80 FR 50061 - Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use of BATS Exchange, Inc.
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 159 (August 18, 2015)
Federal Register Volume 80, Issue 159 (August 18, 2015)
| Page Range | 50061-50064 | |
| FR Document | 2015-20281 |
[Federal Register Volume 80, Number 159 (Tuesday, August 18, 2015)] [Notices] [Pages 50061-50064] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-20281] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-75678; File No. SR-BATS-2015-58] Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use of BATS Exchange, Inc. August 12, 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 August 3, 2015, BATS Exchange, Inc. (the ``Exchange'' or ``BATS'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I, II and III below, which Items have been prepared by the Exchange. The Exchange has designated the proposed rule change as one establishing or changing a member due, fee, or other charge imposed by the Exchange under Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\ which renders the proposed rule change effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ 15 U.S.C. 78s(b)(3)(A)(ii). \4\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange filed a proposal to amend the fee schedule applicable to Members \5\ and non-members of the Exchange pursuant to BATS Rules 15.1(a) and (c) (``Fee Schedule'') to: (i) Modify the rebate structure for certain routing strategies that route to NASDAQ OMX BX, Inc. (``Nasdaq BX''); and (ii) adopt a new Cross-Asset Step-Up Tier. --------------------------------------------------------------------------- \5\ The term ``Member'' is defined as ``any registered broker or dealer that has been admitted to membership in the Exchange.'' See Exchange Rule 1.5(n). --------------------------------------------------------------------------- The text of the proposed rule change is available at the Exchange's Web site at www.batstrading.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant parts of such statements. (A) Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to: (i) Modify the rebate structure for certain routing strategies that route to Nasdaq BX; and (ii) adopt a new Cross-Asset Step-Up Tier. Amended Fee Code C The Exchange currently provides: (i) A rebate of $0.0010 per share for Members' orders that yield fee code TV, applicable to orders routed to Nasdaq BX using the TRIM2 or TRIM3 routing [[Page 50062]] strategy; \6\ and (ii) a rebate of $0.0013 per share for Members' orders that yield fee code TX, applicable to orders routed to Nasdaq BX using the TRIM routing strategy. The Exchange proposes to amend its Fee Schedule to provide a standard rebate of $0.0010 per share for Members' orders that yield fee code TV, which would apply to all TRIM routing strategies. Thus, fee code TV would continue to include TRIM2 and TRIM3 routing to Nasdaq BX as well as routing to Nasdaq BX using the TRIM routing strategy. The Exchange would, in turn, eliminate fee code TX. The Exchange notes that the $0.0010 per share rebate provided pursuant to the proposed change may still be a higher rebate for an order routed to Nasdaq BX that a Member may obtain when routing directly to Nasdaq BX, depending on the applicable tier for which such Member may qualify. Nasdaq BX currently provides a standard rebate to remove liquidity of $0.0006 per share, with various tiers providing rebates up to $0.0017 per share.\7\ --------------------------------------------------------------------------- \6\ The TRIM routing strategies are defined in Rule 11.13(b)(3)(G). \7\ See the Nasdaq BX fee schedule available at: http://www.nasdaqtrader.com/Trader.aspx?id=bx_pricing. --------------------------------------------------------------------------- Cross-Asset Step-Up Tiers Currently, with respect to the Exchange's equities trading platform (``BATS Equities''), the Exchange determines the liquidity adding rebate that it will provide to Members using the Exchange's tiered pricing structure, which is based on the Member meeting certain volume tiers based on their ADAV \8\ as a percentage of TCV \9\ or ADV \10\ as a percentage of TCV. Included amongst the volume tiers offered by the Exchange are two Cross-Asset Step-Up Tiers for purposes of BATS Equities pricing, which require participation on the Exchange's options platform (``BATS Options''). The current Cross-Asset Step-Up Tiers provide rebates of $0.0027 per share and $0.0028 per share for Tier 1 and Tier 2, respectively. To qualify for Tier 1, a Member must have an Options Step-Up Add TCV that is equal to or greater than 0.30%. To qualify for Tier 2, a Member must have an Options Step-Up Add TCV that is equal to or greater than 0.40%. --------------------------------------------------------------------------- \8\ As provided in the fee schedule, for purposes of BATS Equities pricing, ``ADAV'' means average daily added volume calculated as the number of shares added per day on a monthly basis; neither routed shares nor shares added on any day that the Exchange's system experiences a disruption that lasts for more than 60 minutes during regular trading hours (``Exchange System Disruption'') and on the last Friday in June (the ``Russell Reconstitution Day'') are included in ADAV calculation. \9\ As provided in the fee schedule, for purposes of BATS Equities pricing, ``TCV'' means total consolidated volume calculated as the volume reported by all exchanges and trade reporting facilities to a consolidated transaction reporting plan for the month for which the fees apply, excluding volume on any day that the Exchange experiences an Exchange System Disruption or the Russell Reconstitution Day. \10\ As provided in the fee schedule, for purposes of BATS Equities pricing, ``ADV'' means average daily volume calculated as the number of shares added or removed, combined, per day on a monthly basis; neither routed shares nor shares added or removed on any day that the Exchange experiences an Exchange System Disruption and the Russell Reconstitution Day are included in ADV calculation. --------------------------------------------------------------------------- The Exchange proposes to adopt a new tier, Tier 3, as well as a new definition of ``Options Add TCV'' and a new definition of ``Step-Up ADAV'' in connection with such tier. As proposed, ``Options Add TCV'' for the purposes of BATS Equities pricing would mean ADAV as a percentage of TCV, using the definitions of ADAV and TCV as provided under the Exchange's fee schedule for BATS Options. This definition is similar to existing definitions used for cross-asset tiers on the Exchange but is different from such definitions as it does not depend on the participant's capacity on BATS Options (as does the definition of Options Market Maker Add TCV) nor does it require additional volume levels over and above a certain baseline (as does the definition of Options Step-Up Add TCV). ``Step-Up Add TCV'' for the purposes of BATS Equities pricing would mean ADAV in the relevant baseline month subtracted from current ADAV. Thus, this definition would be similar to the existing definition of Step-Up Add TCV but, in contrast, would not be calculated as a percentage of TCV. Using these definitions, under proposed Tier 3, the Exchange would provide a rebate of $0.0029 per share to a Member with an Options Add TCV that is equal to or greater than 0.30% and a Step-Up ADAV from June 2015 that is equal to or greater than 1,000,000 shares. In addition to the changes proposed above, the Exchange proposes to clarify the definition of ADAV to make clear that volume is calculated ``per day'' on a monthly basis. Further, in order to incorporate Tier 3 into the current table and account for the new definitions, the Exchange proposes non-substantive structural changes to the chart. Implementation Date The Exchange proposes to implement these amendments to its Fee Schedule immediately. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the objectives of Section 6 of the Act,\11\ in general, and furthers the objectives of Section 6(b)(4),\12\ in particular, as it is designed to provide for the equitable allocation of reasonable dues, fees and other charges among its Members and other persons using its facilities. The Exchange also notes that it operates in a highly- competitive market in which market participants can readily direct order flow to competing venues if they deem fee levels at a particular venue to be excessive. The proposed rule change reflects a competitive pricing structure designed to incent market participants to direct their order flow to the Exchange. The Exchange believes that the proposed rates are equitable and non-discriminatory in that they apply uniformly to all Members. The Exchange believes the fees and credits remain competitive with those charged by other venues and therefore continue to be reasonable and equitably allocated to Members. --------------------------------------------------------------------------- \11\ 15 U.S.C. 78f. \12\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- The Exchange believes that its proposal to modify the rebate for Members' orders that utilize the TRIM routing strategy and receive executions of orders routed to Nasdaq BX by eliminating fee code TX and applying fee code TV represents an equitable allocation of reasonable dues, fees, and other charges among Members and other persons using its facilities. The Exchange notes that this proposal will not result in any change to Members using the TRIM2 or TRIM3 routing strategies. Though the proposed change will result in a lower rebate for Members using the TRIM routing strategy, the Exchange notes that the rebate provided for routing to Nasdaq BX through the Exchange is still higher than the rebate provided by Nasdaq BX unless a Member would otherwise qualify for certain higher rebate tiers at Nasdaq BX. Therefore, the Exchange believes that the proposed change to fee code TV and the elimination of fee codes TX is equitable and reasonable. The Exchange notes that routing through the Exchange is voluntary. Lastly, the Exchange also believes that the proposed amendment is non- discriminatory because it applies uniformly to all Members. Volume-based rebates and fees such as the proposed Cross-Asset Step-Up Tier 3 have been widely adopted by equities and options exchanges and are equitable because they are open to all Members on an equal basis and provide additional benefits or discounts that are reasonably related to the value to an exchange's market quality associated [[Page 50063]] with higher levels of market activity, such as higher levels of liquidity provision and/or growth patterns, and introduction of higher volumes of orders into the price and volume discovery processes. The Exchange believes that the proposal to add a Cross-Asset Step-Up Tier 3 is a reasonable, fair and equitable, and not unfairly discriminatory allocation of fees and rebates because it will provide Members with an additional incentive to reach certain thresholds on both the Exchange securities and BATS Options. The increased liquidity from this proposal also benefits all investors by deepening the Exchange and BATS Options liquidity pools, offering additional flexibility for all investors to enjoy cost savings, supporting the quality of price discovery, promoting market transparency and improving investor protection. Such pricing programs thereby reward a Member's growth pattern on the Exchange and such increased volume increases potential revenue to the Exchange, and will allow the Exchange to continue to provide and potentially expand the incentive programs operated by the Exchange. To the extent a Member participates on the Exchange but not on BATS Options, the Exchange does believe that the proposal is still reasonable, equitably allocated and non-discriminatory with respect to such Member based on the overall benefit to the Exchange resulting from the success of BATS Options. As noted above, such success allows the Exchange to continue to provide and potentially expand its existing incentive programs to the benefit of all participants on the Exchange, whether they participate on BATS Options or not. The proposed pricing program is also fair and equitable in that membership in BATS Options is available to all market participants which would provide them with access to the benefits on BATS Options provided by the proposed changes, as described above, even where a member of BATS Options is not necessarily eligible for the proposed increased rebates on the Exchange. Further, the proposed changes will result in Members receiving either the same or an increased rebate than they would currently receive. (B) Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe its proposed amendments to its Fee Schedule would impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange does not believe that the proposed changes represent a significant departure from previous pricing offered by the Exchange or pricing offered by the Exchange's competitors. Additionally, Members may opt to disfavor the Exchange's pricing if they believe that alternatives offer them better value. Accordingly, the Exchange does not believe that the proposed change will impair the ability of Members or competing venues to maintain their competitive standing in the financial markets. The Exchange does not believe that its proposal would burden intramarket competition because the proposed rebate for all TRIM routing strategies would apply uniformly to all Members. With respect to the proposed new tier, the Exchange does not believe that the proposal burdens competition, but instead, enhances competition, as it is intended to increase the competitiveness of and draw additional volume to both BATS Equities and BATS Options. As stated above, the Exchange notes that it operates in a highly competitive market in which market participants can readily direct order flow to competing venues if the [sic] deem fee structures to be unreasonable or excessive. The proposed changes are generally intended to enhance the rebates for liquidity added to the Exchange, which is intended to draw additional liquidity to the Exchange. (C) Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others The Exchange has not solicited, and does not intend to solicit, comments on this proposed rule change. The Exchange has not received any unsolicited written comments from Members or other interested parties. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act \13\ and paragraph (f) of Rule 19b-4 thereunder.\14\ At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. --------------------------------------------------------------------------- \13\ 15 U.S.C. 78s(b)(3)(A). \14\ 17 CFR 240.19b-4(f). --------------------------------------------------------------------------- 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 CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to rule-comments@sec.gov. Please include File Number SR-BATS-2015-58 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-BATS-2015-58. 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-BATS-2015-58 and should be submitted on or before September 8, 2015. [[Page 50064]] For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\15\ Brent J. Fields, Secretary. --------------------------------------------------------------------------- \15\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- [FR Doc. 2015-20281 Filed 8-17-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 159 / Tuesday, August 18, 2015 / Notices 50061
impair the ability of Members or post all comments on the Commission’s of the Act 3 and Rule 19b–4(f)(2)
competing venues to maintain their Internet Web site (http://www.sec.gov/ thereunder,4 which renders the
competitive standing in the financial rules/sro.shtml). Copies of the proposed rule change effective upon
markets. The Exchange does not believe submission, all subsequent filing with the Commission. The
that its proposal would burden amendments, all written statements Commission is publishing this notice to
intramarket competition because the with respect to the proposed rule solicit comments on the proposed rule
proposed rate would apply uniformly to change that are filed with the change from interested persons.
all Members and the Routing Tier would Commission, and all written
be equally available to all Members. communications relating to the
proposed rule change between the I. Self-Regulatory Organization’s
(C) Self-Regulatory Organization’s Statement of the Terms of Substance of
Commission and any person, other than
Statement on Comments on the the Proposed Rule Change
those that may be withheld from the
Proposed Rule Change Received From
public in accordance with the The Exchange filed a proposal to
Members, Participants or Others
provisions of 5 U.S.C. 552, will be amend the fee schedule applicable to
The Exchange has not solicited, and available for Web site viewing and Members 5 and non-members of the
does not intend to solicit, comments on printing in the Commission’s Public Exchange pursuant to BATS Rules
this proposed rule change. The Reference Room, 100 F Street NE., 15.1(a) and (c) (‘‘Fee Schedule’’) to: (i)
Exchange has not received any Washington, DC 20549, on official Modify the rebate structure for certain
unsolicited written comments from business days between the hours of routing strategies that route to NASDAQ
Members or other interested parties. 10:00 a.m. and 3:00 p.m. Copies of the OMX BX, Inc. (‘‘Nasdaq BX’’); and (ii)
III. Date of Effectiveness of the filing will also be available for adopt a new Cross-Asset Step-Up Tier.
Proposed Rule Change and Timing for inspection and copying at the principal The text of the proposed rule change
Commission Action office of the Exchange. All comments is available at the Exchange’s Web site
received will be posted without change; at www.batstrading.com, at the
The foregoing rule change has become the Commission does not edit personal principal office of the Exchange, and at
effective pursuant to Section 19(b)(3)(A) identifying information from the Commission’s Public Reference
of the Act 15 and paragraph (f) of Rule submissions. You should submit only Room.
19b–4 thereunder.16 At any time within information that you wish to make
60 days of the filing of the proposed rule available publicly. All submissions II. Self-Regulatory Organization’s
change, the Commission summarily may should refer to File Number SR–BYX– Statement of the Purpose of, and
temporarily suspend such rule change if 2015–34 and should be submitted on or Statutory Basis for, the Proposed Rule
it appears to the Commission that such before September 8, 2015. Change
action is necessary or appropriate in the In its filing with the Commission, the
public interest, for the protection of Brent J. Fields,
Exchange included statements
investors, or otherwise in furtherance of Secretary. concerning the purpose of and basis for
the purposes of the Act. [FR Doc. 2015–20280 Filed 8–17–15; 8:45 am] the proposed rule change and discussed
IV. Solicitation of Comments BILLING CODE 8011–01–P any comments it received on the
proposed rule change. The text of these
Interested persons are invited to statements may be examined at the
submit written data, views, and SECURITIES AND EXCHANGE places specified in Item IV below. The
arguments concerning the foregoing, COMMISSION Exchange has prepared summaries, set
including whether the proposed rule forth in Sections A, B, and C below, of
[Release No. 34–75678; File No. SR–BATS–
change is consistent with the Act. 2015–58] the most significant parts of such
Comments may be submitted by any of statements.
the following methods: Self-Regulatory Organizations; BATS
Exchange, Inc.; Notice of Filing and (A) Self-Regulatory Organization’s
Electronic Comments Statement of the Purpose of, and
Immediate Effectiveness of a Proposed
• Use the Commission’s Internet Rule Change Related to Fees for Use Statutory Basis for, the Proposed Rule
comment form (http://www.sec.gov/ of BATS Exchange, Inc. Change
rules/sro.shtml); or
• Send an email to rule-comments@ August 12, 2015.
1. Purpose
sec.gov. Please include File Number SR– Pursuant to Section 19(b)(1) of the The Exchange proposes to: (i) Modify
BYX–2015–34 on the subject line. Securities Exchange Act of 1934 (the the rebate structure for certain routing
‘‘Act’’),1 and Rule 19b–4 thereunder,2 strategies that route to Nasdaq BX; and
Paper Comments (ii) adopt a new Cross-Asset Step-Up
notice is hereby given that on August 3,
• Send paper comments in triplicate 2015, BATS Exchange, Inc. (the Tier.
to Brent J. Fields, Secretary, Securities ‘‘Exchange’’ or ‘‘BATS’’) filed with the Amended Fee Code C
and Exchange Commission, 100 F Street Securities and Exchange Commission
NE., Washington, DC 20549–1090. (‘‘Commission’’) the proposed rule The Exchange currently provides: (i)
All submissions should refer to File change as described in Items I, II and III A rebate of $0.0010 per share for
Members’ orders that yield fee code TV,
asabaliauskas on DSK5VPTVN1PROD with NOTICES
Number SR–BYX–2015–34. This file below, which Items have been prepared
number should be included on the by the Exchange. The Exchange has applicable to orders routed to Nasdaq
subject line if email is used. To help the designated the proposed rule change as BX using the TRIM2 or TRIM3 routing
Commission process and review your one establishing or changing a member
3 15 U.S.C. 78s(b)(3)(A)(ii).
comments more efficiently, please use due, fee, or other charge imposed by the 4 17 CFR 240.19b–4(f)(2).
only one method. The Commission will Exchange under Section 19(b)(3)(A)(ii) 5 The term ‘‘Member’’ is defined as ‘‘any
registered broker or dealer that has been admitted
15 15 U.S.C. 78s(b)(3)(A). 1 15 U.S.C. 78s(b)(1). to membership in the Exchange.’’ See Exchange
16 17 CFR 240.19b–4(f). 2 17 CFR 240.19b–4. Rule 1.5(n).
VerDate Sep<11>2014 17:02 Aug 17, 2015 Jkt 235001 PO 00000 Frm 00077 Fmt 4703 Sfmt 4703 E:\FR\FM\18AUN1.SGM 18AUN1](https://thefederalregister.org/doc/80_FR_50220/page/1.svg)
![Federal Register / Vol. 80, No. 159 / Tuesday, August 18, 2015 / Notices 50063
with higher levels of market activity, represent a significant departure from IV. Solicitation of Comments
such as higher levels of liquidity previous pricing offered by the
provision and/or growth patterns, and Exchange or pricing offered by the Interested persons are invited to
introduction of higher volumes of orders Exchange’s competitors. Additionally, submit written data, views, and
into the price and volume discovery Members may opt to disfavor the arguments concerning the foregoing,
processes. The Exchange believes that Exchange’s pricing if they believe that including whether the proposed rule
the proposal to add a Cross-Asset Step- alternatives offer them better value. change is consistent with the Act.
Up Tier 3 is a reasonable, fair and Accordingly, the Exchange does not Comments may be submitted by any of
equitable, and not unfairly believe that the proposed change will the following methods:
discriminatory allocation of fees and impair the ability of Members or
rebates because it will provide Members Electronic Comments
competing venues to maintain their
with an additional incentive to reach competitive standing in the financial • Use the Commission’s Internet
certain thresholds on both the Exchange markets. The Exchange does not believe comment form (http://www.sec.gov/
securities and BATS Options. The that its proposal would burden rules/sro.shtml); or
increased liquidity from this proposal intramarket competition because the
also benefits all investors by deepening • Send an email to rule-comments@
proposed rebate for all TRIM routing
the Exchange and BATS Options sec.gov. Please include File Number SR–
strategies would apply uniformly to all
liquidity pools, offering additional Members. BATS–2015–58 on the subject line.
flexibility for all investors to enjoy cost
With respect to the proposed new tier, Paper Comments
savings, supporting the quality of price
discovery, promoting market the Exchange does not believe that the
• Send paper comments in triplicate
transparency and improving investor proposal burdens competition, but
instead, enhances competition, as it is to Brent J. Fields, Secretary, Securities
protection. Such pricing programs and Exchange Commission, 100 F Street
thereby reward a Member’s growth intended to increase the
competitiveness of and draw additional NE., Washington, DC 20549–1090.
pattern on the Exchange and such
increased volume increases potential volume to both BATS Equities and All submissions should refer to File
revenue to the Exchange, and will allow BATS Options. As stated above, the Number SR–BATS–2015–58. This file
the Exchange to continue to provide and Exchange notes that it operates in a number should be included on the
potentially expand the incentive highly competitive market in which subject line if email is used. To help the
programs operated by the Exchange. To market participants can readily direct Commission process and review your
the extent a Member participates on the order flow to competing venues if the comments more efficiently, please use
Exchange but not on BATS Options, the [sic] deem fee structures to be only one method. The Commission will
Exchange does believe that the proposal unreasonable or excessive. The post all comments on the Commission’s
is still reasonable, equitably allocated proposed changes are generally Internet Web site (http://www.sec.gov/
and non-discriminatory with respect to intended to enhance the rebates for
rules/sro.shtml). Copies of the
such Member based on the overall liquidity added to the Exchange, which
submission, all subsequent
benefit to the Exchange resulting from is intended to draw additional liquidity
amendments, all written statements
the success of BATS Options. As noted to the Exchange.
with respect to the proposed rule
above, such success allows the
Exchange to continue to provide and (C) Self-Regulatory Organization’s change that are filed with the
potentially expand its existing incentive Statement on Comments on the Commission, and all written
programs to the benefit of all Proposed Rule Change Received From communications relating to the
participants on the Exchange, whether Members, Participants or Others proposed rule change between the
they participate on BATS Options or Commission and any person, other than
The Exchange has not solicited, and
not. The proposed pricing program is those that may be withheld from the
does not intend to solicit, comments on
also fair and equitable in that this proposed rule change. The public in accordance with the
membership in BATS Options is Exchange has not received any provisions of 5 U.S.C. 552, will be
available to all market participants unsolicited written comments from available for Web site viewing and
which would provide them with access Members or other interested parties. printing in the Commission’s Public
to the benefits on BATS Options Reference Room, 100 F Street NE.,
provided by the proposed changes, as III. Date of Effectiveness of the Washington, DC 20549, on official
described above, even where a member Proposed Rule Change and Timing for business days between the hours of
of BATS Options is not necessarily Commission Action 10:00 a.m. and 3:00 p.m. Copies of the
eligible for the proposed increased filing will also be available for
rebates on the Exchange. Further, the The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A) inspection and copying at the principal
proposed changes will result in office of the Exchange. All comments
Members receiving either the same or an of the Act 13 and paragraph (f) of Rule
19b–4 thereunder.14 At any time within received will be posted without change;
increased rebate than they would
60 days of the filing of the proposed rule the Commission does not edit personal
currently receive.
change, the Commission summarily may identifying information from
(B) Self-Regulatory Organization’s temporarily suspend such rule change if submissions. You should submit only
asabaliauskas on DSK5VPTVN1PROD with NOTICES
Statement on Burden on Competition it appears to the Commission that such information that you wish to make
The Exchange does not believe its action is necessary or appropriate in the available publicly. All submissions
proposed amendments to its Fee public interest, for the protection of should refer to File Number SR–BATS–
Schedule would impose any burden on investors, or otherwise in furtherance of 2015–58 and should be submitted on or
competition that is not necessary or the purposes of the Act. before September 8, 2015.
appropriate in furtherance of the
purposes of the Act. The Exchange does 13 15 U.S.C. 78s(b)(3)(A).
not believe that the proposed changes 14 17 CFR 240.19b–4(f).
VerDate Sep<11>2014 17:02 Aug 17, 2015 Jkt 235001 PO 00000 Frm 00079 Fmt 4703 Sfmt 4703 E:\FR\FM\18AUN1.SGM 18AUN1](https://thefederalregister.org/doc/80_FR_50220/page/3.svg)
![50064 Federal Register / Vol. 80, No. 159 / Tuesday, August 18, 2015 / Notices
For the Commission, by the Division of the additional limitations of rule Commission, Office of FOIA Services,
Trading and Markets, pursuant to delegated 206(4)–5. The information rule 206(4)– 100 F Street NE., Washington, DC
authority.15 3 requires is necessary to inform 20549–2736.
Brent J. Fields, advisory clients about the nature of the Extension:
Secretary. solicitor’s financial interest in the Form N–8B–2. SEC File No. 270–186, OMB
[FR Doc. 2015–20281 Filed 8–17–15; 8:45 am] recommendation so the prospective Control No. 3235–0186.
BILLING CODE 8011–01–P clients may consider the solicitor’s Notice is hereby given that, pursuant
potential bias, and to protect clients to the Paperwork Reduction Act of 1995
against solicitation activities being (44 U.S.C. 3501 et seq.), the Securities
SECURITIES AND EXCHANGE carried out in a manner inconsistent and Exchange Commission (the
COMMISSION with the adviser’s fiduciary duty to ‘‘Commission’’) has submitted to the
clients. Rule 206(4)–3 is applicable to Office of Management and Budget a
[SEC File No. 270–218, OMB Control No.
3235–0242] all Commission registered investment request for extension of the previously
advisers. The Commission believes that approved collection of information
Submission for OMB Review; approximately 4,422 of these advisers discussed below.
Comment Request have cash referral fee arrangements. The Form N–8B–2 (17 CFR 274.12) is the
rule requires approximately 7.04 burden form used by unit investment trusts
Upon Written Request, Copies Available hours per year per adviser and results in (‘‘UITs’’) other than separate accounts
From: Securities and Exchange a total of approximately 31,130 total that are currently issuing securities,
Commission, Office of FOIA Services, burden hours (7.04 × 4,422) for all including UITs that are issuers of
100 F Street NE., Washington, DC advisers. periodic payment plan certificates and
20549–2736. The disclosure requirements of rule
UITs of which a management
Extension: 206(4)–3 do not require recordkeeping
investment company is the sponsor or
Rule 206(4)–3. or record retention. The collections of
depositor, to comply with the filing and
information requirements under the
Notice is hereby given that, pursuant disclosure requirements imposed by
rules are mandatory. Information subject
to the Paperwork Reduction Act of 1995 section 8(b) of the Investment Company
to the disclosure requirements of rule
(44 U.S.C. 3501 et seq.), the Securities 206(4)–3 is not submitted to the Act of 1940 (15 U.S.C. 80a–8(b)). Form
and Exchange Commission Commission. The disclosures pursuant N–8B–2 requires disclosure about the
(‘‘Commission’’) has submitted to the to the rule are not kept confidential. An organization of a UIT, its securities, the
Office of Management and Budget a agency may not conduct or sponsor, and personnel and affiliated persons of the
request for approval of extension of the a person is not required to respond to, depositor, the distribution and
previously approved collection of a collection of information unless it redemption of securities, the trustee or
information discussed below. displays a currently valid OMB control custodian, and financial statements. The
Rule 206(4)–3 (17 CFR 275.206(4)–3) number. Commission uses the information
under the Investment Advisers Act of The public may view the background provided in the collection of
1940, which is entitled ‘‘Cash Payments documentation for this information information to determine compliance
for Client Solicitations,’’ provides collection at the following Web site, with section 8(b) of the Investment
restrictions on cash payments for client www.reginfo.gov. Comments should be Company Act.
solicitations. The rule requires that an directed to: (i) Desk Officer for the Each registrant subject to the Form N–
adviser pay all solicitors’ fees pursuant Securities and Exchange Commission, 8B–2 filing requirement files Form N–
to a written agreement. When an adviser Office of Information and Regulatory 8B–2 for its initial filing and does not
will provide only impersonal advisory Affairs, Office of Management and file post-effective amendments on Form
services to the prospective client, the Budget, Room 10102, New Executive N–8B–2.1 The Commission staff
rule imposes no disclosure Office Building, Washington, DC 20503, estimates that approximately four
requirements. When the solicitor is or by sending an email to: Shagufta_ respondents each file one Form N–8B–
affiliated with the adviser and the Ahmed@omb.eop.gov; and (ii) Pamela 2 filing annually with the Commission.
adviser will provide individualized Dyson, Director/Chief Information Staff estimates that the burden for
advisory services to the prospective Officer, Securities and Exchange compliance with Form N–8B–2 is
client, the solicitor must, at the time of Commission, c/o Remi Pavlik-Simon, approximately 10 hours per filing. The
the solicitation or referral, indicate to 100 F Street NE., Washington, DC 20549 total hour burden for the Form N–8B–
the prospective client that he is or send an email to: PRA_Mailbox@ 2 filing requirement therefore is 40
affiliated with the adviser. When the sec.gov. Comments must be submitted to hours in the aggregate (4 respondents ×
solicitor is not affiliated with the OMB within 30 days of this notice. one filing per respondent × 10 hours per
adviser and the adviser will provide filing).
Dated: August 13, 2015. Estimates of the burden hours are
individualized advisory services to the
Brent J. Fields, made solely for the purposes of the PRA
prospective client, the solicitor must, at
the time of the solicitation or referral, Secretary. and are not derived from a
provide the prospective client with a [FR Doc. 2015–20327 Filed 8–17–15; 8:45 am] comprehensive or even a representative
copy of the adviser’s brochure and a BILLING CODE 8011–01–P survey or study of the costs of SEC rules
disclosure document containing and forms. The information provided on
asabaliauskas on DSK5VPTVN1PROD with NOTICES
information specified in rule 206(4)–3. Form N–8B–2 is mandatory. The
Amendments to rule 206(4)–3, adopted SECURITIES AND EXCHANGE information provided on Form N–8B–2
in 2010 in connection with rule 206(4)– COMMISSION will not be kept confidential. An agency
5, specify that solicitation activities Submission for OMB Review; 1 Post-effective amendments are filed with the
involving a government entity, as Comment Request Commission on the UIT’s Form S–6. Hence,
defined in rule 206(4)–5, are subject to respondents only file Form N–8B–2 for their initial
Upon Written Request, Copies Available registration statement and not for post-effective
15 17 CFR 200.30–3(a)(12). From: Securities and Exchange amendments.
VerDate Sep<11>2014 17:02 Aug 17, 2015 Jkt 235001 PO 00000 Frm 00080 Fmt 4703 Sfmt 4703 E:\FR\FM\18AUN1.SGM 18AUN1](https://thefederalregister.org/doc/80_FR_50220/page/4.svg)
Document Created: 2015-12-15 12:05:11
Document Modified: 2015-12-15 12:05:11
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 80 FR 50061 |
2024 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR