80 FR 53216 - Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 11.26 Relating to the Reactivation of NSX
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 170 (September 2, 2015)
Federal Register Volume 80, Issue 170 (September 2, 2015)
| Page Range | 53216-53217 | |
| FR Document | 2015-21668 |
[Federal Register Volume 80, Number 170 (Wednesday, September 2, 2015)] [Notices] [Pages 53216-53217] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-21668] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-75770; File No. SR-BYX-2015-37] Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 11.26 Relating to the Reactivation of NSX August 27, 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 18, 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. --------------------------------------------------------------------------- \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). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange filed a proposal to amend Rule 11.26(a) regarding the public disclosure of the sources of data that the Exchange utilizes when performing: (i) Order handling; (ii) order routing; and (iii) related compliance processes to reflect reactivation of the National Stock Exchange, Inc. (``NSX'') on or about August 31, 2015. The text of the proposed rule change is available at the Exchange's Web site at www.batstrading.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant parts of such statements. (A) Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to update Rule 11.26(a) regarding the public disclosure of the sources of data that the Exchange utilizes when performing: (i) Order handling; (ii) order routing; and (iii) related compliance processes to reflect reactivation of the NSX on or about August 31, 2015. The NSX informed the UTP Securities Information Processor (``UTP SIP'') that, subject to regulatory approval, it is projecting to reactivate its status as an operating participant for quotation and trading of Nasdaq-listed securities under the Unlisted Trading Privileges (``UTP'') Plan on or about August 31, 2015. Specifically, the Exchange proposes to amend Rule 11.26(a) to include the NSX by stating it will utilize NSX market data from the CQS/UQDF for purposes of order handling, routing, and related compliance processes. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,\5\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\6\ in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and 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. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78f. \6\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- [[Page 53217]] The Exchange believes that its proposal to update Exchange Rule 11.26(a) to include NSX would ensure that rule correctly identifies and publicly states on a market-by-market basis all of the specific network processor and proprietary data feeds that the Exchange utilizes for the handling, routing, and execution of orders, and for performing the regulatory compliance checks related to each of those functions. The proposed rule change also removes impediments to and perfects the mechanism of a free and open market and protects investors and the public interest because it provides additional specificity, clarity and transparency. (B) Self-Regulatory Organization's Statement on Burden on Competition The Exchange believes its proposed rule change would not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. To the contrary, the Exchange believes the proposal would enhance competition because including all of the exchanges enhances transparency and enables investors to better assess the quality of the Exchange's execution and routing services. (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 Exchange has designated this rule filing as non-controversial under Section 19(b)(3)(A) of the Act \7\ and paragraph (f)(6) of Rule 19b-4 thereunder.\8\ The proposed rule change effects a change that (A) does not significantly affect the protection of investors or the public interest; (B) does not impose any significant burden on competition; and (C) by its terms, does not become operative for 30 days after the date of the filing, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest; provided that the self-regulatory organization has given the Commission written notice of its 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.\9\ --------------------------------------------------------------------------- \7\ 15 U.S.C. 78s(b)(3)(A). \8\ 17 CFR 240.19b-4. \9\ The Exchange has fulfilled this requirement. --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) \10\ normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b4(f)(6)(iii),\11\ the Commission may 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. The Exchange believes that waiver of the 30-day operative delay would benefit investors because it would enable the Exchange to immediately enhance transparency and to accommodate the reactivation of the NSX on or about August 31, 2015 as an operating participant for quotation and trading of Nasdaq-listed securities under the UTP Plan. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest because it will enable the Exchange's rules to accommodate the reactivation of the NSX and to identify, without delay, all of the specific network processor and proprietary data feeds that the Exchange utilizes for the handling, routing, and execution of orders, and for performing the regulatory compliance checks related to each of those functions. Therefore, the Commission hereby waives the 30-day operative delay and designates the proposed rule change to be operative upon filing with the Commission.\12\ --------------------------------------------------------------------------- \10\ 17 CFR 240.19b-4(f)(6). \11\ 17 CFR 240.19b-4(f)(6)(iii). \12\ For purposes only of waiving the operative date of this proposal, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). --------------------------------------------------------------------------- At any time within 60 days of the filing of the proposed rule change, the Commission may summarily temporarily suspend such rule change if it appears to the Commission that such action is: (1) Necessary or appropriate in the public interest; (2) for the protection of investors; or (3) otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposal is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File No. SR-BYX-2015-37 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 No. SR-BYX-2015-37. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of such filing will also be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File No. SR-BYX-2015-37 and should be submitted on or before September 23, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\13\ --------------------------------------------------------------------------- \13\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2015-21668 Filed 9-1-15; 8:45 am] BILLING CODE 8011-01-P
![53216 Federal Register / Vol. 80, No. 170 / Wednesday, September 2, 2015 / Notices
that the proposed rule change will allow For the Commission, by the Division of II. Self-Regulatory Organization’s
the Commission to continue to exercise Trading and Markets, pursuant to delegated Statement of the Purpose of, and
its plenary regulatory authority over the authority.44 Statutory Basis for, the Proposed Rule
Exchange and continue to provide the Robert W. Errett, Change
Commission and the Exchange with Deputy Secretary. In its filing with the Commission, the
access to necessary information that will [FR Doc. 2015–21672 Filed 9–1–15; 8:45 am] Exchange included statements
allow the Exchange to comply, and BILLING CODE 8011–01–P concerning the purpose of and basis for
enforce compliance, with the Act. the proposed rule change and discussed
With respect to the Annual any comments it received on the
Distributions, the Commission notes the SECURITIES AND EXCHANGE proposed rule change. The text of these
Exchange represents that before making COMMISSION statements may be examined at the
any distribution to its Members, the places specified in Item IV below. The
Holdings Board will first provide for [Release No. 34–75770; File No. SR–BYX– Exchange has prepared summaries, set
any regulatory needs of BOX and the 2015–37] forth in Sections A, B, and C below, of
Exchange (as determined by the the most significant parts of such
Exchange Board).42 The Commission Self-Regulatory Organizations; BATS statements.
believes that the requirement to first Y-Exchange, Inc.; Notice of Filing and
(A) Self-Regulatory Organization’s
provide for the regulatory needs of BOX Immediate Effectiveness of a Proposed
Statement of the Purpose of, and
Rule Change To Amend Rule 11.26
and the Exchange is designed to Statutory Basis for, the Proposed Rule
Relating to the Reactivation of NSX
facilitate the ability of the Exchange to Change
fulfill its regulatory obligations under August 27, 2015. 1. Purpose
the Act and help to ensure that the
Pursuant to Section 19(b)(1) of the
proposed provisions regarding The Exchange proposes to update
Securities Exchange Act of 1934 (the
distributions maintain the Rule 11.26(a) regarding the public
‘‘Act’’),1 and Rule 19b–4 thereunder,2
independence of the Exchange’s disclosure of the sources of data that the
notice is hereby given that on August Exchange utilizes when performing: (i)
regulatory function and would not be 18, 2015, BATS Y-Exchange, Inc. (the
made in violation of the Exchange’s Order handling; (ii) order routing; and
‘‘Exchange’’ or ‘‘BYX’’) filed with the (iii) related compliance processes to
legal and regulatory responsibilities. Securities and Exchange Commission
The Commission therefore believes that reflect reactivation of the NSX on or
(‘‘Commission’’) the proposed rule about August 31, 2015. The NSX
the proposed provisions in the Restated change as described in Items I and II
Holdings LLC Agreement related to informed the UTP Securities
below, which Items have been prepared Information Processor (‘‘UTP SIP’’) that,
distributions are consistent with the by the Exchange. The Exchange has
Act. subject to regulatory approval, it is
designated this proposal as a ‘‘non- projecting to reactivate its status as an
IV. Conclusion controversial’’ proposed rule change operating participant for quotation and
pursuant to Section 19(b)(3)(A) of the trading of Nasdaq-listed securities under
For the foregoing reasons, the Act 3 and Rule 19b–4(f)(6)(iii) the Unlisted Trading Privileges (‘‘UTP’’)
Commission finds that the proposed thereunder,4 which renders it effective Plan on or about August 31, 2015.
rule change is consistent with the Act upon filing with the Commission. The Specifically, the Exchange proposes to
and the rules and regulations Commission is publishing this notice to amend Rule 11.26(a) to include the NSX
thereunder applicable to a national solicit comments on the proposed rule by stating it will utilize NSX market
securities exchange. change from interested persons. data from the CQS/UQDF for purposes
IT IS THEREFORE ORDERED, I. Self-Regulatory Organization’s of order handling, routing, and related
pursuant to section 19(b)(2) of the Act 43 Statement of the Terms of Substance of compliance processes.
that the proposed rule change (SR— the Proposed Rule Change 2. Statutory Basis
BOX–2015–22) is approved.
The Exchange filed a proposal to The Exchange believes that the
obligations to investors and the general public and
amend Rule 11.26(a) regarding the proposed rule change is consistent with
shall not take actions which would interfere with public disclosure of the sources of data Section 6(b) of the Act,5 in general, and
the effectuation of decisions by the board of that the Exchange utilizes when furthers the objectives of Section 6(b)(5)
directors of the Exchange relating to its regulatory performing: (i) Order handling; (ii) order of the Act,6 in particular, in that it is
functions (including disciplinary matters) or which routing; and (iii) related compliance designed to prevent fraudulent and
would interfere with the Exchange’s ability to carry
processes to reflect reactivation of the manipulative acts and practices, to
out its responsibilities under the Exchange Act, and
section 4.12(b), which provides that Holdings and National Stock Exchange, Inc. (‘‘NSX’’) promote just and equitable principles of
its Members shall comply with the federal on or about August 31, 2015. trade, to foster cooperation and
securities laws and the rules and regulations The text of the proposed rule change coordination with persons engaged in
thereunder and shall cooperate with the regulating, clearing, settling, processing
Commission and the Exchange pursuant to and to is available at the Exchange’s Web site
at www.batstrading.com, at the information with respect to, and
the extent of their respective regulatory authority).
42 See Notice, supra note 3, at 40103 (‘‘In principal office of the Exchange, and at facilitating transactions in securities, to
mstockstill on DSK4VPTVN1PROD with NOTICES
determining the amount of each Annual the Commission’s Public Reference remove impediments to and perfect the
Distribution, the Holdings Board will first provide Room. mechanism of a free and open market
for any regulatory needs of BOX and the Exchange, and a national market system, and, in
as determined by the Exchange Board, and any general, to protect investors and the
44 17 CFR 200.30–3(a)(12).
Annual Distribution amounts will be calculated
after taking into account all financial and regulatory 1 15 U.S.C. 78s(b)(1). public interest.
needs of the Exchange, as determined by the 2 17 CFR 240.19b–4.
Exchange.’’). 3 15 U.S.C. 78s(b)(3)(A). 5 15 U.S.C. 78f.
43 15 U.S.C. 78s(b)(2). 4 17 CFR 240.19b–4(f)(6)(iii). 6 15 U.S.C. 78f(b)(5).
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![Federal Register / Vol. 80, No. 170 / Wednesday, September 2, 2015 / Notices 53217
The Exchange believes that its proposed rule change, along with a brief including whether the proposal is
proposal to update Exchange Rule description and text of the proposed consistent with the Act. Comments may
11.26(a) to include NSX would ensure rule change, at least five business days be submitted by any of the following
that rule correctly identifies and prior to the date of filing of the methods:
publicly states on a market-by-market proposed rule change, or such shorter
basis all of the specific network time as designated by the Commission.9 Electronic Comments
processor and proprietary data feeds A proposed rule change filed under • Use the Commission’s Internet
that the Exchange utilizes for the Rule 19b–4(f)(6) 10 normally does not comment form (http://www.sec.gov/
handling, routing, and execution of become operative prior to 30 days after rules/sro.shtml); or
orders, and for performing the the date of the filing. However, pursuant
regulatory compliance checks related to to Rule 19b4(f)(6)(iii),11 the Commission • Send an email to rule-comments@
each of those functions. The proposed may designate a shorter time if such sec.gov. Please include File No. SR–
rule change also removes impediments action is consistent with the protection BYX–2015–37 on the subject line.
to and perfects the mechanism of a free of investors and the public interest. The Paper Comments
and open market and protects investors Exchange has asked the Commission to
and the public interest because it waive the 30-day operative delay so that • Send paper comments in triplicate
provides additional specificity, clarity the proposal may become operative to Secretary, Securities and Exchange
and transparency. immediately upon filing. The Exchange Commission, 100 F Street NE.,
believes that waiver of the 30-day Washington, DC 20549–1090.
(B) Self-Regulatory Organization’s operative delay would benefit investors
Statement on Burden on Competition because it would enable the Exchange to All submissions should refer to File No.
The Exchange believes its proposed immediately enhance transparency and SR–BYX–2015–37. This file number
rule change would not impose any to accommodate the reactivation of the should be included on the subject line
burden on competition that is not NSX on or about August 31, 2015 as an if email is used. To help the
necessary or appropriate in furtherance operating participant for quotation and Commission process and review your
of the purposes of the Act. To the trading of Nasdaq-listed securities under comments more efficiently, please use
contrary, the Exchange believes the the UTP Plan. The Commission believes only one method. The Commission will
proposal would enhance competition that waiving the 30-day operative delay post all comments on the Commission’s
because including all of the exchanges is consistent with the protection of Internet Web site (http://www.sec.gov/
enhances transparency and enables investors and the public interest rules/sro.shtml). Copies of the
investors to better assess the quality of because it will enable the Exchange’s submission, all subsequent
the Exchange’s execution and routing rules to accommodate the reactivation of amendments, all written statements
services. the NSX and to identify, without delay, with respect to the proposed rule
all of the specific network processor and change that are filed with the
(C) Self-Regulatory Organization’s proprietary data feeds that the Exchange Commission, and all written
Statement on Comments on the utilizes for the handling, routing, and communications relating to the
Proposed Rule Change Received From execution of orders, and for performing proposed rule change between the
Members, Participants or Others the regulatory compliance checks Commission and any person, other than
The Exchange has not solicited, and related to each of those functions. those that may be withheld from the
does not intend to solicit, comments on Therefore, the Commission hereby public in accordance with the
this proposed rule change. The waives the 30-day operative delay and provisions of 5 U.S.C. 552, will be
Exchange has not received any designates the proposed rule change to available for Web site viewing and
unsolicited written comments from be operative upon filing with the printing in the Commission’s Public
Members or other interested parties. Commission.12 Reference Room, 100 F Street NE.,
At any time within 60 days of the Washington, DC 20549, on official
III. Date of Effectiveness of the filing of the proposed rule change, the business days between the hours of
Proposed Rule Change and Timing for Commission may summarily 10:00 a.m. and 3:00 p.m. Copies of such
Commission Action temporarily suspend such rule change if filing will also be available for
The Exchange has designated this rule it appears to the Commission that such inspection and copying at the principal
filing as non-controversial under action is: (1) Necessary or appropriate in office of the Exchange. All comments
Section 19(b)(3)(A) of the Act 7 and the public interest; (2) for the protection received will be posted without change;
paragraph (f)(6) of Rule 19b–4 of investors; or (3) otherwise in the Commission does not edit personal
thereunder.8 The proposed rule change furtherance of the purposes of the Act. identifying information from
effects a change that (A) does not If the Commission takes such action, the submissions. You should submit only
significantly affect the protection of Commission shall institute proceedings information that you wish to make
investors or the public interest; (B) does to determine whether the proposed rule available publicly. All submissions
not impose any significant burden on should be approved or disapproved. should refer to File No. SR–BYX–2015–
competition; and (C) by its terms, does 37 and should be submitted on or before
IV. Solicitation of Comments
not become operative for 30 days after September 23, 2015.
the date of the filing, or such shorter Interested persons are invited to
For the Commission, by the Division of
time as the Commission may designate submit written data, views and
Trading and Markets, pursuant to delegated
mstockstill on DSK4VPTVN1PROD with NOTICES
if consistent with the protection of arguments concerning the foregoing, authority.13
investors and the public interest; Robert W. Errett,
9 The Exchange has fulfilled this requirement.
provided that the self-regulatory
10 17 CFR 240.19b–4(f)(6). Deputy Secretary.
organization has given the Commission 11 17 CFR 240.19b–4(f)(6)(iii).
[FR Doc. 2015–21668 Filed 9–1–15; 8:45 am]
written notice of its intent to file the 12 For purposes only of waiving the operative date
BILLING CODE 8011–01–P
of this proposal, the Commission has considered
7 15 U.S.C. 78s(b)(3)(A). the proposed rule’s impact on efficiency,
8 17 CFR 240.19b–4. competition, and capital formation. 15 U.S.C. 78c(f). 13 17 CFR 200.30–3(a)(12).
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Document Created: 2018-02-26 10:11:12
Document Modified: 2018-02-26 10:11:12
| 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 53216 |
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