to the System 
pursuant to Rule 11.3.'' See Exchange Rule 1.5(cc).
    \8\ The term ``BATS Book is defined as ``the System's electronic 
file of orders.'' Rule 1.5(e).
    \9\ 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.'' Rule 1.5(aa).
    \10\ The term ``System routing table'' refers to the proprietary 
process for determining the specific trading venues to which the 
System routes orders and the order in which it routes them. Rule 
11.13(b)(3). The ROOC routing option does not route to the reopening 
process for BATS BZX. Rule 11.13(b)(3)(N).
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    Because few Users elect the ROOC routing option, the Exchange has 
determined that the current demand does not warrant the infrastructure 
and ongoing maintenance expenses required to support the product. 
Therefore, the Exchange proposes to delete the ROOC routing option 
under 11.13(b)(3)(N). Users seeking to route orders to participate in 
the opening, re-opening, or closing process of a primary listing market 
may use alternative methods, such as connecting to those markets 
directly or through a third party service provider, or electing another 
routing option offered by the Exchange that enables a User to post an 
order to certain primary listing markets.\11\
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    \11\ See e.g., Rule 11.13(b)(3)(J) (describing the INET routing 
option under which an order checks the System for available shares 
and then is sent to Nasdaq. If shares remain unexecuted after 
routing, they are posted on the Nasdaq book, unless otherwise 
instructed by the User), Rule 11.13(b)(3)(K) (describing the RDOT 
routing option under which an order checks the System for available 
shares and then is sent to destinations on the System routing table. 
If shares remain unexecuted after routing, they are sent to the NYSE 
and can be re-routed by the NYSE. Any remainder will be posted to 
the NYSE, unless otherwise instructed by the User), and 
11.13(b)(3)(L) (describing the RDOX routing option under which an 
order checks the System for available shares, is then sent to the 
NYSE and can be re-routed by the NYSE. If shares remain unexecuted 
after routing, they are posted on the NYSE book, unless otherwise 
instructed by the User).
---------------------------------------------------------------------------

IOCM and ICMT Routing Options
    The Exchange also proposes to amend Rules 11.13(b)(3)(O) and (P) to 
update routing options IOCM and ICMT to reflect a recent rule change by 
EDGX in which EDGX replaced the MidPoint Match Order with the MidPoint 
Peg Order.\12\ Rule 11.13(b)(3)(O) describes IOCM as a routing option 
under which an order checks the System for available shares and then is 
sent, as a MidPoint Match Order with a Time-in-Force of IOC \13\ to 
EDGX. Similarly, Rule 11.13(b)(3)(P) describes ICMT as a routing option 
under which an order checks the System for available shares, then is 
sent to destinations on the System routing table and then is sent, as a 
MidPoint Match Order with a Time-in-Force of IOC to EDGX. Under ICMT, 
if shares remain unexecuted after routing, they are posted to the BATS 
Book, unless otherwise instructed by the User.
---------------------------------------------------------------------------

    \12\ See supra note 5.
    \13\ See Rule 11.9(q)(1).b [sic]
---------------------------------------------------------------------------

    On July 8, 2015, EDGX filed a proposed rule change with the 
Commission for immediate effectiveness to, among other things, replace 
the MidPoint Match Order with the MidPoint Peg Order.\14\ Therefore, 
the Exchange proposes to update the description of the IOCM and ICMT 
routing options to replace references to the MidPoint Match Order with 
the MidPoint Peg Order.
---------------------------------------------------------------------------

    \14\ See supra note 5.
---------------------------------------------------------------------------

Implementation Date
    The Exchange intends to implement the proposed changes to the 
descriptions of the IOCM and ICMT routing option immediately.\15\ The 
Exchange will alert Users via a Trading Notice of the date upon which 
it will discontinue the ROOC routing option.
---------------------------------------------------------------------------

    \15\ Implementation of the proposed rule change immediately upon 
filing is contingent upon the Commission granting a waiver of the 
30-day operative delay. 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \16\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \17\ in particular, in that it is designed to 
promote just and equitable principles of trade, to foster cooperation 
and coordination with persons engaged in facilitating transactions in 
securities, to remove impediments to and perfect the mechanism of a 
free and open market and a national market system and, in general, to 
protect investors and the public interest.
---------------------------------------------------------------------------

    \16\ 15 U.S.C. 78f(b).
    \17\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange does not believe that this proposal will permit unfair 
discrimination among customers, brokers, or dealers because the ROOC 
routing option will no longer be available and the updates to the IOCM 
and ICMT routing options would apply to all Users equally. The Exchange 
has few Users electing the ROOC routing option and has determined that 
the current demand does not warrant the infrastructure and ongoing 
maintenance expense required to support the product. Routing through 
the Exchange is voluntary and alternative routing options offered by 
the Exchange as well as other methods remain available to Users that 
wish to route orders to participate in the opening, re-opening, or 
closing process of the primary listing market.\18\ In addition, the 
ROOC routing option is not a core product offering by the Exchange, nor 
is the Exchange required by the Act to offer such a product. The 
proposed updates to routing options IOCM and ICMT are in response to a 
recent rule change by EDGX in which EDGX replaced the MidPoint Match 
Order with the MidPoint Peg Order.\19\ The proposal is intended to 
accurately describe how orders utilizing the IOCM or ICMT routing 
options are to be handled by the Exchange in light of the EDGX proposed 
rule change mentioned above. Therefore, the Exchange believes the 
proposed rule change would make its rules clearer and less confusing 
for investors; thereby removing impediments to and perfecting the 
mechanism of a free and open market and a national market system, and, 
in

[[Page 46371]]

general, protecting investors and the public interest.
---------------------------------------------------------------------------

    \18\ See supra note 11 and accompanying text.
    \19\ See supra note 5.
---------------------------------------------------------------------------

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

    The Exchange does not believe that the proposal will impose any 
burden on competition not necessary or appropriate in furtherance of 
the purposes of the Act. The proposed rule change is not designed to 
address any competitive issues but rather avoid investor confusion by 
eliminating the ROOC routing option that is to be discontinued by the 
Exchange as well as update the IOCM and ICMT routing options in 
response to a recent proposed rule change by EDGX.\20\
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    \20\ Id.
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(C) Self-Regulatory Organization's Statement on Comments on the 
Proposed Rule Change Received From Members, Participants or Others

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

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

    Because the 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, the proposed rule change has become effective 
pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-4(f)(6) 
thereunder.\21\
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    \21\ In addition, Rule 19b-4(f)(6)(iii) requires the Exchange to 
give the Commission written notice of the Exchange's intent to file 
the proposed rule change, along with a brief description and text of 
the proposed rule change, at least five business days prior to the 
date of filing of the proposed rule change, or such shorter time as 
designated by the Commission. The Exchange has satisfied this 
requirement.
---------------------------------------------------------------------------

    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act normally does not become operative for 30 days after the date of 
its filing. However, Rule 19b-4(f)(6)(iii) permits the Commission to 
designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange has asked 
the Commission to waive the 30-day operative delay so that the proposal 
may become operative immediately upon filing. Waiver of the 30-day 
operative delay would allow the Exchange to modify its rules in a 
timely manner by: (i) Eliminating a rule that accounts for a service 
the Exchange intends to discontinue; and (ii) updating its rules to 
accurately describe how orders utilizing those routing options function 
in light of the recent proposed rule change by EDGX, thereby avoiding 
potential investor confusion during the operative delay period. Based 
on the foregoing, the Commission believes the waiver of the operative 
delay is consistent with the protection of investors and the public 
interest.\22\ The Commission hereby grants the waiver and designates 
the proposal operative upon filing.
---------------------------------------------------------------------------

    \22\ For purposes only of waiving the 30-day operative delay, 
the Commission has also 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 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-BYX-2015-33 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-BYX-2015-33. 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 the filing will also be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-BYX-2015-33 and should be 
submitted on or before August 25, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\23\
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    \23\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-19017 Filed 8-3-15; 8:45 am]
BILLING CODE 8011-01-P



                                                                            Federal Register / Vol. 80, No. 149 / Tuesday, August 4, 2015 / Notices                                                   46369

                                              registration in such form as the                        estimated cost burden to $449 to                      SECURITIES AND EXCHANGE
                                              Commission prescribes. Form N–8A (17                    account for the effects of inflation.                 COMMISSION
                                              CFR 274.10) is the form for notification                Therefore, we estimate that the total
                                              of registration that the Commission has                                                                       [Release No. 34–75547; File No. SR–BYX–
                                                                                                      annual cost burden to associated with
                                              adopted under section 8(a). The purpose                                                                       2015–33]
                                                                                                      preparing and filing notifications of
                                              of such notification of registration                    registration on Form N–8A is about                    Self-Regulatory Organizations; BATS
                                              provided on Form N–8A is to notify the                  $41,308.                                              Y-Exchange, Inc.; Notice of Filing and
                                              Commission of the existence of                                                                                Immediate Effectiveness of a Proposed
                                              investment companies required to be                        Estimates of average burden hours
                                                                                                      and costs are made solely for the                     Rule Change to Rule 11.13, Order
                                              registered under the Investment                                                                               Execution and Routing
                                              Company Act and to enable the                           purposes of the Paperwork Reduction
                                              Commission to administer the                            Act, and are not derived from a                       July 29, 2015.
                                              provisions of the Investment Company                    comprehensive or even representative                     Pursuant to Section 19(b)(1) of the
                                              Act with respect to those companies.                    survey or study of the costs of                       Securities Exchange Act of 1934 (the
                                              After an investment company has filed                   Commission rules and forms.                           ‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                              its notification of registration under                  Compliance with the collection of                     notice is hereby given that on July 21,
                                              section 8(a), the company is then subject               information requirements of Form N–8A                 2015, BATS Y-Exchange, Inc. (the
                                              to the provisions of the Investment                     is mandatory. Responses to the                        ‘‘Exchange’’ or ‘‘BYX’’) filed with the
                                              Company Act which govern certain                        collection of information will not be                 Securities and Exchange Commission
                                              aspects of its organization and activities,             kept confidential. An agency may not                  (‘‘Commission’’) the proposed rule
                                              such as the composition of its board of                 conduct or sponsor, and a person is not               change as described in Items I and II
                                              directors and the issuance of senior                    required to respond to, a collection of               below, which Items have been prepared
                                              securities. Form N–8A requires an                       information unless it displays a                      by the Exchange. The Exchange has
                                              investment company to provide its                       currently valid OMB control number.                   designated this proposal as a ‘‘non-
                                              name, state of organization, form of                                                                          controversial’’ proposed rule change
                                                                                                         Written comments are invited on: (a)
                                              organization, classification, the name                                                                        pursuant to Section 19(b)(3)(A) of the
                                                                                                      Whether the collection of information is
                                              and address of each investment adviser                                                                        Act3 and Rule 19b–4(f)(6)(iii)
                                              of the investment company, the current                  necessary for the proper performance of
                                                                                                                                                            thereunder,4 which renders it effective
                                              value of its total assets, and certain                  the functions of the Commission,
                                                                                                                                                            upon filing with the Commission. The
                                              other information readily available to                  including whether the information has
                                                                                                                                                            Commission is publishing this notice to
                                              the investment company. If the                          practical utility; (b) the accuracy of the            solicit comments on the proposed rule
                                              investment company is filing a                          Commission’s estimate of the burden of                change from interested persons.
                                              registration statement as required by                   the collection of information; (c) ways to
                                              Section 8(b) of the Investment Company                  enhance the quality, utility, and clarity             I. Self-Regulatory Organization’s
                                              Act concurrently with its notification of               of the information collected; and (d)                 Statement of the Terms of Substance of
                                              registration, Form N–8A requires only                   ways to minimize the burden of the                    the Proposed Rule Change
                                              that the registrant file the cover page                 collection of information on                             The Exchange filed a proposal to
                                              (giving its name, address, and agent for                respondents, including through the use                amend Rule 11.13, Order Execution and
                                              service of process) and sign the form in                of automated collection techniques or                 Routing, to: (i) Delete references to the
                                              order to effect registration.                           other forms of information technology.                ROOC routing option; and (ii) update
                                                 Based on recent filings of notifications             Consideration will be given to                        routing options IOCM and ICMT to
                                              of registration on Form N–8A, we                        comments and suggestions submitted in                 reflect a recent proposed rule change by
                                              estimate that about 92 investment                       writing within 60 days of this                        EDGX Exchange, Inc. (‘‘EDGX’’) in
                                              companies file such notifications each                  publication.                                          which EDGX replaced the MidPoint
                                              year. An investment company must only                                                                         Match Order with the MidPoint Peg
                                                                                                         Please direct your written comments
                                              file a notification of registration on                                                                        Order.5
                                                                                                      to Pamela Dyson, Director/Chief                          The text of the proposed rule change
                                              Form N–8A once. The currently                           Information Officer, Securities and
                                              approved average hour burden per                                                                              is available at the Exchange’s Web site
                                                                                                      Exchange Commission, C/O Remi                         at www.batstrading.com, at the
                                              investment company of preparing and
                                                                                                      Pavlik-Simon, 100 F Street NE.,                       principal office of the Exchange, and at
                                              filing a notification of registration on
                                                                                                      Washington, DC 20549; or send an email                the Commission’s Public Reference
                                              Form N–8A is one hour. Based on the
                                              Commission staff’s experience with the                  to: PRA_Mailbox@sec.gov.                              Room.
                                              requirements of Form N–8A and with                        Dated: July 28, 2015.                               II. Self-Regulatory Organization’s
                                              disclosure documents generally—and                      Robert W. Errett,                                     Statement of the Purpose of, and
                                              considering that investment companies                   Deputy Secretary.                                     Statutory Basis for, the Proposed Rule
                                              that are filing notifications of                        [FR Doc. 2015–18887 Filed 8–3–15; 8:45 am]            Change
                                              registration on Form N–8A
                                              simultaneously with the registration                    BILLING CODE 8011–01–P                                  In its filing with the Commission, the
                                              statement under the Investment                                                                                Exchange included statements
                                              Company Act are only required by Form                                                                         concerning the purpose of and basis for
                                              N–8A to file a signed cover page—we                                                                           the proposed rule change and discussed
                                                                                                                                                            any comments it received on the
tkelley on DSK3SPTVN1PROD with NOTICES




                                              continue to believe that this estimate is
                                              appropriate. Therefore, we estimate that                                                                        1 15  U.S.C. 78s(b)(1).
                                              the total annual hour burden to prepare                                                                         2 17  CFR 240.19b–4.
                                              and file notifications of registration on                                                                        3 15 U.S.C. 78s(b)(3)(A).
                                              Form N–8A is 92 hours. The currently                                                                             4 17 CFR 240.19b–4(f)(6)(iii).
                                              approved cost burden of Form N–8A is                                                                             5 See Securities Exchange Act Release No. 75479

                                              $443 per filing. We are updating the                                                                          (July 17, 2015) (SR–EDGX–2015–33).



                                         VerDate Sep<11>2014   18:45 Aug 03, 2015   Jkt 235001   PO 00000   Frm 00136   Fmt 4703   Sfmt 4703   E:\FR\FM\04AUN1.SGM   04AUN1


                                              46370                           Federal Register / Vol. 80, No. 149 / Tuesday, August 4, 2015 / Notices

                                              proposed rule change. The text of these                   such as connecting to those markets                    Exchange will alert Users via a Trading
                                              statements may be examined at the                         directly or through a third party service              Notice of the date upon which it will
                                              places specified in Item IV below. The                    provider, or electing another routing                  discontinue the ROOC routing option.
                                              Exchange has prepared summaries, set                      option offered by the Exchange that
                                              forth in Sections A, B, and C below, of                   enables a User to post an order to                     2. Statutory Basis
                                              the most significant parts of such                        certain primary listing markets.11                        The Exchange believes that its
                                              statements.                                                                                                      proposal is consistent with Section 6(b)
                                                                                                        IOCM and ICMT Routing Options
                                              (A) Self-Regulatory Organization’s                           The Exchange also proposes to amend                 of the Act 16 in general, and furthers the
                                              Statement of the Purpose of, and                          Rules 11.13(b)(3)(O) and (P) to update                 objectives of Section 6(b)(5) of the Act 17
                                              Statutory Basis for, the Proposed Rule                    routing options IOCM and ICMT to                       in particular, in that it is designed to
                                              Change                                                    reflect a recent rule change by EDGX in                promote just and equitable principles of
                                                                                                        which EDGX replaced the MidPoint                       trade, to foster cooperation and
                                              1. Purpose
                                                                                                        Match Order with the MidPoint Peg                      coordination with persons engaged in
                                                 The Exchange proposes to amend                                                                                facilitating transactions in securities, to
                                                                                                        Order.12 Rule 11.13(b)(3)(O) describes
                                              Rule 11.13, Order Execution and                                                                                  remove impediments to and perfect the
                                                                                                        IOCM as a routing option under which
                                              Routing, to: (i) Delete references to the                                                                        mechanism of a free and open market
                                                                                                        an order checks the System for available
                                              ROOC routing option; and (ii) update                                                                             and a national market system and, in
                                                                                                        shares and then is sent, as a MidPoint
                                              routing options IOCM and ICMT to                                                                                 general, to protect investors and the
                                                                                                        Match Order with a Time-in-Force of
                                              reflect a recent proposed rule change by                                                                         public interest.
                                                                                                        IOC 13 to EDGX. Similarly, Rule
                                              EDGX in which EDGX replaced the
                                                                                                        11.13(b)(3)(P) describes ICMT as a                        The Exchange does not believe that
                                              MidPoint Match Order with the
                                                                                                        routing option under which an order                    this proposal will permit unfair
                                              MidPoint Peg Order.6
                                                                                                        checks the System for available shares,                discrimination among customers,
                                              ROOC Routing Option                                       then is sent to destinations on the                    brokers, or dealers because the ROOC
                                                Under Rule 11.13(b)(3)(N), an order                     System routing table and then is sent, as              routing option will no longer be
                                              utilizing the ROOC routing option is                      a MidPoint Match Order with a Time-                    available and the updates to the IOCM
                                              designated by the User 7 to participate in                in-Force of IOC to EDGX. Under ICMT,                   and ICMT routing options would apply
                                              the opening, re-opening (following a                      if shares remain unexecuted after                      to all Users equally. The Exchange has
                                              halt, suspension, or pause), or closing                   routing, they are posted to the BATS                   few Users electing the ROOC routing
                                              process of a primary listing market                       Book, unless otherwise instructed by the               option and has determined that the
                                              (BATS BZX, NYSE, Nasdaq, NYSE                             User.                                                  current demand does not warrant the
                                              MKT, or NYSE Arca) if received before                        On July 8, 2015, EDGX filed a                       infrastructure and ongoing maintenance
                                              the opening/re-opening/closing time of                    proposed rule change with the                          expense required to support the
                                              such market. If shares remain                             Commission for immediate effectiveness                 product. Routing through the Exchange
                                              unexecuted after attempting to execute                    to, among other things, replace the                    is voluntary and alternative routing
                                              in the opening, re-opening, or closing                    MidPoint Match Order with the                          options offered by the Exchange as well
                                              process, they are either posted to the                    MidPoint Peg Order.14 Therefore, the                   as other methods remain available to
                                              BATS Book,8 executed, or routed to                        Exchange proposes to update the                        Users that wish to route orders to
                                              destinations on the System 9 routing                      description of the IOCM and ICMT                       participate in the opening, re-opening,
                                              table.10                                                  routing options to replace references to               or closing process of the primary listing
                                                Because few Users elect the ROOC                        the MidPoint Match Order with the                      market.18 In addition, the ROOC routing
                                              routing option, the Exchange has                          MidPoint Peg Order.                                    option is not a core product offering by
                                              determined that the current demand                        Implementation Date                                    the Exchange, nor is the Exchange
                                              does not warrant the infrastructure and                                                                          required by the Act to offer such a
                                                                                                          The Exchange intends to implement
                                              ongoing maintenance expenses required                                                                            product. The proposed updates to
                                                                                                        the proposed changes to the
                                              to support the product. Therefore, the                                                                           routing options IOCM and ICMT are in
                                                                                                        descriptions of the IOCM and ICMT
                                              Exchange proposes to delete the ROOC                                                                             response to a recent rule change by
                                                                                                        routing option immediately.15 The
                                              routing option under 11.13(b)(3)(N).                                                                             EDGX in which EDGX replaced the
                                              Users seeking to route orders to                            11 See e.g., Rule 11.13(b)(3)(J) (describing the     MidPoint Match Order with the
                                              participate in the opening, re-opening,                   INET routing option under which an order checks        MidPoint Peg Order.19 The proposal is
                                              or closing process of a primary listing                   the System for available shares and then is sent to    intended to accurately describe how
                                              market may use alternative methods,                       Nasdaq. If shares remain unexecuted after routing,     orders utilizing the IOCM or ICMT
                                                                                                        they are posted on the Nasdaq book, unless
                                                                                                        otherwise instructed by the User), Rule                routing options are to be handled by the
                                                6 See supra note 5.                                     11.13(b)(3)(K) (describing the RDOT routing option     Exchange in light of the EDGX proposed
                                                7 The  term ‘‘User’’ is defined as ‘‘any Member or      under which an order checks the System for             rule change mentioned above.
                                              Sponsored Participant who is authorized to obtain         available shares and then is sent to destinations on
                                              access to the System pursuant to Rule 11.3.’’ See         the System routing table. If shares remain
                                                                                                                                                               Therefore, the Exchange believes the
                                              Exchange Rule 1.5(cc).                                    unexecuted after routing, they are sent to the NYSE    proposed rule change would make its
                                                 8 The term ‘‘BATS Book is defined as ‘‘the             and can be re-routed by the NYSE. Any remainder        rules clearer and less confusing for
                                              System’s electronic file of orders.’’ Rule 1.5(e).        will be posted to the NYSE, unless otherwise           investors; thereby removing
                                                 9 The term ‘‘System’’ is defined as ‘‘the electronic   instructed by the User), and 11.13(b)(3)(L)
                                              communications and trading facility designated by         (describing the RDOX routing option under which        impediments to and perfecting the
                                              the Board through which securities orders of Users        an order checks the System for available shares, is    mechanism of a free and open market
                                              are consolidated for ranking, execution and, when         then sent to the NYSE and can be re-routed by the      and a national market system, and, in
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                                              applicable, routing away.’’ Rule 1.5(aa).                 NYSE. If shares remain unexecuted after routing,
                                                 10 The term ‘‘System routing table’’ refers to the     they are posted on the NYSE book, unless otherwise
                                                                                                        instructed by the User).                               Commission granting a waiver of the 30-day
                                              proprietary process for determining the specific
                                                                                                          12 See supra note 5.                                 operative delay. 17 CFR 240.19b–4(f)(6)(iii).
                                              trading venues to which the System routes orders                                                                   16 15 U.S.C. 78f(b).
                                                                                                          13 See Rule 11.9(q)(1).b [sic]
                                              and the order in which it routes them. Rule
                                                                                                          14 See supra note 5.                                   17 15 U.S.C. 78f(b)(5).
                                              11.13(b)(3). The ROOC routing option does not
                                                                                                                                                                 18 See supra note 11 and accompanying text.
                                              route to the reopening process for BATS BZX. Rule           15 Implementation of the proposed rule change

                                              11.13(b)(3)(N).                                           immediately upon filing is contingent upon the           19 See supra note 5.




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                                                                            Federal Register / Vol. 80, No. 149 / Tuesday, August 4, 2015 / Notices                                                 46371

                                              general, protecting investors and the                   to accurately describe how orders                     communications relating to the
                                              public interest.                                        utilizing those routing options function              proposed rule change between the
                                                                                                      in light of the recent proposed rule                  Commission and any person, other than
                                              (B) Self-Regulatory Organization’s
                                                                                                      change by EDGX, thereby avoiding                      those that may be withheld from the
                                              Statement on Burden on Competition
                                                                                                      potential investor confusion during the               public in accordance with the
                                                The Exchange does not believe that                    operative delay period. Based on the                  provisions of 5 U.S.C. 552, will be
                                              the proposal will impose any burden on                  foregoing, the Commission believes the                available for Web site viewing and
                                              competition not necessary or                            waiver of the operative delay is                      printing in the Commission’s Public
                                              appropriate in furtherance of the                       consistent with the protection of                     Reference Room, 100 F Street NE.,
                                              purposes of the Act. The proposed rule                  investors and the public interest.22 The              Washington, DC 20549, on official
                                              change is not designed to address any                   Commission hereby grants the waiver                   business days between the hours of
                                              competitive issues but rather avoid                     and designates the proposal operative                 10:00 a.m. and 3:00 p.m. Copies of the
                                              investor confusion by eliminating the                   upon filing.                                          filing will also be available for
                                              ROOC routing option that is to be                          At any time within 60 days of the                  inspection and copying at the principal
                                              discontinued by the Exchange as well as                 filing of the proposed rule change, the               office of the Exchange. All comments
                                              update the IOCM and ICMT routing                        Commission summarily may                              received will be posted without change;
                                              options in response to a recent proposed                temporarily suspend such rule change if               the Commission does not edit personal
                                              rule change by EDGX.20                                  it appears to the Commission that such                identifying information from
                                              (C) Self-Regulatory Organization’s                      action is necessary or appropriate in the             submissions. You should submit only
                                              Statement on Comments on the                            public interest, for the protection of                information that you wish to make
                                              Proposed Rule Change Received From                      investors, or otherwise in furtherance of             available publicly. All submissions
                                              Members, Participants or Others                         the purposes of the Act. If the                       should refer to File Number SR–BYX–
                                                                                                      Commission takes such action, the                     2015–33 and should be submitted on or
                                                The Exchange has neither solicited                    Commission shall institute proceedings                before August 25, 2015.
                                              nor received written comments on the                    to determine whether the proposed rule
                                              proposed rule change.                                                                                           For the Commission, by the Division of
                                                                                                      should be approved or disapproved.                    Trading and Markets, pursuant to delegated
                                              III. Date of Effectiveness of the                       IV. Solicitation of Comments                          authority.23
                                              Proposed Rule Change and Timing for                                                                           Robert W. Errett,
                                              Commission Action                                         Interested persons are invited to
                                                                                                                                                            Deputy Secretary.
                                                                                                      submit written data, views, and
                                                 Because the proposed rule change                     arguments concerning the foregoing,                   [FR Doc. 2015–19017 Filed 8–3–15; 8:45 am]
                                              does not (i) significantly affect the                   including whether the proposed rule                   BILLING CODE 8011–01–P
                                              protection of investors or the public                   change is consistent with the Act.
                                              interest; (ii) impose any significant                   Comments may be submitted by any of
                                              burden on competition; and (iii) become                                                                       SECURITIES AND EXCHANGE
                                                                                                      the following methods:
                                              operative for 30 days from the date on                                                                        COMMISSION
                                              which it was filed, or such shorter time                Electronic Comments
                                                                                                                                                            Proposed Collection; Comment
                                              as the Commission may designate, the                      • Use the Commission’s Internet
                                              proposed rule change has become                                                                               Request
                                                                                                      comment form (http://www.sec.gov/
                                              effective pursuant to Section 19(b)(3)(A)               rules/sro.shtml); or                                  Upon Written Request, Copies Available
                                              of the Act and Rule 19b–4(f)(6)                           • Send an email to rule-comments@                    From: Securities and Exchange
                                              thereunder.21                                           sec.gov. Please include File Number SR–                Commission, Office of FOIA Services,
                                                 A proposed rule change filed                         BYX–2015–33 on the subject line.                       100 F Street NE., Washington, DC
                                              pursuant to Rule 19b–4(f)(6) under the                                                                         20549–2736.
                                              Act normally does not become operative                  Paper Comments
                                                                                                                                                            Extension:
                                              for 30 days after the date of its filing.                 • Send paper comments in triplicate                   Rule 22e–3. SEC File No. 270–603, OMB
                                              However, Rule 19b–4(f)(6)(iii) permits                  to Brent J. Fields, Secretary, Securities                 Control No. 3235–0658.
                                              the Commission to designate a shorter                   and Exchange Commission, 100 F Street
                                              time if such action is consistent with the              NE., Washington, DC 20549–1090.                          Notice is hereby given that, under the
                                              protection of investors and the public                                                                        Paperwork Reduction Act of 1995 (44
                                                                                                      All submissions should refer to File
                                              interest. The Exchange has asked the                                                                          U.S.C. 3501–3520), the Securities and
                                                                                                      Number SR–BYX–2015–33. This file
                                              Commission to waive the 30-day                                                                                Exchange Commission (the
                                                                                                      number should be included on the
                                              operative delay so that the proposal may                                                                      ‘‘Commission’’) has submitted to the
                                                                                                      subject line if email is used. To help the
                                              become operative immediately upon                                                                             Office of Management and Budget a
                                                                                                      Commission process and review your
                                              filing. Waiver of the 30-day operative                                                                        request for extension of the previously
                                                                                                      comments more efficiently, please use                 approved collection of information
                                              delay would allow the Exchange to                       only one method. The Commission will                  discussed below.
                                              modify its rules in a timely manner by:                 post all comments on the Commission’s                    Section 22(e) of the Investment
                                              (i) Eliminating a rule that accounts for                Internet Web site (http://www.sec.gov/                Company Act [15 U.S.C. 80a–22(e)]
                                              a service the Exchange intends to                       rules/sro.shtml). Copies of the                       (‘‘Act’’) generally prohibits funds,
                                              discontinue; and (ii) updating its rules                submission, all subsequent                            including money market funds, from
                                                                                                      amendments, all written statements                    suspending the right of redemption, and
                                                20 Id.
                                                                                                      with respect to the proposed rule                     from postponing the payment or
                                                21 In addition, Rule 19b–4(f)(6)(iii) requires the
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                                                                                                      change that are filed with the                        satisfaction upon redemption of any
                                              Exchange to give the Commission written notice of
                                              the Exchange’s intent to file the proposed rule         Commission, and all written                           redeemable security for more than seven
                                              change, along with a brief description and text of                                                            days. The provision was designed to
                                              the proposed rule change, at least five business days      22 For purposes only of waiving the 30-day
                                                                                                                                                            prevent funds and their investment
                                              prior to the date of filing of the proposed rule        operative delay, the Commission has also
                                              change, or such shorter time as designated by the       considered the proposed rule’s impact on              advisers from interfering with the
                                              Commission. The Exchange has satisfied this             efficiency, competition, and capital formation. See
                                              requirement.                                            15 U.S.C. 78c(f).                                       23 17   CFR 200.30–3(a)(12).



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Document Created: 2015-12-18 14:51:32
Document Modified: 2015-12-18 14:51:32
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 46369 

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