80 FR 56508 - 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 181 (September 18, 2015)

Page Range		56508-56511
FR Document		2015-23399
Federal Register, Volume 80 Issue 181 (Friday, September 18, 2015)
[Federal Register Volume 80, Number 181 (Friday, September 18, 2015)]
[Notices]
[Pages 56508-56511]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-23399]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75915; File No. SR-BATS-2015-71]


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.

September 14, 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 2, 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).
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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 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 modify the ``Options Pricing'' section of 
its fee schedule effective immediately, in order to: (i) Modify pricing 
charged by the Exchange's options platform (``BATS Options'') including 
for orders routed away from the Exchange and executed at various away 
options exchanges; (ii) amend the thresholds related to meeting certain 
pricing tiers and to increase the rebate associated with such tiers; 
(iii) amend the fee for Customer \6\ orders that remove liquidity in 
Penny Pilot Securities; \7\ and (iv) make two non-substantive clean up 
changes.
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    \6\ ``Customer'' applies to any transaction identified by a 
Member for clearing in the Customer range at the OCC, excluding any 
transaction for a Broker Dealer or a ``Professional'' as defined in 
Exchange Rule 16.1.
    \7\ ``Penny Pilot Securities'' are those issues quoted pursuant 
to Exchange Rule 21.5, Interpretation and Policy .01.
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Routing Fees
    The Exchange currently charges the following rates for orders 
routed to certain other options exchanges: (i) Customer orders routed 
to C2 Options Exchange, Incorporated (``C2''), which yield the fee code 
2C, are charged $0.47 per contract; (ii) non-Customer orders routed to 
C2, which yield fee code 2F, are charged $0.95 per contract; (iii) 
Customer orders in Penny Pilot Securities routed to NYSE Arca, Inc. 
(``Arca''), which yield fee code AC, are charged $0.52 per contract; 
and (iv) Customer orders in Penny Pilot Securities routed to Nasdaq 
Options Market LLC (``NOM''), which yield fee code QC, are charged 
$0.52 per contract. In an effort to continue to offer routing services 
to its Members at prices that approximate the cost to the Exchange, 
BATS Options is proposing to amend those rates as follows: (i) The fee 
for Customer orders routed to C2 and any Customer orders in Penny Pilot 
Securities routed to Arca or NOM (fee codes 2C, AC, and QC, 
respectively) would be increased to $0.70 per contract; and (ii) the 
fee for non-Customer orders routed to C2 (fee code 2F) would be reduced 
to $0.72 per contract.

[[Page 56509]]

    As noted previously and as set forth above, the Exchange's current 
approach to routing fees is to set forth in a simple manner certain 
sub-categories of fees that approximate the cost of routing to other 
options exchanges based on the cost of transaction fees assessed by 
each venue as well as costs to the Exchange for routing (i.e., clearing 
fees, connectivity and other infrastructure costs, membership fees, 
etc.) (collectively, ``Routing Costs''). The Exchange then monitors the 
fees charged as compared to the costs of its routing services and 
adjusts its routing fees and/or sub-categories to ensure that the 
Exchange's fees do indeed result in a rough approximation of overall 
Routing Costs, and are not significantly higher or lower in any area. 
In performing this analysis, the Exchange has concluded that certain 
orders that it was routing to other options exchanges were costing more 
than it was charging, and in one case, were significantly less than it 
was charging. As a result, and in order to avoid subsidizing routing to 
away options exchanges and to continue providing quality routing 
services, the Exchange proposes relatively modest increases and 
adjustments to the charges assessed for the orders described above.
Tier Thresholds and Associated Rebate
    The Exchange currently offers enhanced rebates under both the Firm, 
Broker Dealer, and Joint Back Office Penny Pilot Add Volume Tiers 
(which apply to fee code PF) and the Market Maker and Non-BATS Market 
Maker Penny Pilot Add Volume Tiers (which apply to fee code PM) to 
Members with trading activity on BATS Options that meets certain 
thresholds. More specifically, in Tier 3 of each of these sets of 
tiers, BATS Options offers enhanced rebates to orders that yield fee 
code PF and PM ($0.43 and $0.42, respectively) for Members that: (i) 
Have an ADAV \8\ in Firm,\9\ Broker Dealer,\10\ and Joint Back Office 
\11\ orders in Penny Pilot Securities (yielding Fee Code PF) equal to 
or greater than 0.35% of average TCV; and (ii) have an ADV \12\ equal 
to or greater than 1.00% of average TCV.\13\ The Exchange is proposing 
to amend the numerical thresholds associated with meeting these tiers 
by lowering the threshold for requirement (i) from 0.35% to 0.25% and 
increasing the threshold for requirement (ii) from 1.00% to 1.50%. 
Specifically, the Exchange is proposing that an order yielding fee code 
PF or PM will meet Tier 3 of the respective tiers where: (i) The Member 
has an ADAV in Firm, Broker Dealer, and Joint Back Office orders in 
Penny Pilot Securities (yielding Fee Code PF) equal to or greater than 
0.25% of average TCV; and (ii) the Member has an ADV equal to or 
greater than 1.50% of average TCV. The Exchange is also proposing to 
increase the rebates for meeting these tiers to $0.47 per contract for 
fee code PF and PM, from $0.43 and $0.42 per contract, respectively.
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    \8\ ``ADAV'' means average daily added volume calculated as the 
number of contracts per day.
    \9\ ``Firm'' applies to any transaction identified by a Member 
for clearing in the Firm range at the Options Clearing Corporation 
(``OCC''), excluding any Joint Back office transaction.
    \10\ ``Broker Dealer'' applies to any order for the account of a 
broker dealer, including a foreign broker dealer, that clears in the 
Customer range at the OCC.
    \11\ ``Joint Back Office'' applies to any transaction identified 
by a Member for clearing in the Firm Range at the OCC that is 
identified with an origin code as Joint Back Office. A Joint Back 
Office participant is a Member that maintains a Joint Back Office 
arrangement with a clearing broker-dealer.
    \12\ ``ADV'' means average daily volume calculated as the number 
of contracts added or removed, combined, per day.
    \13\ ``TCV'' means total consolidated volume calculated as the 
volume reported by all exchanges to the 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 and on any day with a scheduled early market close.
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Customer Orders in Non-Penny Pilot Securities
    The Exchange currently charges $0.80 per contract for Customer 
orders that remove liquidity in non-Penny Pilot Securities. The 
Exchange is proposing to increase the fee to $0.84 per contract. The 
Exchange notes that the proposed fee is lower than the fees charged on 
NOM for removing liquidity in non-Penny Pilot Securities ($0.85 per 
contract) and is generally in line with the pricing at other options 
exchanges.
Clean Up Changes
    Finally, the Exchange is also proposing to make two non-substantive 
clean up changes to its fee schedule. Specifically, the Exchange is 
proposing to capitalize the ``O'' in ``Joint Back office'' as it 
appears in the definition for ``Firm'' and to add a bullet in front of 
the definition of ``Penny Pilot Securities'' in order to make the 
formatting consistent with that of the other definitions in the fee 
schedule.
Implementation Date
    The Exchange proposes to implement these amendments to its Fee 
Schedule effectively immediately.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder that are applicable to a national securities exchange, and, 
in particular, with the requirements of Section 6 of the Act.\14\ 
Specifically, the Exchange believes that the proposed rule change is 
consistent with Section 6(b)(4) of the Act,\15\ in that it provides for 
the equitable allocation of reasonable dues, fees and other charges 
among members and other persons using any facility or system which the 
Exchange operates or controls. The Exchange notes that it operates in a 
highly competitive market in which market participants can readily 
direct order flow to competing venues or providers of routing services 
if they deem fee levels to be excessive.
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    \14\ 15 U.S.C. 78f.
    \15\ 15 U.S.C. 78f(b)(4).
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    As explained above, the Exchange generally attempts to approximate 
the cost of routing to other options exchanges, including other 
applicable costs to the Exchange for routing. The Exchange believes 
that a pricing model based on approximate Routing Costs is a 
reasonable, fair and equitable approach to pricing. Specifically, the 
Exchange believes that its proposal to modify fees is fair, equitable 
and reasonable because the fees are generally an approximation of the 
cost to the Exchange for routing orders to such exchanges and the 
Exchange has concluded that certain orders that it was routing to other 
options exchanges were costing more than it was charging, and in one 
case, were costing significantly less than it was charging. Further to 
this point, the Exchange notes that it is proposing to decrease fees 
for non-Customer orders routed to C2. Accordingly, the Exchange 
believes that the proposed increases are fair, equitable and reasonable 
because they will help the Exchange to avoid subsidizing routing to 
away options exchanges and to continue providing quality routing 
services. The Exchange believes that its fee structure for orders 
routed to various venues is a fair and equitable approach to pricing, 
as it provides certainty with respect to execution fees at away options 
exchanges. Under its straightforward fee structure, taking all costs to 
the Exchange into account, the Exchange may operate at a slight gain or 
slight loss for orders routed to and executed at away options 
exchanges. As a general matter, the Exchange believes that the proposed 
fees will allow it to recoup and cover its costs of providing routing 
services to such exchanges. The Exchange notes that routing through the 
Exchange is voluntary. The Exchange

[[Page 56510]]

also believes that the proposed fee structure for orders routed to and 
executed at these away options exchanges is fair and equitable and not 
unreasonably discriminatory in that it applies equally to all Members.
    The Exchange reiterates 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 to be excessive or providers 
of routing services if they deem fee levels to be excessive. Finally, 
the Exchange notes that it constantly evaluates its routing fees, 
including profit and loss attributable to routing, as applicable, in 
connection with the operation of a flat fee routing service, and would 
consider future adjustments to the proposed pricing structure to the 
extent it was recouping a significant profit or loss from routing to 
away options exchanges.
    The Exchange also believes that the proposed amendments to the fee 
schedule related to the thresholds required to meet Tier 3 of both the 
Firm, Broker Dealer, and Joint Back Office Penny Pilot Add Volume Tiers 
and the Market Maker and Non-BATS Market Maker Penny Pilot Add Volume 
Tiers and the increased rebate of $0.47 per contract for achieving such 
tiers is a reasonable, fair and equitable, and not unfairly 
discriminatory allocation of fees and rebates because it will encourage 
greater participation on BATS Options, which, as described above the 
Exchange believes will result in higher levels of liquidity provision 
and introduction of higher volumes of orders into the price and volume 
discovery processes, which will benefit all participants on BATS 
Options. Specifically, the Exchange believes that the reduction in the 
threshold for a Member's ADAV in Penny Pilot Securities that yield fee 
code PF from 0.35% of average TCV and the increased threshold for a 
Member's ADV of average TCV from 1.00% to 1.50% combined with the 
increased rebate for meeting the thresholds is a reasonable, fair and 
equitable, and not unfairly discriminatory allocation of fees and 
rebates because, in conjunction, they will provide Members with a 
reasonably achievable threshold for receiving a greater rebate than 
they do today while simultaneously encouraging and rewarding higher 
levels of participation on the Exchange. By lowering the requirement 
for Firm, Broker Dealer, and Joint Back Office orders in Penny Pilot 
securities, increasing the requirement for ADV as a percentage of TCV, 
and increasing the rebate for achieving such tiers, the proposed 
amendment will encourage greater general participation on the Exchange, 
which will result in higher levels of liquidity provision and 
introduction of higher volumes of orders into the price and volume 
discovery processes, which will benefit all participants on BATS 
Options.
    The Exchange believes the proposed increase of the standard fees 
for Customer orders that remove liquidity in non-Penny Pilot Securities 
(from $0.80 per contract to $0.84 per contract) is a reasonable, fair 
and equitable, and not unfairly discriminatory allocation of fees and 
rebates because the additional revenue generated through the increased 
fees will allow the Exchange to continue to offer competitive pricing 
and incentives for other types of orders, which will result in better 
market quality for all participants. Further, as noted above, the 
proposed standard fee is still lower than the standard fee offered by 
NOM for of $0.85 per contract.
    The Exchange also believes that the proposed non-substantive 
changes to the definition of Firm and adding of the bullet to 
definition of Penny Pilot Securities are reasonable, fair, and 
equitable because they are designed to make the fee schedule easier to 
read and understand. The Exchange notes that neither of the proposed 
changes are designed to amend any fee or rebate, nor alter the manner 
in which the Exchange assess fees and rebates. These non-substantive 
changes to the fee schedule are intended to make the fee schedule 
clearer and less confusing for investors and eliminate potential 
investor confusion, thereby removing impediments to and perfecting the 
mechanism of a free and open market and a national market system, and, 
in general, protecting investors and the public interest.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. As it relates to the proposed 
changes to routing fees, the proposed changes will assist the Exchange 
in recouping costs for routing orders to other options exchanges on 
behalf of its participants in a manner that is a better approximation 
of actual costs than is currently in place and that reflects pricing 
changes by various options exchanges as well as increases to other 
Routing Costs incurred by the Exchange. The Exchange also notes that 
Members may choose to mark their orders as ineligible for routing to 
avoid incurring routing fees.\16\
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    \16\ See BATS Rule 21.1(d)(8) (describing ``BATS Only'' orders 
for BATS Options) and BATS Rule 21.9(a)(1) (describing the BATS 
Options routing process, which requires orders to be designated as 
available for routing).
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    With respect to the proposed changes to the thresholds in the Firm, 
Broker Dealer, and Joint Back Office Penny Pilot Add Volume Tiers and 
the Market Maker and Non-BATS Market Maker Penny Pilot Add Volume Tiers 
and the increased rebates associated therewith, the Exchange does not 
believe that any such changes burden competition, but instead, that 
they enhance competition as they are intended to increase the 
competitiveness of and draw additional volume to BATS Options.
    Finally, with respect to the change in fees for Customer orders 
that remove liquidity in non-Penny Pilot Securities, the Exchange does 
not believe that such change burdens competition, but instead, that it 
enhances competition as the proposed new pricing remains generally in 
line with that of other options exchanges and would still be lower than 
the per contract fee for an identical transaction that occurred on NOM.
    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 they deem fee levels to be excessive 
or providers of routing services if they deem routing fee levels to be 
excessive.

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 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 \17\ and paragraph (f)(2) of Rule 19b-4 
thereunder.\18\ At any time within 60 days of the filing of the 
proposed rule change, the Commission summarily may temporarily suspend 
such rule change if it appears to the Commission that such action is 
necessary or appropriate in the public interest, for the protection of 
investors, or otherwise in furtherance of the purposes of the Act. If 
the

[[Page 56511]]

Commission takes such action, the Commission shall institute 
proceedings to determine whether the proposed rule should be approved 
or disapproved.
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    \17\ 15 U.S.C. 78s(b)(3)(A).
    \18\ 17 CFR 240.19b-4(f)(2).
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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-2015-71 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-2015-71. 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 Number SR-BATS-2015-71 and should be 
submitted on or before October 9, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\19\
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    \19\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-23399 Filed 9-17-15; 8:45 am]
BILLING CODE 8011-01-P
56508 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Notices

contravention of such rules and SECURITIES AND EXCHANGE statements may be examined at the
regulations as the Commission has COMMISSION places specified in Item IV below. The
prescribed as necessary or appropriate Exchange has prepared summaries, set
[Release No. 34–75915; File No. SR–BATS–
in the public interest or for the 2015–71]
forth in Sections A, B, and C below, of
protection of investors. The Commission the most significant parts of such
has promulgated Regulation 14A to Self-Regulatory Organizations; BATS statements.
regulate the solicitation of proxies or Exchange, Inc.; Notice of Filing and A. Self-Regulatory Organization’s
consents. Regulation 14A (Exchange Act Immediate Effectiveness of a Proposed Statement of the Purpose of, and
Rules 14a–1 through 14a–21 and Rule Change Related to Fees for Use Statutory Basis for, the Proposed Rule
Schedule 14A) (17 CFR 240.14a–1 of BATS Exchange, Inc. Change
through 240.14a–21 and 240.14a–101) September 14, 2015.
sets forth the requirements for the 1. Purpose
Pursuant to Section 19(b)(1) of the
dissemination, content and filing of Securities Exchange Act of 1934 (the The Exchange proposes to modify the
proxy or consent solicitation materials ‘‘Act’’),1 and Rule 19b–4 thereunder,2 ‘‘Options Pricing’’ section of its fee
in connection with annual or other notice is hereby given that on schedule effective immediately, in order
meetings of holders of a Section 12- September 2, 2015, BATS Exchange, to: (i) Modify pricing charged by the
registered class of securities. We Inc. (the ‘‘Exchange’’ or ‘‘BATS’’) filed Exchange’s options platform (‘‘BATS
estimate that Schedule 14A takes with the Securities and Exchange Options’’) including for orders routed
approximately 130.52 hours per Commission (‘‘Commission’’) the away from the Exchange and executed
response and will be filed by proposed rule change as described in at various away options exchanges; (ii)
approximately 5,586 issuers annually. Items I, II and III below, which Items amend the thresholds related to meeting
In addition, we estimate that 75% of the have been prepared by the Exchange. certain pricing tiers and to increase the
130.52 hours per response (97.89 hours) The Exchange has designated the rebate associated with such tiers; (iii)
proposed rule change as one amend the fee for Customer 6 orders that
is prepared by the issuer for an annual
establishing or changing a member due, remove liquidity in Penny Pilot
reporting burden of 546,814 hours
fee, or other charge imposed by the Securities; 7 and (iv) make two non-
(97.89 hours per response × 5,586 substantive clean up changes.
responses). Exchange under Section 19(b)(3)(A)(ii)
of the Act 3 and Rule 19b–4(f)(2) Routing Fees
An agency may not conduct or thereunder,4 which renders the
sponsor, and a person is not required to proposed rule change effective upon The Exchange currently charges the
respond to, a collection of information filing with the Commission. The following rates for orders routed to
unless it displays a currently valid Commission is publishing this notice to certain other options exchanges: (i)
control number. solicit comments on the proposed rule Customer orders routed to C2 Options
change from interested persons. Exchange, Incorporated (‘‘C2’’), which
The public may view the background
yield the fee code 2C, are charged $0.47
documentation for this information I. Self-Regulatory Organization’s per contract; (ii) non-Customer orders
collection at the following Web site, Statement of the Terms of Substance of routed to C2, which yield fee code 2F,
www.reginfo.gov. Comments should be the Proposed Rule Change are charged $0.95 per contract; (iii)
directed to: (i) Desk Officer for the Customer orders in Penny Pilot
The Exchange filed a proposal to
Securities and Exchange Commission, Securities routed to NYSE Arca, Inc.
amend the fee schedule applicable to
Office of Information and Regulatory Members 5 and non-members of the (‘‘Arca’’), which yield fee code AC, are
Affairs, Office of Management and Exchange pursuant to BATS Rules charged $0.52 per contract; and (iv)
Budget, Room 10102, New Executive 15.1(a) and (c). Customer orders in Penny Pilot
Office Building, Washington, DC 20503, The text of the proposed rule change Securities routed to Nasdaq Options
or by sending an email to: Shagufta_ is available at the Exchange’s Web site Market LLC (‘‘NOM’’), which yield fee
Ahmed@omb.eop.gov; and (ii) Pamela at www.batstrading.com, at the code QC, are charged $0.52 per contract.
Dyson, Director/Chief Information principal office of the Exchange, and at In an effort to continue to offer routing
Officer, Securities and Exchange the Commission’s Public Reference services to its Members at prices that
Commission, c/o Remi Pavlik-Simon, Room. approximate the cost to the Exchange,
100 F Street NE., Washington, DC 20549 BATS Options is proposing to amend
II. Self-Regulatory Organization’s
or send an email to: PRA_Mailbox@ those rates as follows: (i) The fee for
Statement of the Purpose of, and
sec.gov. Comments must be submitted to Customer orders routed to C2 and any
Statutory Basis for, the Proposed Rule
OMB within 30 days of this notice. Customer orders in Penny Pilot
Change
Securities routed to Arca or NOM (fee
Dated: September 15, 2015. In its filing with the Commission, the codes 2C, AC, and QC, respectively)
Brent J. Fields, Exchange included statements would be increased to $0.70 per
Secretary. concerning the purpose of and basis for contract; and (ii) the fee for non-
[FR Doc. 2015–23466 Filed 9–17–15; 8:45 am] the proposed rule change and discussed Customer orders routed to C2 (fee code
BILLING CODE 8011–01–P
any comments it received on the 2F) would be reduced to $0.72 per
proposed rule change. The text of these contract.
tkelley on DSK3SPTVN1PROD with NOTICES

1 15 U.S.C. 78s(b)(1). 6 ‘‘Customer’’ applies to any transaction identified
2 17 CFR 240.19b–4. by a Member for clearing in the Customer range at
3 15 U.S.C. 78s(b)(3)(A)(ii).
the OCC, excluding any transaction for a Broker
4 17 CFR 240.19b–4(f)(2). Dealer or a ‘‘Professional’’ as defined in Exchange
5 The term ‘‘Member’’ is defined as ‘‘any Rule 16.1.
registered broker or dealer that has been admitted 7 ‘‘Penny Pilot Securities’’ are those issues quoted

to membership in the Exchange.’’ See Exchange pursuant to Exchange Rule 21.5, Interpretation and
Rule 1.5(n). Policy .01.

VerDate Sep<11>2014 18:47 Sep 17, 2015 Jkt 235001 PO 00000 Frm 00072 Fmt 4703 Sfmt 4703 E:\FR\FM\18SEN1.SGM 18SEN1
Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Notices 56511

Commission takes such action, the For the Commission, by the Division of II. Self-Regulatory Organization’s
Commission shall institute proceedings Trading and Markets, pursuant to delegated Statement of the Purpose of, and
to determine whether the proposed rule authority.19 Statutory Basis for, the Proposed Rule
should be approved or disapproved. Brent J. Fields, Change
IV. Solicitation of Comments Secretary. In its filing with the Commission, the
[FR Doc. 2015–23399 Filed 9–17–15; 8:45 am] Exchange included statements
Interested persons are invited to BILLING CODE 8011–01–P concerning the purpose of and basis for
submit written data, views and the proposed rule change and discussed
arguments concerning the foregoing, any comments it received on the
including whether the proposed rule SECURITIES AND EXCHANGE proposed rule change. The text of these
change is consistent with the Act. COMMISSION statements may be examined at the
Comments may be submitted by any of places specified in Item IV below. The
the following methods: [Release No. 34–75910; File No. SR– Exchange has prepared summaries, set
NASDAQ–2015–102] forth in sections A, B, and C below, of
Electronic Comments the most significant aspects of such
• Use the Commission’s Internet Self-Regulatory Organizations; The statements.
comment form (http://www.sec.gov/ NASDAQ Stock Market LLC; Notice of A. Self-Regulatory Organization’s
rules/sro.shtml); or Filing and Immediate Effectiveness of Statement of the Purpose of, and
• Send an email to rule-comments@ Proposed Rule Change To Amend Statutory Basis for, the Proposed Rule
sec.gov. Please include File Number SR– Transaction Fees at Chapter XV, Change
BATS–2015–71 on the subject line. Section 2 Entitled ‘‘NASDAQ Options
Market—Fees and Rebates’’ 1. Purpose
Paper Comments The Exchange proposes the following
September 14, 2015. five [sic] changes to the NOM
• Send paper comments in triplicate Pursuant to Section 19(b)(1) of the transaction fees set forth at Chapter XV,
to Secretary, Securities and Exchange Securities Exchange Act of 1934 Section 2 for executing and routing
Commission, 100 F Street NE., (‘‘Act’’),1 and Rule 19b–4 thereunder,2 standardized equity and index options
Washington, DC 20549–1090. notice is hereby given that on under the Penny Pilot options program.
All submissions should refer to File September 1, 2015, The NASDAQ Stock The Penny Pilot was established in
Number SR–BATS–2015–71. This file Market LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) March 2008 and has since been
number should be included on the filed with the Securities and Exchange expanded and extended through June
subject line if email is used. To help the Commission (‘‘SEC’’ or ‘‘Commission’’) 30, 2016.3
Commission process and review your the proposed rule change as described
3 See Securities Exchange Act Release Nos. 57579
comments more efficiently, please use in Items I, II, and III, below, which Items
(March 28, 2008), 73 FR 18587 (April 4, 2008) (SR–
only one method. The Commission will have been prepared by the Exchange. NASDAQ–2008–026) (notice of filing and
post all comments on the Commission’s The Commission is publishing this immediate effectiveness establishing Penny Pilot);
Internet Web site (http://www.sec.gov/ notice to solicit comments on the 60874 (October 23, 2009), 74 FR 56682 (November
2, 2009) (SR–NASDAQ–2009–091) (notice of filing
rules/sro.shtml). Copies of the proposed rule change from interested and immediate effectiveness expanding and
submission, all subsequent persons. extending Penny Pilot); 60965 (November 9, 2009),
amendments, all written statements 74 FR 59292 (November 17, 2009) (SR–NASDAQ–
with respect to the proposed rule I. Self-Regulatory Organization’s 2009–097) (notice of filing and immediate
change that are filed with the Statement of the Terms of Substance of effectiveness adding seventy-five classes to Penny
the Proposed Rule Change Pilot); 61455 (February 1, 2010), 75 FR 6239
Commission, and all written (February 8, 2010) (SR–NASDAQ–2010–013)
communications relating to the The Exchange proposes to amend (notice of filing and immediate effectiveness adding
proposed rule change between the seventy-five classes to Penny Pilot); 62029 (May 4,
transaction fees at Chapter XV, Section 2010), 75 FR 25895 (May 10, 2010) (SR–NASDAQ–
Commission and any person, other than 2 entitled ‘‘NASDAQ Options Market— 2010–053) (notice of filing and immediate
those that may be withheld from the Fees and Rebates,’’ which governs effectiveness adding seventy-five classes to Penny
public in accordance with the pricing for NASDAQ members using the
Pilot); 65969 (December 15, 2011), 76 FR 79268
provisions of 5 U.S.C. 552, will be (December 21, 2011) (SR–NASDAQ–2011–169)
NASDAQ Options Market (‘‘NOM’’), (notice of filing and immediate effectiveness
available for Web site viewing and
NASDAQ’s facility for executing and extension and replacement of Penny Pilot); 67325
printing in the Commission’s Public (June 29, 2012), 77 FR 40127 (July 6, 2012) (SR–
routing standardized equity and index
Reference Room, 100 F Street NE., NASDAQ–2012–075) (notice of filing and
options. immediate effectiveness and extension and
Washington, DC 20549, on official
While these amendments are effective replacement of Penny Pilot through December 31,
business days between the hours of 2012); 68519 (December 21, 2012), 78 FR 136
10:00 a.m. and 3:00 p.m. Copies of such upon filing, the Exchange has (January 2, 2013) (SR–NASDAQ–2012–143) (notice
filing will also be available for designated the proposed amendments to of filing and immediate effectiveness and extension
inspection and copying at the principal be operative on September 1, 2015. and replacement of Penny Pilot through June 30,
2013); 69787 (June 18, 2013), 78 FR 37858 (June 24,
office of the Exchange. All comments The text of the proposed rule change 2013) (SR–NASDAQ–2013–082) (notice of filing
received will be posted without change; is available on the Exchange’s Web site and immediate effectiveness and extension and
the Commission does not edit personal at http://nasdaq.cchwallstreet.com, at replacement of Penny Pilot through December 31,
identifying information from 2013); 71105 (December 17, 2013), 78 FR 77530
tkelley on DSK3SPTVN1PROD with NOTICES

the principal office of the Exchange, and (December 23, 2013) (SR–NASDAQ–2013–154)
submissions. You should submit only at the Commission’s Public Reference (notice of filing and immediate effectiveness and
information that you wish to make Room. extension and replacement of Penny Pilot through
available publicly. All submissions June 30, 2014); 79 FR 31151 (May 23, 2014), 79 FR
should refer to File Number SR–BATS– 31151 (May 30, 2014) (SR–NASDAQ–2014–056)
19 17 CFR 200.30–3(a)(12). (notice of filing and immediate effectiveness and
2015–71 and should be submitted on or 1 15 U.S.C. 78s(b)(1). extension and replacement of Penny Pilot through
before October 9, 2015. 2 17 CFR 240.19b–4. Continued

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Document Created: 2015-12-15 09:28:15
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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 56508