80 FR 61853 - Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 3.13 (Payment Designed To Influence Market Prices, Other than Paid Advertising)
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 198 (October 14, 2015)
Federal Register Volume 80, Issue 198 (October 14, 2015)
| Page Range | 61853-61855 | |
| FR Document | 2015-26026 |
[Federal Register Volume 80, Number 198 (Wednesday, October 14, 2015)] [Notices] [Pages 61853-61855] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-26026] [[Page 61853]] ======================================================================= ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76095; File No. SR-BYX-2015-41] Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 3.13 (Payment Designed To Influence Market Prices, Other than Paid Advertising) October 7, 2015. Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on September 23, 2015, BATS Y-Exchange, Inc. (``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 substantially 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 BYX Rule 3.13 to conform with: (i) Financial Industry Regulatory Authority, Inc. (``FINRA'') Rule 5230 for purposes of an agreement between the Exchange and FINRA pursuant to Rule 17d-2 under the Act \5\ and (ii) the rules of EDGA Exchange, Inc. (``EDGA'') and EDGX Exchange, Inc. (``EDGX'').\6\ 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. --------------------------------------------------------------------------- \5\ 17 CFR 240.17d-2. \6\ See EDGA Rule 3.13 and EDGX Rule 3.13. --------------------------------------------------------------------------- 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 Pursuant to Rule 17d-2 under the Act,\7\ the Exchange and FINRA entered into an agreement to allocate regulatory responsibility for common rules (``17d-2 Agreement''). The 17d-2 Agreement covers common members of the Exchange and FINRA (``Common Members'') and allocates to FINRA regulatory responsibility, with respect to Common Members, for the following: (i) Examination of Common Members for compliance with federal securities laws, rules and regulations and Exchange rules that the Exchange has certified as identical or substantially similar to FINRA rules; (ii) investigation of Common Members for violations of federal securities laws, rules or regulations, and Exchange rules that the Exchange has certified as identical or substantially identical to FINRA rules; and (iii) enforcement of compliance by Common Members with the federal securities laws, rules and regulations, and Exchange rules that the Exchange has certified as identical or substantially similar to FINRA rules.\8\ --------------------------------------------------------------------------- \7\ 17 CFR 240.17d-2. \8\ See Exchange Release No. 62716 (Aug. 13, 2010), 75 FR 51295 (Aug. 19, 2010) (approving File No. 10-198). --------------------------------------------------------------------------- The 17d-2 Agreement included a certification by the Exchange that states that the requirements contained in certain Exchange rules are identical, or substantially similar, to certain FINRA rules that have been identified as comparable. Currently, Exchange Rule 3.13 is not fully incorporated into the 17d-2 Agreement as it does not include exceptions similar to FINRA Rule 5230. Therefore, to conform to comparable FINRA Rule 5230 for purposes of the 17d-2 Agreement, the Exchange proposes to amend Exchange Rule 3.13 to adopt rule text that is substantially similar to FINRA Rule 5230. Currently, Exchange Rule 3.13 (Payment Designed to Influence Market Prices, Other than Paid Advertising) states that ``[n]o Member shall directly or indirectly, give, permit to be given, or offer to give anything of value to any person for the purpose of influencing or rewarding the action of such person in connection with the publication or circulation in any newspaper, investment service or similar publication of any matter which has, or is intended to have, an effect upon the market price of any security; provided, that the Rule shall not be construed to apply to a matter which is clearly identifiable as paid advertising.'' First, the Exchange proposes to redesignate Rule 3.13 as ``Payments Involving Publications that Influence the Market Price of a Security''. This title would mirror that of FINRA Rule 5230. The Exchange also proposes to delete the text of Rule 3.13 in its entirety and replace it with rule text that is substantially similar to FINRA Rule 5230. As amended, paragraph (a) would continue to prohibit Exchange members from directly or indirectly, giving, permitting to be given, or offering to give anything of value to ``any person for the purpose of influencing or rewarding the action of such person in connection with the publication or circulation in any electronic or other public media, including any investment service or similar publication, Web site, newspaper, magazine or other periodical, radio, or television program of any matter that has, or is intended to have, an effect upon the market price of any security.'' This language is similar to current Rule 3.13. Proposed paragraph (b) would set forth exceptions to the prohibitions under paragraph (a). These exceptions would allow for compensation paid to a person in connection with the publication or circulation of: (i) A communication that is clearly distinguishable as paid advertising, like current Rule 3.13; (ii) a communication that discloses the receipt of compensation and the amount thereof in accordance with section 17(b) of the Securities Act of 1933; or (iii) a research report, as that term is defined in FINRA Rule 2241.\9\ Proposed paragraph (a) and the exceptions set forth under proposed paragraph (b) are substantially similar to FINRA Rule 5230.\10\ --------------------------------------------------------------------------- \9\ See FINRA Rule 2241(a)(9) for the definition of the term ``research report''. \10\ The only difference between the proposed text of Rule. 3.13 and FINRA Rule 5230 is that FINRA Rule 5230 references NASD Rule 2711 while proposed Rule 3.13 references FIRNA Rule 2241. This difference reflects the Commission's approval of a proposed rule change filed by FINRA that replaced NASD Rule 2711 with FINRA Rule 2241. See Exchange Act Release No. 75471 (July 16, 2015), 80 FR 43482 (July 22, 2015) (SR-FINRA-2014-047). --------------------------------------------------------------------------- The proposed rule text is also identical to EDGA Rule 3.13 and EDGX [[Page 61854]] Rule 3.13.\11\ In early 2014, the Exchange and its affiliate, BATS Exchange, Inc. (``BZX''), received approval to effect a merger (``Merger'') of the Exchange's parent company, BATS Global Markets, Inc., with Direct Edge Holdings LLC, the indirect parent of EDGX and EDGA (together with BZX and BYX, the ``BGM Affiliated Exchanges''). In the context of the Merger, the BGM Affiliated Exchanges are working to align their rules, retaining only intended differences between the BGM Affiliated Exchanges. Thus, the proposed text of Rule 3.13 is also identical to recent rule changes filed with the Commission by EDGA and EDGX to amend their identical rule text to that proposed herein. This proposed rule change would enable the Exchange to adopt rules that correspond to rules of EDGA and EDGX and provide a consistent rule set across each of the BGM Affiliated Exchanges.\12\ --------------------------------------------------------------------------- \11\ EDGA and EDGX have filed proposed rule changes with the Commission to replace references to NASD Rule 2711 in their respective Rules 3.13 with FINRA Rule 2241. See SR-EDGA-2015-38 and SR-EDGX-2015-43. See also supra note 10. \12\ BZX has filed an identical proposal with the Commission to amend its Rule 3.13. See SR-BATS-2015-77. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with section 6(b)(5) of the Act,\13\ which requires, among other things, that the Exchange's rules be 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 facilitating transactions in securities, and to remove impediments to and perfect the mechanism of a free and open market and a national market system. The Exchange believes that the proposed rule change would further these requirements by providing greater harmonization between Exchange and FINRA rules of similar purpose, resulting in greater uniformity and less burdensome and more efficient regulatory compliance. As such, the Exchange believes that the proposed rule change would foster cooperation and coordination with persons engaged in facilitating transactions in securities and would remove impediments to and perfect the mechanism of a free and open market and a national market system. --------------------------------------------------------------------------- \13\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- In addition, the Exchange believes that the proposed rule change would provide greater harmonization between rules of similar purpose on the BGM Affiliated Exchanges, resulting in greater uniformity and less burdensome and more efficient regulatory compliance and understanding of Exchange rules. As such, the Exchange believes that the proposed rule change would foster cooperation and coordination with persons engaged in facilitating transactions in securities and would remove impediments to and perfect the mechanism of a free and open market and a national market system. Similarly, the Exchange also believes that, by harmonizing the rules across each BGM Affiliated Exchange, the proposal would enhance the Exchange's ability to fairly and efficiently regulate its members, meaning that the proposed rule change is equitable and would promote fairness in the market place. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change would impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange believes that the proposed rule change is not designed to address any competitive issues but rather to provide greater harmonization among Exchange and FINRA rules of similar purpose, resulting in less burdensome and more efficient regulatory compliance for Common Members and facilitating FINRA's performance of its regulatory functions under the 17d-2 Agreement. In addition, the Exchange believes that allowing it to implement substantively identical rules across each of the BGM Affiliated Exchanges does not present any competitive issues, but rather is designed to provide greater harmonization among Exchange, BZX, EDGX, and EDGA rules of similar purpose. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others The Exchange has neither solicited nor received written comments on the proposal. 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 \14\ and Rule 19b-4(f)(6) thereunder.\15\ Because the proposed rule change does not: (i) significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) 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, the proposed rule change has become effective pursuant to section 19(b)(3)(A) of the Act and Rule 19b-4(f)(6) thereunder.\16\ --------------------------------------------------------------------------- \14\ 15 U.S.C. 78s(b)(3)(A). \15\ 17 CFR 240.19b-4. \16\ Rule 19b-4(f)(6) also requires that the Exchange give 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. The Exchange satisfied this requirement. --------------------------------------------------------------------------- At any time within 60 days of the filing of the proposed rule change, the Commission may summarily temporarily suspend the rule change if it appears to the Commission that such action is: (i) Necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) otherwise in furtherance of the purposes of the Act. If the Commission takes this action, the Commission shall institute proceedings under section 19(b)(2)(B) of the Act \17\ to determine whether the proposed rule should be approved or disapproved. --------------------------------------------------------------------------- \17\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- 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 rule-comments@sec.gov. Please include File No. SR-BYX-2015-41 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-2015-41. 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 [[Page 61855]] 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-2015-41 and should be submitted on or before November 4, 2015. --------------------------------------------------------------------------- \18\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\18\ Robert W. Errett, Deputy Secretary. [FR Doc. 2015-26026 Filed 10-13-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 198 / Wednesday, October 14, 2015 / Notices 61853
SECURITIES AND EXCHANGE any comments it received on the rewarding the action of such person in
COMMISSION proposed rule change. The text of these connection with the publication or
statements may be examined at the circulation in any newspaper,
[Release No. 34–76095; File No. SR–BYX–
places specified in Item IV below. The investment service or similar
2015–41]
Exchange has prepared summaries, set publication of any matter which has, or
Self-Regulatory Organizations; BATS forth in sections A, B, and C below, of is intended to have, an effect upon the
Y-Exchange, Inc.; Notice of Filing and the most significant parts of such market price of any security; provided,
Immediate Effectiveness of a Proposed statements. that the Rule shall not be construed to
Rule Change To Amend Rule 3.13 A. Self-Regulatory Organization’s apply to a matter which is clearly
(Payment Designed To Influence Statement of the Purpose of, and identifiable as paid advertising.’’
Market Prices, Other than Paid Statutory Basis for, the Proposed Rule First, the Exchange proposes to
Advertising) Change redesignate Rule 3.13 as ‘‘Payments
October 7, 2015. 1. Purpose Involving Publications that Influence
the Market Price of a Security’’. This
Pursuant to section 19(b)(1) of the Pursuant to Rule 17d–2 under the title would mirror that of FINRA Rule
Securities Exchange Act of 1934 Act,7 the Exchange and FINRA entered 5230. The Exchange also proposes to
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 into an agreement to allocate regulatory delete the text of Rule 3.13 in its
notice is hereby given that on responsibility for common rules (‘‘17d–
September 23, 2015, BATS Y-Exchange, entirety and replace it with rule text that
2 Agreement’’). The 17d–2 Agreement is substantially similar to FINRA Rule
Inc. (‘‘Exchange’’ or ‘‘BYX’’) filed with covers common members of the
the Securities and Exchange 5230. As amended, paragraph (a) would
Exchange and FINRA (‘‘Common continue to prohibit Exchange members
Commission (‘‘Commission’’) the Members’’) and allocates to FINRA
proposed rule change as described in from directly or indirectly, giving,
regulatory responsibility, with respect to
Items I and II below, which Items have permitting to be given, or offering to
Common Members, for the following: (i)
been substantially prepared by the give anything of value to ‘‘any person
Examination of Common Members for
Exchange. The Exchange has designated for the purpose of influencing or
compliance with federal securities laws,
this proposal as a ‘‘non-controversial’’ rewarding the action of such person in
rules and regulations and Exchange
proposed rule change pursuant to connection with the publication or
rules that the Exchange has certified as
section 19(b)(3)(A) of the Act 3 and Rule identical or substantially similar to circulation in any electronic or other
19b–4(f)(6)(iii) thereunder,4 which FINRA rules; (ii) investigation of public media, including any investment
renders it effective upon filing with the Common Members for violations of service or similar publication, Web site,
Commission. The Commission is federal securities laws, rules or newspaper, magazine or other
publishing this notice to solicit regulations, and Exchange rules that the periodical, radio, or television program
comments on the proposed rule change Exchange has certified as identical or of any matter that has, or is intended to
from interested persons. substantially identical to FINRA rules; have, an effect upon the market price of
and (iii) enforcement of compliance by any security.’’ This language is similar
I. Self-Regulatory Organization’s to current Rule 3.13. Proposed
Common Members with the federal
Statement of the Terms of Substance of paragraph (b) would set forth exceptions
securities laws, rules and regulations,
the Proposed Rule Change to the prohibitions under paragraph (a).
and Exchange rules that the Exchange
The Exchange filed a proposal to has certified as identical or substantially These exceptions would allow for
amend BYX Rule 3.13 to conform with: similar to FINRA rules.8 compensation paid to a person in
(i) Financial Industry Regulatory The 17d–2 Agreement included a connection with the publication or
Authority, Inc. (‘‘FINRA’’) Rule 5230 for certification by the Exchange that states circulation of: (i) A communication that
purposes of an agreement between the that the requirements contained in is clearly distinguishable as paid
Exchange and FINRA pursuant to Rule certain Exchange rules are identical, or advertising, like current Rule 3.13; (ii) a
17d–2 under the Act 5 and (ii) the rules substantially similar, to certain FINRA communication that discloses the
of EDGA Exchange, Inc. (‘‘EDGA’’) and rules that have been identified as receipt of compensation and the amount
EDGX Exchange, Inc. (‘‘EDGX’’).6 The comparable. Currently, Exchange Rule thereof in accordance with section 17(b)
text of the proposed rule change is 3.13 is not fully incorporated into the of the Securities Act of 1933; or (iii) a
available at the Exchange’s Web site at 17d–2 Agreement as it does not include research report, as that term is defined
www.batstrading.com, at the principal exceptions similar to FINRA Rule 5230. in FINRA Rule 2241.9 Proposed
office of the Exchange, and at the Therefore, to conform to comparable paragraph (a) and the exceptions set
Commission’s Public Reference Room. FINRA Rule 5230 for purposes of the forth under proposed paragraph (b) are
17d–2 Agreement, the Exchange substantially similar to FINRA Rule
II. Self-Regulatory Organization’s
proposes to amend Exchange Rule 3.13 5230.10
Statement of the Purpose of, and
to adopt rule text that is substantially The proposed rule text is also
Statutory Basis for, the Proposed Rule
similar to FINRA Rule 5230. identical to EDGA Rule 3.13 and EDGX
Change Currently, Exchange Rule 3.13
In its filing with the Commission, the (Payment Designed to Influence Market 9 See FINRA Rule 2241(a)(9) for the definition of
Exchange included statements Prices, Other than Paid Advertising) the term ‘‘research report’’.
concerning the purpose of, and basis for, states that ‘‘[n]o Member shall directly 10 The only difference between the proposed text
the proposed rule change and discussed or indirectly, give, permit to be given, or of Rule. 3.13 and FINRA Rule 5230 is that FINRA
tkelley on DSK3SPTVN1PROD with NOTICES
offer to give anything of value to any Rule 5230 references NASD Rule 2711 while
proposed Rule 3.13 references FIRNA Rule 2241.
1 15 U.S.C. 78s(b)(1). person for the purpose of influencing or This difference reflects the Commission’s approval
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
of a proposed rule change filed by FINRA that
7 17 CFR 240.17d–2. replaced NASD Rule 2711 with FINRA Rule 2241.
4 17 CFR 240.19b–4(f)(6)(iii). 8 See Exchange Release No. 62716 (Aug. 13, See Exchange Act Release No. 75471 (July 16,
5 17 CFR 240.17d–2.
2010), 75 FR 51295 (Aug. 19, 2010) (approving File 2015), 80 FR 43482 (July 22, 2015) (SR–FINRA–
6 See EDGA Rule 3.13 and EDGX Rule 3.13. No. 10–198). 2014–047).
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![Federal Register / Vol. 80, No. 198 / Wednesday, October 14, 2015 / Notices 61855
change that are filed with the section 19(b)(3)(A) of the Act 3 and Rule FINRA rules; (ii) investigation of
Commission, and all written 19b–4(f)(6)(iii) thereunder,4 which Common Members for violations of
communications relating to the renders it effective upon filing with the federal securities laws, rules or
proposed rule change between the Commission. The Commission is regulations, and Exchange rules that the
Commission and any person, other than publishing this notice to solicit Exchange has certified as identical or
those that may be withheld from the comments on the proposed rule change substantially identical to FINRA rules;
public in accordance with the from interested persons. and (iii) enforcement of compliance by
provisions of 5 U.S.C. 552, will be Common Members with the federal
I. Self-Regulatory Organization’s
available for Web site viewing and securities laws, rules and regulations,
Statement of the Terms of Substance of
printing in the Commission’s Public and Exchange rules that the Exchange
the Proposed Rule Change
Reference Room, 100 F Street NE., has certified as identical or substantially
Washington, DC 20549, on official The Exchange filed a proposal to similar to FINRA rules.8
business days between the hours of amend BZX Rule 3.13 to conform with: The 17d–2 Agreement included a
10:00 a.m. and 3:00 p.m. Copies of such (i) Financial Industry Regulatory certification by the Exchange that states
filing will also be available for Authority, Inc. (‘‘FINRA’’) Rule 5230 for that the requirements contained in
inspection and copying at the principal purposes of an agreement between the certain Exchange rules are identical, or
office of the Exchange. All comments Exchange and FINRA pursuant to Rule substantially similar, to certain FINRA
received will be posted without change; 17d–2 under the Act 5 and (ii) the rules rules that have been identified as
the Commission does not edit personal of EDGA Exchange, Inc. (‘‘EDGA’’) and comparable. Currently, Exchange Rule
identifying information from EDGX Exchange, Inc. (‘‘EDGX’’).6 The 3.13 is not fully incorporated into the
submissions. You should submit only text of the proposed rule change is 17d–2 Agreement as it does not include
information that you wish to make available at the Exchange’s Web site at exceptions similar to FINRA Rule 5230.
available publicly. www.batstrading.com, at the principal Therefore, to conform to comparable
All submissions should refer to File office of the Exchange, and at the FINRA Rule 5230 for purposes of the
No. SR–BYX–2015–41 and should be Commission’s Public Reference Room. 17d–2 Agreement, the Exchange
submitted on or before November 4, II. Self-Regulatory Organization’s proposes to amend Exchange Rule 3.13
2015. Statement of the Purpose of, and to adopt rule text that is substantially
Statutory Basis for, the Proposed Rule similar to FINRA Rule 5230.
For the Commission, by the Division of
Change Currently, Exchange Rule 3.13
Trading and Markets, pursuant to delegated
authority.18 (Payment Designed To Influence Market
In its filing with the Commission, the Prices, Other than Paid Advertising)
Robert W. Errett, Exchange included statements states that ‘‘[n]o Member shall directly
Deputy Secretary. concerning the purpose of, and basis for, or indirectly, give, permit to be given, or
[FR Doc. 2015–26026 Filed 10–13–15; 8:45 am] the proposed rule change and discussed offer to give anything of value to any
BILLING CODE 8011–01–P any comments it received on the person for the purpose of influencing or
proposed rule change. The text of these rewarding the action of such person in
statements may be examined at the connection with the publication or
SECURITIES AND EXCHANGE places specified in Item IV below. The circulation in any newspaper,
COMMISSION Exchange has prepared summaries, set investment service or similar
forth in sections A, B, and C below, of publication of any matter which has, or
[Release No. 34–76092; File No. SR–BATS–
the most significant parts of such is intended to have, an effect upon the
2015–77]
statements. market price of any security; provided,
Self-Regulatory Organizations; BATS A. Self-Regulatory Organization’s that the Rule shall not be construed to
Exchange, Inc.; Notice of Filing and Statement of the Purpose of, and apply to a matter which is clearly
Immediate Effectiveness of a Proposed Statutory Basis for, the Proposed Rule identifiable as paid advertising.’’
Rule Change To Amend Rule 3.13 Change First, the Exchange proposes to
(Payment Designed To Influence redesignate Rule 3.13 as ‘‘Payments
Market Prices, Other Than Paid 1. Purpose Involving Publications that Influence
Advertising) Pursuant to Rule 17d–2 under the the Market Price of a Security’’. This
Act,7 the Exchange and FINRA entered title would mirror that of FINRA Rule
October 7, 2015.
into an agreement to allocate regulatory 5230. The Exchange also proposes to
Pursuant to section 19(b)(1) of the responsibility for common rules (‘‘17d– delete the text of Rule 3.13 in its
Securities Exchange Act of 1934 2 Agreement’’). The 17d–2 Agreement entirety and replace it with rule text that
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 covers common members of the is substantially similar to FINRA Rule
notice is hereby given that on Exchange and FINRA (‘‘Common 5230. As amended, paragraph (a) would
September 23, 2015, BATS Exchange, Members’’) and allocates to FINRA continue to prohibit Exchange members
Inc. (‘‘Exchange’’ or ‘‘BZX’’) filed with regulatory responsibility, with respect to from directly or indirectly, giving,
the Securities and Exchange Common Members, for the following: (i) permitting to be given, or offering to
Commission (‘‘Commission’’) the Examination of Common Members for give anything of value to ‘‘any person
proposed rule change as described in compliance with federal securities laws, for the purpose of influencing or
Items I and II below, which Items have rules and regulations and Exchange rewarding the action of such person in
been substantially prepared by the rules that the Exchange has certified as connection with the publication or
tkelley on DSK3SPTVN1PROD with NOTICES
Exchange. The Exchange has designated identical or substantially similar to circulation in any electronic or other
this proposal as a ‘‘non-controversial’’ public media, including any investment
proposed rule change pursuant to 3 15 U.S.C. 78s(b)(3)(A). service or similar publication, Web site,
4 17 CFR 240.19b–4(f)(6)(iii).
18 17 CFR 200.30–3(a)(12). 5 17 CFR 240.17d–2. 8 See Exchange Act Release No. 58375 (Aug. 18,
1 15 U.S.C. 78s(b)(1). 6 See EDGA Rule 3.13 and EDGX Rule 3.13.
2008), 73 FR 46498 (Aug. 21, 2008) (approving File
2 17 CFR 240.19b–4. 7 17 CFR 240.17d–2. No. 10–182).
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Document Created: 2018-02-27 08:50:21
Document Modified: 2018-02-27 08:50:21
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