80 FR 51340 - 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 163 (August 24, 2015)

[Federal Register Volume 80, Number 163 (Monday, August 24, 2015)]
[Notices]
[Pages 51340-51342]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-20790]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75723; File No. SR-BATS-2015-60]


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 18, 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 7, 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange filed a proposal to amend 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 remove fees for BATS Investor Pro 
and BATS Investor RT, as the Exchange will no longer make these 
products available as of August 29, 2015.
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    \5\ The term ``Member'' is defined as ``any registered broker or 
dealer that has been admitted to membership in the Exchange.'' See 
Exchange Rule 1.5(n).
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    The text of the proposed rule change is available at the Exchange's 
Web site

[[Page 51341]]

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 remove fees for BATS Investor Pro and BATS 
Investor RT, as the Exchange will no longer make these products 
available as of August 29, 2015. The Exchange currently maintains a 
revenue sharing program with Interactive Data Corporation, acting by 
and through its division, Interactive Data Desktop Solutions, and its 
subsidiary, Interactive Data Online Properties, Inc. (collectively 
``IDC''), whereby the Exchange has agreed to make available, through 
IDC, private labeled versions of IDC's Market-Q and LiveCharts products 
(the ``Revenue Sharing Program'').\6\ Pursuant to an agreement (the 
``Agreement'') between IDC and the Exchange, Market-Q has been marketed 
by the Exchange under the private label name ``BATS Investor Pro'' and 
LiveCharts has been marketed by the Exchange under the private label 
name ``BATS Investor RT'' (BATS Investor Pro and BATS Investor RT, 
collectively, the ``Private Labeled Products''). Under the Agreement, 
the current price schedule charges subscribers a monthly fee of $125.00 
for BATS Investor Pro and a monthly fee of $24.95 for BATS Investor 
RT.\7\
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    \6\ See Securities Exchange Act Release Nos. 70264 (August 27, 
2013), 78 FR 54338 (September 3, 2013) (SR-BATS-2013-045); and 70687 
(October 15, 2013), 78 FR 62921 (October 22, 2013) (SR-BATS-2013-
055).
    \7\ Under the Agreement, IDC determines the price schedule for 
the Private Labeled Products, and has the right to change the price 
schedule at any time in its sole discretion upon prior notice to 
BATS; provided, however, that such changes to the price schedule do 
not become effective unless and until the applicable fees set forth 
in the price schedule have been filed with and/or approved by the 
Commission through a proposed rule change submitted by the Exchange 
in accordance with the Act.
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    Pursuant to and in accordance with the terms and conditions of the 
Agreement, on July 24, 2015, the Exchange provided written notice of 
termination of the Agreement to IDC, effective as of August 29, 2015. 
Therefore, inclusion of the Private Labeled Products within Exchange's 
Fee Schedule would no longer serve any legitimate purpose upon the 
Revenue Sharing Program being terminated by the Exchange. The Exchange 
is terminating the Revenue Share Program with IDC due to lack of 
interest from data recipients for the Private Labeled Products. 
Currently, there are no active clients for either Private Labeled 
Product.
Implementation Date
    The Exchange proposes to implement these amendments to its Fee 
Schedule on August 31, 2015.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of section 6 of the Act,\8\ in general, and 
furthers the objectives of section 6(b)(4),\9\ in particular, as it is 
designed to provide for the equitable allocation of reasonable dues, 
fees and other charges among its Members and other persons using its 
facilities because it would delete fees for products that are to be 
discontinued by the Exchange, thereby eliminating investor confusion. 
In addition, the Exchange has no subscribers to either of the Private 
Labeled Products, neither of the Private Labeled Products is a core 
product offering by the Exchange, and the Exchange is not required by 
the Act to offer such products. The proposed rule change will not 
permit unfair discrimination among customers, brokers, or dealers 
because the Private Labeled Products will no longer be offered by the 
Exchange.
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    \8\ 15 U.S.C. 78f.
    \9\ 15 U.S.C. 78f(b)(4).
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    Lastly, the Exchange also believes that the proposed amendment to 
its Fee Schedule is reasonable and non-discriminatory because it will 
apply uniformly to all members.

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 proposed 
rule change will terminate the Revenue Sharing Program with IDC, as 
well as the fees for the products offered thereunder from its fee 
schedule, effective as of August 29, 2015, and is not designed to have 
a competitive impact. Therefore, the Exchange does not believe the 
proposed rule change will have any effect on competition.

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 \10\ and paragraph (f) of Rule 19b-4 
thereunder.\11\ 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.
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-BATS-2015-60 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-BATS-2015-60. 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

[[Page 51342]]

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 also will be available for inspection 
and copying at the principal office of the Exchange. All comments 
received will be posted without change; the Commission does not edit 
personal identifying information from submissions. You should submit 
only information that you wish to make available publicly. All 
submissions should refer to File Number SR-BATS-2015-60, and should be 
submitted on or before September 14, 2015.
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    \12\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-20790 Filed 8-21-15; 8:45 am]
BILLING CODE 8011-01-P