80 FR 54631 - Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of Filing of Proposed Rule Change To Amend Rules 1.5(r) and 11.1 and Adopt New Rule 11.1(a)(1)
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 175 (September 10, 2015)
Federal Register Volume 80, Issue 175 (September 10, 2015)
| Page Range | 54631-54634 | |
| FR Document | 2015-22755 |
[Federal Register Volume 80, Number 175 (Thursday, September 10, 2015)] [Notices] [Pages 54631-54634] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-22755] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-75831; File No. SR-BYX-2015-38] Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of Filing of Proposed Rule Change To Amend Rules 1.5(r) and 11.1 and Adopt New Rule 11.1(a)(1) September 3, 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 September 1, 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 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. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange filed a proposal to amend the definition of Pre- Opening Session under Rule 1.5(r) to state that the Pre-Opening Session will start at 7:00 a.m. rather than 8:00 a.m. Eastern Time and Rule 11.1(a) to account for the Pre-Opening Session starting at 7:00 a.m. Eastern Time. The Exchange also proposes to adopt new Rule 11.1(a)(1) to define Effective Start Time, which would be an order instruction enabling Members \3\ [sic] indicate a time upon which their order may become eligible for execution. --------------------------------------------------------------------------- \3\ The term ``Member'' is defined as ``any registered broker or dealer that has been admitted to membership in the Exchange. A Member will have the status of a ``member'' of the Exchange as that term is defined in Section 3(a)(3) of the Act. Membership may be granted to a sole proprietor, partnership, corporation, limited liability company or other organization which is a registered broker or dealer pursuant to Section 15 of the Act, and which has been approved by 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 amend the definition of Pre-Opening Session under Rule 1.5(r) to state that the Pre-Opening Session will start at 7:00 a.m. rather than 8:00 a.m. Eastern Time and Rule 11.1(a) to account for the Pre-Opening Session starting at 7:00 a.m. Eastern Time. The Exchange also proposes to adopt new Rule 11.1(a)(1) to define Effective Start Time, which would be an order instruction enabling Members indicate a time upon which their order may become eligible for execution. Pre-Opening Session 7:00 a.m. Start The Exchange trading day is currently divided into two sessions: (i) The Pre-Opening Session which starts at 8:00 a.m. and ends at 9:30 a.m. Eastern Time; and (ii) the Regular Trading Hours which runs from 9:30 a.m. to 4:00 p.m. Eastern Time. The Exchange proposes to amend the definition of ``Pre-Opening Session'' under Rule 1.5(r) to state that the Pre-Opening Session will start at 7:00 a.m. rather than 8:00 a.m. Eastern Time.\4\ --------------------------------------------------------------------------- \4\ The Exchange notes that NYSE Arca, Inc. (``NYSE Arca'') operates an Opening Session that starts at 4:00 a.m. Eastern Time (1:00 a.m. Pacific Time) and ends at 9:30 a.m. Eastern Time (6:30 a.m. Pacific Time). See NYSE Arca Rule 7.34(a)(1). The Nasdaq Stock Market LLC (``Nasdaq'') operates a pre-market session that also opens at 4:00 a.m. and ends at 9:30 a.m. Eastern Time. See Nasdaq Rule 4701(g). See also Securities Exchange Act Release No. 69151 (March 15, 2013), 78 FR 17464 (March 21, 2013) (SR-Nasdaq-2013-033) (Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Extend the Pre-Market Hours of the Exchange to 4:00 a.m. EST). --------------------------------------------------------------------------- The Exchange also proposes to amend Rule 11.1(a) to account for the Pre-Opening Session starting at 7:00 a.m. Eastern Time. Other than the proposal to change the start of the Pre-Opening Session from 8:00 a.m. to 7:00 a.m. Eastern Time discussed above, the Exchange does not propose to amend the substance or operation of Rule 11.1(a). As amended, orders entered between 6:00 a.m. and 7:00 a.m. Eastern Time, rather than 6:00 a.m. and 8:00 a.m. Eastern Time, would not eligible for execution until the start of the Pre-Opening Session or Regular Trading Hours,\5\ depending on the Time-in-Force [[Page 54632]] (``TIF'') \6\ selected by the User.\7\ Rule 11.1(a) will also be amended to state that the Exchange will not accept the following orders prior to 7:00 a.m. Eastern Time, rather than 8:00 a.m.: BATS Post Only Orders,\8\ Partial Post Only at Limit Orders,\9\ Intermarket Sweep Orders (``ISOs''),\10\ BATS Market Orders \11\ with a TIF other than Regular Hours Only,\12\ Minimum Quantity Orders \13\ that also include a TIF of Regular Hours Only, and all orders with a TIF instruction of Immediate-or-Cancel (``IOC'') \14\ or Fill-or-Kill (``FOK'').\15\ At the commencement of the Pre-Opening Session, orders entered between 6:00 a.m. and 7:00 a.m. Eastern Time, rather than 6:00 a.m. and 8:00 a.m. Eastern Time, will be handled in time sequence, beginning with the order with the oldest time stamp, and will be placed on the BATS Book,\16\ routed, cancelled, or executed in accordance with the terms of the order. --------------------------------------------------------------------------- \5\ ``Regular Trading Hours'' is defined as ``the time between 9:30 a.m. and 4:00 p.m. Eastern Time.'' See Exchange Rule 1.5(w). \6\ The Times-In-Force instructions available on the Exchange are set forth under Exchange Rule 11.9(b). \7\ ``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\ See Exchange Rule 11.9(c)(6). \9\ See Exchange Rule 11.9(c)(7). \10\ See Exchange Rule 11.9(d). \11\ See Exchange Rule 11.9(a)(2). \12\ See Exchange Rule 11.9(b)(7). \13\ See Exchange Rule 11.9(c)(5). \14\ See Exchange Rule 11.9(b)(1). \15\ See Exchange Rule 11.9(b)(6). \16\ See Exchange Rule 1.5(e). --------------------------------------------------------------------------- Operations. From the Members' operational perspective, the Exchange's goal is to permit trading for those that choose to trade, without imposing burdens on those that do not. Thus, for example, the Exchange will not require any Member to participate in the extended session, including not requiring registered market makers to make two- sided markets between 7:00 a.m. and 8:00 a.m. The Exchange will minimize Members' preparation efforts to the greatest extent possible by allowing Members to trade beginning at 7:00 a.m. with the same equipment, connectivity, order types, and data feeds they currently use from 8:00 a.m. onwards. Opening Process. The Exchange will offer no opening process at 7:00 a.m., just as it offers no opening process at 8:00 a.m. today. Instead, at 7:00 a.m., the System will ``wake up'' by loading in price/time priority all open trading interest entered after 6:00 a.m. Also at 7:00 a.m., the Exchange will open the execution system and accept new eligible orders, just as it currently does at 8:00 a.m. Members will be permitted to enter orders beginning at 6:00 a.m. Market Makers will be permitted but not required to open their quotes beginning at 7:00 a.m. in the same manner they open their quotes today beginning at 8:00 a.m. Order Types. Every order type that is currently available beginning at 8:00 a.m. will be available beginning at 7:00 a.m. All other order types, and all order type behaviors, will otherwise remain unchanged. The Exchange will not extend the expiration times of any orders. For example, an order that is currently available from 8:00 a.m. to 4:00 p.m. will be modified to be available from 7:00 a.m. to 4:00 p.m. An order that is available from 8:00 a.m. to 9:30 a.m. will be modified to be available from 7:00 a.m. to 9:30 a.m. Routing Services. The Exchange will route orders to away markets between 7:00 a.m. and 8:00 a.m., just as it does today between 8:00 a.m. and 9:30 a.m. All routing strategies set forth in Exchange Rule 11.11 will remain otherwise unchanged, performing the same instructions they perform between 7:00 a.m. and 8:00 a.m. today. Order Processing. Order processing will operate beginning at 7:00 a.m. just as it does today beginning at 8:00 a.m. There will be no changes to the ranking, display, and execution algorithms processes or rules. Data Feeds. The Exchange will report the best bid and offer on the Exchange to the appropriate network processor, as it currently does beginning 8:00 a.m. The Exchange's proprietary data feeds will be disseminated beginning at 7:00 a.m. using the same formats and delivery mechanisms with which the Exchange currently disseminates them beginning at 8:00 a.m. Trade Reporting. Trades executed between 7:00 a.m. and 8:00 a.m. will be reported to the appropriate network processor with the ``.T'' modifier, just as they are reported today between at 8:00 a.m. and 9:30 a.m. Fees. The Exchange is not changing any fees in connection with this proposal. Market Surveillance. The Exchange's commitment to high quality regulation at all times will extend to 7:00 a.m. The Exchange will offer all surveillance coverage currently performed by the Exchange's surveillance systems, which will launch by the time trading starts at 7:00 a.m. Clearly Erroneous Trade Processing. The Exchange will process trade breaks beginning at 7:00 a.m. pursuant to Exchange Rule 11.13 just as it does today beginning at 8:00 a.m. Effective Start Time The Exchange propose to adopt a new defined term, Effective Start Time, under proposed paragraph (a)(1) to Rule 11.1. Effective Start Time would be defined as an instruction a User may attach to an order to buy or sell which indicates the time upon which the order is to become eligible for execution. Like orders placed on the BATS Book at the start of the Pre-Opening Session under Rule 11.1(a), at the Effective Start Time, the order will be placed on the BATS Book, routed, cancelled, or executed in accordance with the terms of the order. Once received, orders with an Effective Start Time are placed in a suspended state and not placed on the BATS Book until the Effective Start Time selected by the User. Orders with an Effective Start Time are treated like all other orders once placed on the BATS Book and will receive a time stamp at the time the order becomes eligible for execution. Pursuant to Rule 11.12, orders entered with identical Effective Start Times will retain their priority as compared to each other based upon the time such orders were initially received by the System. In general, a User may specify a time between 7:00 a.m. and 4:00 p.m. Eastern Time as the order's Effective Start Time, subject to the trading sessions that the particular order type is eligible for execution. A Member would not be able to combine an Effective Start Time with BATS Post Only Orders, BATS Market Orders, Minimum Quantity Orders, ISOs, or orders that include a TIF of IOC or FOK. The Effective Start Time instruction would be available for all other order types that include a TIF other than IOC or FOK. This is also consistent with current Rule 11.1(a), under which the Exchange does not accept the following orders prior to the start of the Pre-Opening Session: BATS Post Only Orders, Partial Post Only at Limit Orders, ISO, BATS Market Orders with a TIF other than Regular Hours Only, Minimum Quantity Orders that also include a TIF of Regular Hours Only, and all orders with a TIF instruction of IOC or FOK. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,\17\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\18\ in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and to remove impediments to and perfect the mechanism of a free and [[Page 54633]] open market and a national market system. --------------------------------------------------------------------------- \17\ 15 U.S.C. 78f. \18\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- Pre-Opening Session 7:00 a.m. Start The Exchange believes its proposal to amend Rule 1.5(r) to state that the Pre-Opening Session will start at 7:00 a.m. rather than 8:00 a.m. Eastern Time and Rule 11.1(a) to account for the Pre-Opening Session starting at 7:00 a.m. Eastern Time promote just and equitable principles of trade, and to remove impediments to and perfect the mechanism of a free and open market and a national market system. The Exchange believes that opening its system at 7:00 a.m. will benefit investors, the national market system, Members and the Exchange market. Opening at 7:00 a.m. will benefit investors and the national market system by increasing competition for order flow and executions, and thereby spurring product enhancements and lowering prices. Opening at 7:00 a.m. will benefit Members and the Exchange market by increasing trading opportunities between 7:00 a.m. and 8:00 a.m. without increasing ancillary trading costs (telecommunications, data, connectivity, etc.) and, thereby, decreasing average trading costs per share. Opening the Exchange at 7:00 a.m. will also benefit Members that choose not to participate in the early hours but nonetheless gain the opportunity to interact with liquidity entered by other members during the early session. The proposed rule change promotes just and equitable principles of trade by offering additional trading opportunities to Members that desire them, without imposing burdens on Members that do not. The proposal will facilitate a well-regulated, orderly, and efficient market during a period of time that is currently underserved. The Exchange notes that the proposed trading period has been available on NYSE Arca and Nasdaq.\19\ The Exchange believes that the availability of trading between 7:00 a.m. and 8:00 a.m. has been beneficial to market participants including investors and issuers on other markets. The Exchange believes that offering a competing trading session will further benefit investors by promoting competition and order interaction, while imposing no added costs on investors or other market participants that choose not avail themselves of these benefits. --------------------------------------------------------------------------- \19\ See supra note 4. --------------------------------------------------------------------------- Effective Start Time The Exchange believes its proposed Effective Start Time instruction also promotes just and equitable principles of trade, and removes impediments to and perfects the mechanism of a free and open market and a national market system. The Exchange believes that the proposed Effective Start Time instruction will provide Users with greater control over their orders by electing a specific time upon which their order may become eligible for execution. The concept of selecting conditions during which an order it [sic] to be eligible for execution is not novel. The operation of the Effective Start Time instruction is similar to functionality available on the Exchange and elsewhere that permits members to elect when their orders are to become eligible for executions. Specifically, on the Exchange, a User may elect a buy (sell) Stop Order or Stop Limit Order indicating that the order become eligible for execution when the consolidated last sale (purchase) in a security occurs at or above (below) a specified Stop Price.\20\ In addition, a User may elect the trading session(s) during which their order would be eligible for execution. In such case, the User may enter an order during the Pre-Opening Session and select that such order not be eligible for execution until 9:30 a.m., the start of Regular Trading Hours. Conversely, Members also maintain the ability to elect when their order should expire or be cancelled. For example, a User may elect a TIF instruction of Day, GTD, or GTX, all which state that the order cancelled if not executed by a certain time.\21\ Lastly, similar functionality is currently available on NYSE Arca.\22\ --------------------------------------------------------------------------- \20\ See Exchange Rules 11.9(c)(17) and (c)(18). See also New York Stock Exchange, Inc. (``NYSE'') Rule 13(e)(7). \21\ See Exchange Rules 11.9(b)(2),(4), and (5). See also Nasdaq Rule 4703(a), and NYSE Rule 13(b). \22\ NYSE Arca permits the selection of an Effective Time (Tag 168), like the Exchange proposes herein, and Expire Time (Tag 126). See NYSE Arca FIX Specifications, available at https://www.nyse.com/publicdocs/nyse/markets/nyse/FIX_Specification_and_API.pdf (dated June 8, 2015). --------------------------------------------------------------------------- The Exchange believes it has appropriately limited the availability of the Effective Start Time instruction to exclude its use with order types and order instructions that it may be deemed inconsistent with. Specifically, the Effective Time instruction is not available for ISOs and the use of such an instruction may be considered inconsistent with a Member's responsibility to comply with the requirements of Regulation NMS relating to ISOs. In addition, the Effective Start Time instruction is not available for BATS Market Orders or orders with a TIF instruction of IOC or FOK as well as orders with BATS Post Only Order or Minimum Quantity Orders. BATS Market Orders and orders with a TIF instruction of IOC and FOK are immediately executable once placed on the BATS Book. Permitting the use of an Effective Start time with such orders appears inconsistent as a User will not know at the time of order entry what the market for such a security would be at the selected Effective Start Time. 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. The Exchange believes the proposal to start the Pre-Opening Session at 7:00 a.m. Eastern Time would enhance competition by enabling the Exchange to directly compete with NYSE Arca and Nasdaq for order flow and executions starting at 7:00 a.m., rather than 8:00 a.m. In addition, the proposed Effective Start Time instruction will enable the Exchange to provide similar functionality as NYSE Arca. The fact that the extending the Pre-Opening Session and Effective Start Time are themselves a response to the competition provided by other markets is evidence of its pro- competitive nature. 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 Within 45 days of the date of publication of this notice in the Federal Register or within such longer period up to 90 days (i) as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will: (A) By order approve or disapprove the proposed rule change, or (B) institute proceedings to determine whether the proposed rule change should be disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, [[Page 54634]] 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 [email protected]. Please include File Number SR-BYX-2015-38 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-BYX-2015-38. 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 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-BYX-2015-38, and should be submitted on or before October 1, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\23\ --------------------------------------------------------------------------- \23\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2015-22755 Filed 9-9-15; 8:45 am] BILLING CODE 8011-01-P
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a loss of investor confidence in the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 A. Self-Regulatory Organization’s
integrity of our capital markets. All notice is hereby given that on Statement of the Purpose of, and
information is provided to the public for September 1, 2015, BATS Y-Exchange, Statutory Basis for, the Proposed Rule
review. The information required is Inc. (the ‘‘Exchange’’ or ‘‘BYX’’) filed Change
filed on occasion and is mandatory. We with the Securities and Exchange
estimate that approximately 13,000 1. Purpose
Commission (‘‘Commission’’) the
issuers make Regulation FD disclosures proposed rule change as described in The Exchange proposes to amend the
approximately five times a year for a Items I and II below, which Items have definition of Pre-Opening Session under
total of 58,000 submissions annually, been prepared by the Exchange. The Rule 1.5(r) to state that the Pre-Opening
not including an estimated 7,000 issuers Commission is publishing this notice to Session will start at 7:00 a.m. rather
who file Form 8–K to comply with solicit comments on the proposed rule than 8:00 a.m. Eastern Time and Rule
Regulation FD. We estimate that it takes change from interested persons. 11.1(a) to account for the Pre-Opening
approximately 5 hours per response
Session starting at 7:00 a.m. Eastern
(58,000 responses × 5 hours) for a total I. Self-Regulatory Organization’s
burden of 290,000 hours annually. In Statement of the Terms of Substance of Time. The Exchange also proposes to
addition, we estimate that 25% of the 5 the Proposed Rule Change adopt new Rule 11.1(a)(1) to define
hours (1.25 hours) is prepared by the Effective Start Time, which would be an
filer for an annual reporting burden of The Exchange filed a proposal to order instruction enabling Members
72,500 hours (1.25 hours per response × amend the definition of Pre-Opening indicate a time upon which their order
58,000 responses). Session under Rule 1.5(r) to state that may become eligible for execution.
the Pre-Opening Session will start at
An agency may not conduct or Pre-Opening Session 7:00 a.m. Start
7:00 a.m. rather than 8:00 a.m. Eastern
sponsor, and a person is not required to
Time and Rule 11.1(a) to account for the The Exchange trading day is currently
respond to, a collection of information
Pre-Opening Session starting at 7:00 divided into two sessions: (i) The Pre-
unless it displays a currently valid
control number. a.m. Eastern Time. The Exchange also Opening Session which starts at 8:00
proposes to adopt new Rule 11.1(a)(1) to a.m. and ends at 9:30 a.m. Eastern Time;
The public may view the background define Effective Start Time, which and (ii) the Regular Trading Hours
documentation for this information would be an order instruction enabling
collection at the following Web site, which runs from 9:30 a.m. to 4:00 p.m.
Members 3 [sic] indicate a time upon Eastern Time. The Exchange proposes to
www.reginfo.gov. Comments should be which their order may become eligible
directed to: (i) Desk Officer for the amend the definition of ‘‘Pre-Opening
for execution. Session’’ under Rule 1.5(r) to state that
Securities and Exchange Commission,
Office of Information and Regulatory The text of the proposed rule change the Pre-Opening Session will start at
Affairs, Office of Management and is available at the Exchange’s Web site 7:00 a.m. rather than 8:00 a.m. Eastern
Budget, Room 10102, New Executive at www.batstrading.com, at the Time.4
Office Building, Washington, DC 20503, principal office of the Exchange, and at The Exchange also proposes to amend
or by sending an email to: Shagufta_ the Commission’s Public Reference Rule 11.1(a) to account for the Pre-
Ahmed@omb.eop.gov; and (ii) Pamela Room. Opening Session starting at 7:00 a.m.
Dyson, Director/Chief Information Eastern Time. Other than the proposal
Officer, Securities and Exchange II. Self-Regulatory Organization’s
Statement of the Purpose of, and to change the start of the Pre-Opening
Commission, c/o Remi Pavlik-Simon, Session from 8:00 a.m. to 7:00 a.m.
100 F Street NE., Washington, DC 20549 Statutory Basis for, the Proposed Rule
Change Eastern Time discussed above, the
or send an email to: PRA_Mailbox@ Exchange does not propose to amend
sec.gov. Comments must be submitted to In its filing with the Commission, the the substance or operation of Rule
OMB within 30 days of this notice.
Exchange included statements 11.1(a).
Dated: September 3, 2015. concerning the purpose of and basis for As amended, orders entered between
Robert W. Errett, the proposed rule change and discussed 6:00 a.m. and 7:00 a.m. Eastern Time,
Deputy Secretary. any comments it received on the rather than 6:00 a.m. and 8:00 a.m.
[FR Doc. 2015–22753 Filed 9–9–15; 8:45 am] proposed rule change. The text of these Eastern Time, would not eligible for
BILLING CODE 8011–01–P
statements may be examined at the execution until the start of the Pre-
places specified in Item IV below. The Opening Session or Regular Trading
Exchange has prepared summaries, set Hours,5 depending on the Time-in-Force
SECURITIES AND EXCHANGE forth in Sections A, B, and C below, of
COMMISSION the most significant parts of such 4 The Exchange notes that NYSE Arca, Inc.
statements. (‘‘NYSE Arca’’) operates an Opening Session that
starts at 4:00 a.m. Eastern Time (1:00 a.m. Pacific
[Release No. 34–75831; File No. SR–BYX– Time) and ends at 9:30 a.m. Eastern Time (6:30 a.m.
1 15 U.S.C. 78s(b)(1).
2015–38] Pacific Time). See NYSE Arca Rule 7.34(a)(1). The
2 17 CFR 240.19b–4. Nasdaq Stock Market LLC (‘‘Nasdaq’’) operates a
3 The term ‘‘Member’’ is defined as ‘‘any
Self-Regulatory Organizations; BATS pre-market session that also opens at 4:00 a.m. and
Y–Exchange, Inc.; Notice of Filing of registered broker or dealer that has been admitted ends at 9:30 a.m. Eastern Time. See Nasdaq Rule
mstockstill on DSK4VPTVN1PROD with NOTICES
to membership in the Exchange. A Member will 4701(g). See also Securities Exchange Act Release
Proposed Rule Change To Amend have the status of a ‘‘member’’ of the Exchange as No. 69151 (March 15, 2013), 78 FR 17464 (March
Rules 1.5(r) and 11.1 and Adopt New that term is defined in Section 3(a)(3) of the Act. 21, 2013) (SR–Nasdaq–2013–033) (Notice of Filing
Rule 11.1(a)(1) Membership may be granted to a sole proprietor, and Immediate Effectiveness of Proposed Rule
partnership, corporation, limited liability company Change to Extend the Pre-Market Hours of the
September 3, 2015. or other organization which is a registered broker Exchange to 4:00 a.m. EST).
or dealer pursuant to Section 15 of the Act, and 5 ‘‘Regular Trading Hours’’ is defined as ‘‘the time
Pursuant to Section 19(b)(1) of the which has been approved by the Exchange.’’ See between 9:30 a.m. and 4:00 p.m. Eastern Time.’’ See
Securities Exchange Act of 1934 (the Exchange Rule 1.5(n). Exchange Rule 1.5(w).
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open market and a national market promotes just and equitable principles Orders. BATS Market Orders and orders
system. of trade, and removes impediments to with a TIF instruction of IOC and FOK
and perfects the mechanism of a free are immediately executable once placed
Pre-Opening Session 7:00 a.m. Start
and open market and a national market on the BATS Book. Permitting the use
The Exchange believes its proposal to system. The Exchange believes that the of an Effective Start time with such
amend Rule 1.5(r) to state that the Pre- proposed Effective Start Time orders appears inconsistent as a User
Opening Session will start at 7:00 a.m. instruction will provide Users with will not know at the time of order entry
rather than 8:00 a.m. Eastern Time and greater control over their orders by what the market for such a security
Rule 11.1(a) to account for the Pre- electing a specific time upon which would be at the selected Effective Start
Opening Session starting at 7:00 a.m. their order may become eligible for Time.
Eastern Time promote just and equitable execution. The concept of selecting
principles of trade, and to remove conditions during which an order it [sic] B. Self-Regulatory Organization’s
impediments to and perfect the to be eligible for execution is not novel. Statement on Burden on Competition
mechanism of a free and open market The operation of the Effective Start The Exchange believes its proposed
and a national market system. The Time instruction is similar to rule change would not impose any
Exchange believes that opening its functionality available on the Exchange burden on competition that is not
system at 7:00 a.m. will benefit and elsewhere that permits members to necessary or appropriate in furtherance
investors, the national market system, elect when their orders are to become of the purposes of the Act. The
Members and the Exchange market. eligible for executions. Specifically, on Exchange believes the proposal to start
Opening at 7:00 a.m. will benefit the Exchange, a User may elect a buy the Pre-Opening Session at 7:00 a.m.
investors and the national market (sell) Stop Order or Stop Limit Order Eastern Time would enhance
system by increasing competition for indicating that the order become eligible competition by enabling the Exchange
order flow and executions, and thereby for execution when the consolidated last to directly compete with NYSE Arca
spurring product enhancements and sale (purchase) in a security occurs at or and Nasdaq for order flow and
lowering prices. Opening at 7:00 a.m. above (below) a specified Stop Price.20 executions starting at 7:00 a.m., rather
will benefit Members and the Exchange In addition, a User may elect the trading than 8:00 a.m. In addition, the proposed
market by increasing trading session(s) during which their order Effective Start Time instruction will
opportunities between 7:00 a.m. and would be eligible for execution. In such enable the Exchange to provide similar
8:00 a.m. without increasing ancillary case, the User may enter an order during functionality as NYSE Arca. The fact
trading costs (telecommunications, data, the Pre-Opening Session and select that that the extending the Pre-Opening
connectivity, etc.) and, thereby, such order not be eligible for execution Session and Effective Start Time are
decreasing average trading costs per until 9:30 a.m., the start of Regular themselves a response to the
share. Opening the Exchange at 7:00 Trading Hours. Conversely, Members competition provided by other markets
a.m. will also benefit Members that also maintain the ability to elect when is evidence of its pro-competitive
choose not to participate in the early their order should expire or be nature.
hours but nonetheless gain the cancelled. For example, a User may
opportunity to interact with liquidity elect a TIF instruction of Day, GTD, or C. Self-Regulatory Organization’s
entered by other members during the GTX, all which state that the order Statement on Comments on the
early session. cancelled if not executed by a certain Proposed Rule Change Received From
The proposed rule change promotes time.21 Lastly, similar functionality is Members, Participants, or Others
just and equitable principles of trade by currently available on NYSE Arca.22 The Exchange has not solicited, and
offering additional trading opportunities The Exchange believes it has does not intend to solicit, comments on
to Members that desire them, without appropriately limited the availability of this proposed rule change. The
imposing burdens on Members that do the Effective Start Time instruction to Exchange has not received any
not. The proposal will facilitate a well- exclude its use with order types and unsolicited written comments from
regulated, orderly, and efficient market order instructions that it may be deemed Members or other interested parties.
during a period of time that is currently inconsistent with. Specifically, the
underserved. The Exchange notes that Effective Time instruction is not III. Date of Effectiveness of the
the proposed trading period has been available for ISOs and the use of such Proposed Rule Change and Timing for
available on NYSE Arca and Nasdaq.19 an instruction may be considered Commission Action
The Exchange believes that the inconsistent with a Member’s Within 45 days of the date of
availability of trading between 7:00 a.m. responsibility to comply with the publication of this notice in the Federal
and 8:00 a.m. has been beneficial to requirements of Regulation NMS Register or within such longer period
market participants including investors relating to ISOs. In addition, the up to 90 days (i) as the Commission may
and issuers on other markets. The Effective Start Time instruction is not designate if it finds such longer period
Exchange believes that offering a available for BATS Market Orders or to be appropriate and publishes its
competing trading session will further orders with a TIF instruction of IOC or reasons for so finding or (ii) as to which
benefit investors by promoting FOK as well as orders with BATS Post the self-regulatory organization
competition and order interaction, Only Order or Minimum Quantity consents, the Commission will:
while imposing no added costs on (A) By order approve or disapprove
20 See Exchange Rules 11.9(c)(17) and (c)(18). See
investors or other market participants the proposed rule change, or
also New York Stock Exchange, Inc. (‘‘NYSE’’) Rule
mstockstill on DSK4VPTVN1PROD with NOTICES
that choose not avail themselves of 13(e)(7).
(B) institute proceedings to determine
these benefits. 21 See Exchange Rules 11.9(b)(2),(4), and (5). See whether the proposed rule change
also Nasdaq Rule 4703(a), and NYSE Rule 13(b). should be disapproved.
Effective Start Time 22 NYSE Arca permits the selection of an Effective
The Exchange believes its proposed Time (Tag 168), like the Exchange proposes herein, IV. Solicitation of Comments
and Expire Time (Tag 126). See NYSE Arca FIX Interested persons are invited to
Effective Start Time instruction also Specifications, available at https://www.nyse.com/
publicdocs/nyse/markets/nyse/FIX_Specification_ submit written data, views, and
19 See supra note 4. and_API.pdf (dated June 8, 2015). arguments concerning the foregoing,
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![54634 Federal Register / Vol. 80, No. 175 / Thursday, September 10, 2015 / Notices
including whether the proposed rule SECURITIES AND EXCHANGE or send an email to: PRA_Mailbox@
change is consistent with the Act. COMMISSION sec.gov. Comments must be submitted to
Comments may be submitted by any of OMB within 30 days of this notice.
the following methods: Submission for OMB Review; Dated: September 3, 2015.
Comment Request
Electronic Comments Robert W. Errett,
Upon Written Request, Copies Available Deputy Secretary.
• Use the Commission’s Internet From: Securities and Exchange [FR Doc. 2015–22754 Filed 9–9–15; 8:45 am]
comment form (http://www.sec.gov/ Commission, Office of FOIA Services, BILLING CODE 8011–01–P
rules/sro.shtml); or 100 F Street NE., Washington, DC
• Send an email to rule-comments@ 20549–2736.
sec.gov. Please include File Number SR– Extension: SECURITIES AND EXCHANGE
BYX–2015–38 on the subject line. Form ADV–E, OMB Control No. 3235– COMMISSION
0361, SEC File No. 270–318.
Paper Comments Proposed Collection; Comment
Notice is hereby given that, pursuant
Request
• Send paper comments in triplicate to the Paperwork Reduction Act of 1995
to Secretary, Securities and Exchange (44 U.S.C. 3501 et seq.), the Securities Upon Written Request Copies Available
Commission, 100 F Street NE., and Exchange Commission (the From: Securities and Exchange
Washington, DC 20549–1090. ‘‘Commission’’) has submitted to the Commission, Office of FOIA Services,
Office of Management and Budget a 100 F Street NE., Washington, DC
All submissions should refer to File request for extension of the previously 20549–2736.
Number SR–BYX–2015–38. This file approved collection of information
number should be included on the Extension:
discussed below.
subject line if email is used. To help the Form T–1, OMB Control No. 3235–0110,
Form ADV–E (17 CFR 2799.8) is the SEC File No. 270–121.
Commission process and review your cover sheet for certificates of accounting
comments more efficiently, please use filed pursuant to rule 206(4)–2 under Notice is hereby given that, pursuant
only one method. The Commission will the Investment Advisers Act of 1940 (17 to the Paperwork Reduction Act of 1995
post all comments on the Commission’s CFR 275.206(4)–2). The rule further (44 U.S.C. 3501 et seq.), the Securities
Internet Web site (http://www.sec.gov/ requires that the public accountant file and Exchange Commission
rules/sro.shtml). Copies of the with the Commission a Form ADV–E (‘‘Commission’’) is soliciting comments
submission, all subsequent and accompanying statement within on the collection of information
amendments, all written statements four business days of the resignation, summarized below. The Commission
with respect to the proposed rule dismissal, removal or other termination plans to submit this existing collection
change that are filed with the of its engagement. The annual burden is of information to the Office of
Commission, and all written approximately three minutes per Management and Budget for extension
communications relating to the respondent. and approval.
proposed rule change between the The estimate of burden hours set forth Form T–1 (17 CFR 269.1) is a
Commission and any person, other than above is made solely for the purposes of statement of eligibility and qualification
those that may be withheld from the the Paperwork Reduction Act and is not under the Trust Indenture Act of 1939
public in accordance with the derived from a comprehensive or even (15 U.S.C. 77aaa et seq.) of a corporation
provisions of 5 U.S.C. 552, will be representative survey or study of the designated to act as a trustee under an
available for Web site viewing and cost of Commission rules and forms. indenture. The information is used to
printing in the Commission’s Public The information provided on Form determine whether the corporation is
Reference Room, 100 F Street NE., ADV–E is mandatory. Responses will qualified to serve as a trustee. Form
Washington, DC 20549 on official not be kept confidential. An agency may T–1 takes approximately 15 hours per
business days between the hours of not conduct or sponsor a collection of response to prepare and is filed by
10:00 a.m. and 3:00 p.m. Copies of such information unless it displays a approximately 5 respondents. We
filing also will be available for currently valid OMB control number. estimate that 25% of the 15 hours (4
inspection and copying at the principal No person shall be subject to any hours per response) is prepared by the
office of the Exchange. All comments penalty for failing to comply with a company for a total reporting burden of
received will be posted without change; collection of information subject to the 20 hours (4 hours per response × 5
the Commission does not edit personal PRA that does not display a valid OMB responses).
identifying information from control number. Written comments are invited on: (a)
submissions. You should submit only The public may view the background Whether this proposed collection of
information that you wish to make documentation for this information information is necessary for the
available publicly. All submissions collection at the following Web site, performance of the functions of the
should refer to File Number SR–BYX– www.reginfo.gov. Comments should be agency, including whether the
2015–38, and should be submitted on or directed to: (i) Desk Officer for the information will have practical utility;
before October 1, 2015. Securities and Exchange Commission, (b) the accuracy of the agency’s estimate
Office of Information and Regulatory of the burden imposed by the collection
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
Affairs, Office of Management and of information; (c) ways to enhance the
mstockstill on DSK4VPTVN1PROD with NOTICES
authority.23 Budget, Room 10102, New Executive quality, utility, and clarity of the
Office Building, Washington, DC 20503, information collected; and (d) ways to
Robert W. Errett,
or by sending an email to: Shagufta_ minimize the burden of the collection of
Deputy Secretary. Ahmed@omb.eop.gov; and (ii) Pamela information on respondents, including
[FR Doc. 2015–22755 Filed 9–9–15; 8:45 am] Dyson, Director/Chief Information through the use of automated collection
BILLING CODE 8011–01–P Officer, Securities and Exchange techniques or other forms of information
Commission, c/o Remi Pavlik-Simon, technology. Consideration will be given
23 17 CFR 200.30–3(a)(12). 100 F Street NE., Washington, DC 20549 to comments and suggestions submitted
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Document Created: 2015-12-15 10:03:58
Document Modified: 2015-12-15 10:03:58
| 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 54631 |
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