80 FR 65826 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Modifying the NYSE Amex Options Fee Schedule

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 207 (October 27, 2015)

Page Range		65826-65828
FR Document		2015-27223
Federal Register, Volume 80 Issue 207 (Tuesday, October 27, 2015)
[Federal Register Volume 80, Number 207 (Tuesday, October 27, 2015)]
[Notices]
[Pages 65826-65828]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-27223]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76215; File No. SR-NYSEMKT-2015-79]


Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and 
Immediate Effectiveness of Proposed Rule Change Modifying the NYSE Amex 
Options Fee Schedule

October 21, 2015.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that, on October 15, 2015, NYSE MKT LLC (the ``Exchange'' or 
``NYSE MKT'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I, II, 
and III below, which Items have been prepared by the self-regulatory 
organization. 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\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    The Exchange proposes to modify the NYSE Amex Options Fee Schedule. 
The Exchange proposes to implement the fee change effective October 15, 
2015. The text of the proposed rule change is available on the 
Exchange's Web site at www.nyse.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 self-regulatory organization 
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 those 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,

[[Page 65827]]

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 purpose of this filing is to change the Section I.C.--NYSE Amex 
Options Market Maker Sliding Scale--Electronic (``Market Maker Sliding 
Scale'') to reduce the per contract rate for each tier by $0.03 if 
volume from posted liquidity exceeds a threshold, effective on October 
15, 2015.
    Section I.C. of the Fee Schedule currently provides a discount to 
NYSE Amex Options Market Maker transaction fees based on a sliding 
volume scale.\4\ Specifically, an NYSE Amex Options Market Maker that 
has monthly volume on the Exchange of less than or equal to 0.10% of 
total industry Customer equity and exchange traded fund (``ETF'') 
options volume \5\ is charged a base rate of $0.23. An NYSE Amex 
Options Market Maker that reaches higher volume thresholds, or Tiers, 
receives a reduction of this per contract rate.\6\
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    \4\ See Fee Schedule, Section I.C.(NYSE Amex Options Market 
Maker Sliding Scale--Electronic), available here, https://www.theice.com/publicdocs/nyse/markets/amex-options/NYSE_Amex_Options_Fee_Schedule.pdf.
    \5\ The volume thresholds are based on an NYSE Amex Options 
Market Makers' volume transacted Electronically as a percentage of 
total industry Customer equity and ETF options volumes as reported 
by the Options Clearing Corporation (the ``OCC''). Total industry 
Customer equity and ETF option volume is comprised of those equity 
and ETF contracts that clear in the Customer account type at OCC and 
does not include contracts that clear in either the Firm or Market 
Maker account type at OCC or contracts overlying a security other 
than an equity or ETF security. See OCC Monthly Statistics Reports, 
available here, http://www.theocc.com/webapps/monthly-volume-reports.
    \6\ In calculating an NYSE Amex Options Market Maker Electronic 
volumes, the Exchange proposes to exclude any volumes attributable 
to Mini Options, QCC trades, CUBE Auctions, and Strategy Execution 
Fee Caps, as these transactions are subject to separate pricing 
described in proposed [sic] Fee Schedule Sections I.B., I.F., I.G., 
and I.J, respectively.
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    The Exchange is proposing to offer Market Makers the ability to 
reduce the per contract rate charged per Tier of the Market Maker 
Sliding Scale--Electronic by $0.03. Specifically, a Market Maker would 
receive the additional $0.03 discount if its monthly volume includes 
contracts traded as a result of posted trading interest that is in 
excess of 0.85% of Industry Customer Equity and ETF Option Volume.\7\ 
Accordingly, if a Market Maker meets this additional threshold, the 
following per contract rates would apply: Tier 1--$0.20; Tier 2--$0.17; 
Tier 3--$0.07; Tier 4--$0.05; Tier 5--$0.02; Tier 6--$0.00; and for 
each contract qualifying for Tier 7 the Market Maker will receive a 
$0.01 credit.
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    \7\ The same exclusions apply to posted volumes as set forth 
supra n. 6.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\8\ in general, and furthers the 
objectives of Sections 6(b)(4) and (5) of the Act,\9\ in particular, 
because it provides for the equitable allocation of reasonable dues, 
fees, and other charges among its members, issuers and other persons 
using its facilities and does not unfairly discriminate between 
customers, issuers, brokers or dealers.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange believes that the proposal to offer an additional 
rebate to Market Makers eligible for the Sliding Scale is reasonable, 
equitable and not unfairly discriminatory because it would incentivize 
Market Makers to increase posted liquidity on the Exchange, which would 
benefit all Exchange participants, including ATP Holders, through 
increased opportunities to trade as well as enhancing price discovery. 
In addition, the proposed changes are equitable and not unfairly 
discriminatory because the credits offered would be based on the amount 
of business transacted on the Exchange.
    For these reasons, the Exchange believes that the proposal is 
consistent with the Act.

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

    In accordance with Section 6(b)(8) of the Act,\10\ 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 the proposed amendments 
to the Marker Maker Sliding Scale is pro-competitive as the credits may 
incentivize Market Makers to increase posted liquidity on the Exchange 
and any resulting increase in volume and liquidity to the Exchange 
would benefit all of Exchange participants through increased 
opportunities to trade as well as enhancing price discovery.
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    \10\ 15 U.S.C. 78f(b)(8).
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    The Exchange notes that it operates in a highly competitive market 
in which market participants can readily favor competing venues. In 
such an environment, the Exchange must continually review, and consider 
adjusting, its fees and credits to remain competitive with other 
exchanges. For the reasons described above, the Exchange believes that 
the proposed rule change reflects this competitive environment.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change is effective upon filing pursuant to 
Section 19(b)(3)(A) \11\ of the Act and subparagraph (f)(2) of Rule 
19b-4 \12\ thereunder, because it establishes a due, fee, or other 
charge imposed by the Exchange.
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(2).
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    At any time within 60 days of the filing of such 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 Commission 
takes such action, the Commission shall institute proceedings under 
Section 19(b)(2)(B) \13\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \13\ 15 U.S.C. 78s(b)(2)(B).
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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-NYSEMKT-2015-79 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-NYSEMKT-2015-79. This

[[Page 65828]]

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-NYSEMKT-2015-79, and should 
be submitted on or before November 17, 2015.
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    \14\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
Brent J. Fields,
Secretary.
[FR Doc. 2015-27223 Filed 10-26-15; 8:45 am]
BILLING CODE 8011-01-P
65826 Federal Register / Vol. 80, No. 207 / Tuesday, October 27, 2015 / Notices

necessary or appropriate in furtherance IV. Solicitation of Comments For the Commission, by the Division of
of the purposes of the Act. The Trading and Markets, pursuant to delegated
Exchange believes that the amendment, Interested persons are invited to authority.20
by increasing the level of participation submit written data, views, and Brent J. Fields,
in the Program, will increase the level arguments concerning the foregoing, Secretary.
of competition around retail executions. including whether the proposed rule [FR Doc. 2015–27219 Filed 10–26–15; 8:45 am]
The Exchange believes that the change is consistent with the Act. BILLING CODE 8011–01–P
transparency and competitiveness of Comments may be submitted by any of
operating a program such as the the following methods:
Program on an exchange market would SECURITIES AND EXCHANGE
result in better prices for retail investors Electronic Comments COMMISSION
and benefits retail investors by • Use the Commission’s Internet [Release No. 34–76215; File No. SR–
expanding the capabilities of Exchanges comment form (http://www.sec.gov/ NYSEMKT–2015–79]
to encompass practices currently rules/sro.shtml); or
allowed on non-exchange venues. Self-Regulatory Organizations; NYSE
• Send an email to rule-comments@ MKT LLC; Notice of Filing and
C. Self-Regulatory Organization’s sec.gov. Please include File Number SR–
Statement on Comments on the Immediate Effectiveness of Proposed
BYX–2015–45 on the subject line. Rule Change Modifying the NYSE
Proposed Rule Change Received From
Members, Participants, or Others Paper Comments Amex Options Fee Schedule
The Exchange has neither solicited • Send paper comments in triplicate October 21, 2015.
nor received written comments on the to Brent J. Fields, Secretary, Securities Pursuant to Section 19(b)(1) 1 of the
proposed rule change. and Exchange Commission, 100 F Street Securities Exchange Act of 1934 (the
III. Date of Effectiveness of the NE., Washington, DC 20549–1090. ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
Proposed Rule Change and Timing for notice is hereby given that, on October
All submissions should refer to File 15, 2015, NYSE MKT LLC (the
Commission Action
Number SR–BYX–2015–45. This file ‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with
The Exchange has designated this rule number should be included on the the Securities and Exchange
filing as non-controversial under subject line if email is used. To help the Commission (the ‘‘Commission’’) the
Section 19(b)(3)(A) of the Act 17 and Commission process and review your proposed rule change as described in
paragraph (f)(6) of Rule 19b–4 comments more efficiently, please use Items I, II, and III below, which Items
thereunder.18 The proposed rule change only one method. The Commission will have been prepared by the self-
effects a change that (A) does not post all comments on the Commission’s regulatory organization. The
significantly affect the protection of Commission is publishing this notice to
Internet Web site (http://www.sec.gov/
investors or the public interest; (B) does solicit comments on the proposed rule
rules/sro.shtml). Copies of the
not impose any significant burden on change from interested persons.
competition; and (C) by its terms, does submission, all subsequent
not become operative for 30 days after amendments, all written statements I. Self-Regulatory Organization’s
the date of the filing, or such shorter with respect to the proposed rule Statement of the Terms of the Substance
time as the Commission may designate change that are filed with the of the Proposed Rule Change
if consistent with the protection of Commission, and all written The Exchange proposes to modify the
investors and the public interest; communications relating to the NYSE Amex Options Fee Schedule. The
provided that the self-regulatory proposed rule change between the Exchange proposes to implement the fee
organization has given the Commission Commission and any person, other than change effective October 15, 2015. The
written notice of its intent to file the those that may be withheld from the text of the proposed rule change is
proposed rule change, along with a brief public in accordance with the available on the Exchange’s Web site at
description and text of the proposed provisions of 5 U.S.C. 552, will be www.nyse.com, at the principal office of
rule change, at least five business days available for Web site viewing and the Exchange, and at the Commission’s
prior to the date of filing of the printing in the Commission’s Public Public Reference Room.
proposed rule change, or such shorter Reference Room, 100 F Street NE.,
time as designated by the II. Self-Regulatory Organization’s
Washington, DC 20549 on official
Commission.19 Statement of the Purpose of, and
business days between the hours of 10
At any time within 60 days of the Statutory Basis for, the Proposed Rule
a.m. and 3 p.m. Copies of such filing Change
filing of the proposed rule change, the also will be available for inspection and
Commission may summarily copying at the principal office of the In its filing with the Commission, the
temporarily suspend such rule change if Exchange. All comments received will self-regulatory organization included
it appears to the Commission that such be posted without change; the statements concerning the purpose of,
action is: (1) Necessary or appropriate in and basis for, the proposed rule change
Commission does not edit personal
the public interest; (2) for the protection and discussed any comments it received
identifying information from
of investors; or (3) otherwise in on the proposed rule change. The text
furtherance of the purposes of the Act. submissions. You should submit only
of those statements may be examined at
If the Commission takes such action, the information that you wish to make
the places specified in Item IV below.
tkelley on DSK3SPTVN1PROD with NOTICES

Commission shall institute proceedings available publicly. All submissions The Exchange has prepared summaries,
to determine whether the proposed rule should refer to File Number SR–BYX– set forth in sections A, B, and C below,
should be approved or disapproved. 2015–45, and should be submitted on or
before November 17, 2015. 20 17 CFR 200.30–3(a)(12).
17 15 U.S.C. 78s(b)(3)(A). 1 15 U.S.C. 78s(b)(1).
18 17 CFR 240.19b–4. 2 15 U.S.C. 78a.
19 The Exchange has satisfied this requirement. 3 17 CFR 240.19b–4.

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Federal Register / Vol. 80, No. 207 / Tuesday, October 27, 2015 / Notices 65827

of the most significant parts of such rates would apply: Tier 1—$0.20; Tier continually review, and consider
statements. 2—$0.17; Tier 3—$0.07; Tier 4—$0.05; adjusting, its fees and credits to remain
Tier 5—$0.02; Tier 6—$0.00; and for competitive with other exchanges. For
A. Self-Regulatory Organization’s
each contract qualifying for Tier 7 the the reasons described above, the
Statement of the Purpose of, and
Market Maker will receive a $0.01 Exchange believes that the proposed
Statutory Basis for, the Proposed Rule
credit. rule change reflects this competitive
Change
environment.
1. Purpose 2. Statutory Basis
The Exchange believes that the C. Self-Regulatory Organization’s
The purpose of this filing is to change Statement on Comments on the
the Section I.C.—NYSE Amex Options proposed rule change is consistent with
Section 6(b) of the Act,8 in general, and Proposed Rule Change Received From
Market Maker Sliding Scale—Electronic Members, Participants, or Others
(‘‘Market Maker Sliding Scale’’) to furthers the objectives of Sections
6(b)(4) and (5) of the Act,9 in particular, No written comments were solicited
reduce the per contract rate for each tier
because it provides for the equitable or received with respect to the proposed
by $0.03 if volume from posted liquidity
allocation of reasonable dues, fees, and rule change.
exceeds a threshold, effective on
October 15, 2015. other charges among its members, III. Date of Effectiveness of the
Section I.C. of the Fee Schedule issuers and other persons using its Proposed Rule Change and Timing for
currently provides a discount to NYSE facilities and does not unfairly Commission Action
Amex Options Market Maker discriminate between customers,
issuers, brokers or dealers. The foregoing rule change is effective
transaction fees based on a sliding upon filing pursuant to Section
volume scale.4 Specifically, an NYSE The Exchange believes that the
proposal to offer an additional rebate to 19(b)(3)(A) 11 of the Act and
Amex Options Market Maker that has subparagraph (f)(2) of Rule 19b–4 12
monthly volume on the Exchange of less Market Makers eligible for the Sliding
Scale is reasonable, equitable and not thereunder, because it establishes a due,
than or equal to 0.10% of total industry fee, or other charge imposed by the
Customer equity and exchange traded unfairly discriminatory because it
would incentivize Market Makers to Exchange.
fund (‘‘ETF’’) options volume 5 is At any time within 60 days of the
charged a base rate of $0.23. An NYSE increase posted liquidity on the
Exchange, which would benefit all filing of such proposed rule change, the
Amex Options Market Maker that Commission summarily may
reaches higher volume thresholds, or Exchange participants, including ATP
temporarily suspend such rule change if
Tiers, receives a reduction of this per Holders, through increased
it appears to the Commission that such
contract rate.6 opportunities to trade as well as
action is necessary or appropriate in the
The Exchange is proposing to offer enhancing price discovery. In addition,
public interest, for the protection of
Market Makers the ability to reduce the the proposed changes are equitable and
investors, or otherwise in furtherance of
per contract rate charged per Tier of the not unfairly discriminatory because the
the purposes of the Act. If the
Market Maker Sliding Scale—Electronic credits offered would be based on the
Commission takes such action, the
by $0.03. Specifically, a Market Maker amount of business transacted on the
Commission shall institute proceedings
would receive the additional $0.03 Exchange.
under Section 19(b)(2)(B) 13 of the Act to
discount if its monthly volume includes For these reasons, the Exchange
determine whether the proposed rule
contracts traded as a result of posted believes that the proposal is consistent
change should be approved or
trading interest that is in excess of with the Act.
disapproved.
0.85% of Industry Customer Equity and B. Self-Regulatory Organization’s
ETF Option Volume.7 Accordingly, if a IV. Solicitation of Comments
Statement on Burden on Competition
Market Maker meets this additional Interested persons are invited to
threshold, the following per contract In accordance with Section 6(b)(8) of
submit written data, views, and
the Act,10 the Exchange does not believe
arguments concerning the foregoing,
4 See Fee Schedule, Section I.C.(NYSE Amex that the proposed rule change would including whether the proposed rule
Options Market Maker Sliding Scale—Electronic), impose any burden on competition that change is consistent with the Act.
available here, https://www.theice.com/publicdocs/ is not necessary or appropriate in
nyse/markets/amex-options/NYSE_Amex_Options_ Comments may be submitted by any of
Fee_Schedule.pdf. furtherance of the purposes of the Act. the following methods:
5 The volume thresholds are based on an NYSE The Exchange believes the proposed
Amex Options Market Makers’ volume transacted amendments to the Marker Maker Electronic Comments
Electronically as a percentage of total industry
Customer equity and ETF options volumes as
Sliding Scale is pro-competitive as the • Use the Commission’s Internet
reported by the Options Clearing Corporation (the
credits may incentivize Market Makers comment form (http://www.sec.gov/
‘‘OCC’’). Total industry Customer equity and ETF to increase posted liquidity on the rules/sro.shtml); or
option volume is comprised of those equity and Exchange and any resulting increase in • Send an email to rule-comments@
ETF contracts that clear in the Customer account volume and liquidity to the Exchange sec.gov. Please include File Number SR–
type at OCC and does not include contracts that
clear in either the Firm or Market Maker account would benefit all of Exchange NYSEMKT–2015–79 on the subject line.
type at OCC or contracts overlying a security other participants through increased
than an equity or ETF security. See OCC Monthly opportunities to trade as well as Paper Comments
Statistics Reports, available here, http:// enhancing price discovery. • Send paper comments in triplicate
www.theocc.com/webapps/monthly-volume-reports.
6 In calculating an NYSE Amex Options Market
The Exchange notes that it operates in to Secretary, Securities and Exchange
Maker Electronic volumes, the Exchange proposes a highly competitive market in which Commission, 100 F Street NE.,
tkelley on DSK3SPTVN1PROD with NOTICES

to exclude any volumes attributable to Mini market participants can readily favor Washington, DC 20549–1090.
Options, QCC trades, CUBE Auctions, and Strategy competing venues. In such an All submissions should refer to File
Execution Fee Caps, as these transactions are
subject to separate pricing described in proposed
environment, the Exchange must Number SR–NYSEMKT–2015–79. This
[sic] Fee Schedule Sections I.B., I.F., I.G., and I.J,
8 15 U.S.C. 78f(b). 11 15 U.S.C. 78s(b)(3)(A).
respectively.
7 The same exclusions apply to posted volumes 9 15 U.S.C. 78f(b)(4) and (5). 12 17 CFR 240.19b–4(f)(2).
as set forth supra n. 6. 10 15 U.S.C. 78f(b)(8). 13 15 U.S.C. 78s(b)(2)(B).

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65828 Federal Register / Vol. 80, No. 207 / Tuesday, October 27, 2015 / Notices

file number should be included on the Securities and Exchange Commission distinguish between orders routed on
subject line if email is used. To help the (‘‘Commission’’) the proposed rule behalf of other broker-dealers and orders
Commission process and review your change as described in Items I and II routed on behalf of introduced retail
comments more efficiently, please use below, which Items have been prepared accounts that are carried on a fully
only one method. The Commission will by the Exchange. The Exchange has disclosed basis, as further described
post all comments on the Commission’s designated this proposal as a ‘‘non- below.
Internet Web site (http://www.sec.gov/ controversial’’ proposed rule change The Exchange established the Retail
rules/sro.shtml). Copies of the pursuant to Section 19(b)(3)(A) of the Program in an attempt to attract retail
submission, all subsequent Act 3 and Rule 19b–4(f)(6) thereunder,4 order flow to the Exchange, primarily by
amendments, all written statements which renders it effective upon filing offering pricing incentives. Under the
with respect to the proposed rule with the Commission. The Commission Retail Program, Retail Member
change that are filed with the is publishing this notice to solicit Organizations 6 (‘‘RMOs’’) are permitted
Commission, and all written comments on the proposed rule change to submit Retail Orders,7 and receive
communications relating to the from interested persons. rebates for added liquidity that are
proposed rule change between the higher than the exchanges standard
Commission and any person, other than I. Self-Regulatory Organization’s rebates for added liquidity.8 In addition,
those that may be withheld from the Statement of the Terms of the Substance RMOs may optionally designate Retail
public in accordance with the of the Proposed Rule Change Orders to be identified as Retail on the
provisions of 5 U.S.C. 552, will be The Exchange filed a proposal to Exchange’s proprietary data feeds.9
available for Web site viewing and amend Rule 11.25, which governs the Exchange Rule 11.25(b)(1) currently
printing in the Commission’s Public Exchange’s Retail Order Attribution states that ‘‘[t]o qualify as a Retail
Reference Room, 100 F Street NE., Program (‘‘Retail Program’’), to Member Organization, a Member must
Washington, DC 20549 on official distinguish between retail orders routed conduct a retail business or handle
business days between the hours of on behalf of other broker-dealers and retail orders on behalf of another broker-
10:00 a.m. and 3:00 p.m. Copies of such retail orders that are routed on behalf of dealer.’’ 10 Rather than stating that one
filing also will be available for introduced retail accounts that are way to qualify as an RMO is to ‘‘handle’’
inspection and copying at the principal carried on a fully disclosed basis, as retail orders on behalf of another broker-
office of the Exchange. All comments further described below. dealer, the Exchange proposes to state
received will be posted without change; The text of the proposed rule change that a Member may qualify as an RMO
the Commission does not edit personal is available at the Exchange’s Web site if it ‘‘routes’’ retail orders on behalf of
identifying information from at www.batstrading.com, at the another broker-dealer. The Exchange
submissions. You should submit only principal office of the Exchange, and at believes that providing routing services
information that you wish to make the Commission’s Public Reference on behalf of other broker-dealers with
available publicly. All submissions Room. retail order flow was the intended
should refer to File Number SR– meaning of the provision and that the
NYSEMKT–2015–79, and should be II. Self-Regulatory Organization’s term ‘‘handle’’ is vague. Thus, the
submitted on or before November 17, Statement of the Purpose of, and Exchange believes that the description
2015. Statutory Basis for, the Proposed Rule would be better if it referred to routing
For the Commission, by the Division of Change services provided to another broker-
Trading and Markets, pursuant to delegated In its filing with the Commission, the dealer with retail customers. The
authority.14 Exchange included statements Exchange also proposes to distinguish
Brent J. Fields, concerning the purpose of and basis for such routing services on behalf of
Secretary. the proposed rule change and discussed another broker-dealer from services
[FR Doc. 2015–27223 Filed 10–26–15; 8:45 am] any comments it received on the provided by broker-dealers that carry
BILLING CODE 8011–01–P proposed rule change. The text of these retail customer accounts on a fully
statements may be examined at the disclosed basis, as described below.
places specified in Item IV below. The As background with respect to the
SECURITIES AND EXCHANGE Exchange has prepared summaries, set proposed change, the Exchange first
COMMISSION forth in Sections A, B, and C below, of would like to describe the terms
the most significant parts of such ‘‘introducing broker’’, ‘‘carrying firm’’ or
[Release No. 34–76205; File No. SR–BATS–
2015–90] statements. ‘‘carrying broker-dealer’’, and ‘‘fully
disclosed,’’ as such terms are commonly
Self-Regulatory Organizations; BATS A. Self-Regulatory Organization’s used in the securities industry. An
Exchange, Inc.; Notice of Filing and Statement of the Purpose of, and ‘‘introducing’’ broker-dealer is ‘‘one that
Immediate Effectiveness of a Proposed Statutory Basis for, the Proposed Rule
Rule Change To Amend Rule 11.25, Change 73677 (November 24, 2014), 79 FR 71150
(December 1, 2014) (SR–BATS–2014–058).
Retail Order Attribution Program 1. Purpose 6 A Retail Member Organization is a Member (or

October 21, 2015. The Exchange proposes to amend a division thereof) that has been approved by the
Exchange under Rule 11.25 to submit Retail Orders.
Pursuant to Section 19(b)(1) of the Rule 11.25, which governs the 7 A Retail Order is an agency order that originates
Securities Exchange Act of 1934 (the Exchange’s Retail Program,5 to from a natural person and is submitted to the
‘‘Act’’),1 and Rule 19b–4 thereunder,2 Exchange by a RMO, provided that no change is
tkelley on DSK3SPTVN1PROD with NOTICES

notice is hereby given that on October 3 15 U.S.C. 78s(b)(3)(A). made to the terms of the order with respect to price
4 17 CFR 240.19b–4(f)(6). or side of market and the order does not originate
14, 2015, BATS Exchange, Inc. (the from a trading algorithm or any computerized
5 The Exchange adopted the Retail Program as
‘‘Exchange’’ or ‘‘BATS’’) filed with the methodology.
Rule 11.24 in 2014. See Securities Exchange Act
8 See BZX Exchange Fee Schedule, available at
Release No. 73237 (September 26, 2014), 79 FR
14 17 CFR 200.30–3(a)(12). http://batstrading.com/support/fee_schedule/bzx/.
59537 (October 2, 2014) (SR–BATS–2014–043). The
1 15 U.S.C. 78s(b)(1). 9 See Rule 11.25(e).
Retail Program was subsequently re-numbered as
2 17 CFR 240.19b–4. 11.25. See Securities Exchange Act Release No. 10 Emphasis added.

VerDate Sep<11>2014 18:24 Oct 26, 2015 Jkt 238001 PO 00000 Frm 00142 Fmt 4703 Sfmt 4703 E:\FR\FM\27OCN1.SGM 27OCN1
Document Created: 2015-12-14 15:35:46
Document Modified: 2015-12-14 15:35:46
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 65826