80 FR 78804 - Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 11.13(b)(4)(A), Amending Aggressive Re-Route Instruction
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 242 (December 17, 2015)
Federal Register Volume 80, Issue 242 (December 17, 2015)
| Page Range | 78804-78806 | |
| FR Document | 2015-31684 |
[Federal Register Volume 80, Number 242 (Thursday, December 17, 2015)] [Notices] [Pages 78804-78806] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-31684] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76625; File No. SR-BYX-2015-49] Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 11.13(b)(4)(A), Amending Aggressive Re-Route Instruction December 11, 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 December 2, 2015, BATS Y-Exchange, Inc. (the ``Exchange'' or ``BYX'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Exchange has designated this proposal as a ``non-controversial'' proposed rule change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b- 4(f)(6) 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). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change The Exchange is proposing to amend the Aggressive Re-Route instruction under Exchange Rule 11.13(b)(4)(A) to route such orders where that order has been locked or crossed by other Trading Centers. 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 [[Page 78805]] 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 currently allows Users to submit various types of limit orders to the Exchange that are processed pursuant to Exchange Rules 11.13(a) and 11.13(b), as set forth below. Rule 11.13(a) describes the process by which an incoming order would execute against the BATS Book. To the extent an order has not been executed in its entirety against the BATS Book, Rule 11.13(b) then describes the process of routing marketable limit orders to one or more Trading Centers, including a description of how the Exchange treats any unfilled balance that returns to the Exchange following the first attempt to fill the order through the routing process. If not filled through routing, and based on the order instructions, the unfilled balance of the order may be posted to the BATS Book. Under previous Exchange rules,\5\ to the extent the unfilled balance of an order had been posted to the BATS Book, should the order subsequently be locked or crossed by another accessible Trading Center, the System \6\ would route the order to the locking or crossing Trading Center if instructed to do so by the User (the ``RECYCLE Option''). The Exchange then filed a proposed rule change with the Commission for immediate effectiveness to modify the RECYCLE Option and rename it as the Aggressive and Super-Aggressive Re-Route instruction.\7\ --------------------------------------------------------------------------- \5\ See Securities Exchange Act Release No63097 (October 13, 2010), 75 FR 64767 (October 20, 2010) (SR-BATS-2010-002 [sic]) (naming the designation of an order as eligible for re-routing after being posted to the BATS Book if another Trading Center has locked or crossed the posted order as the RECYCLE routing option). \6\ As defined in Rule 1.5(aa), the System is the electronic communications and trading facility designated by the Board through which securities orders of Users are consolidated for ranking, execution and, when applicable, routing away. \7\ See Securities Exchange Act Release No. 73295 (October 3, 2014), 79 FR 61117 (October 9, 2014) (SR-BYX-2014-026) (Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Amend Rules 11.13) (adopting the Aggressive Re-Route instruction). In SR-BYX-2014-026, the RECYCLE Option was renamed Super Aggressive Re-Route instruction, under which a routable order posted to the BATS Book routes to away Trading Centers to remove liquidity from such Trading Centers any time such order is locked or crossed. The Exchange subsequently expanded the Super Aggressive Re-Route instruction to provide that when any order with a Super Aggressive Re-Route instruction is locked by an incoming BATS Post Only Order or Partial Post Only at Limit Order that does not remove liquidity pursuant to Rule 11.9(c)(6) or Rule 11.9(c)(7), respectively, the Re-Route order is converted to an executable order when displayed shares become available on the opposite side of the market and will remove liquidity against such shares (``liquidity swap functionality''). See Securities Exchange Act Release No. 74739 (April 16, 2015), 80 FR 22567 (April 22, 2015) (SR-BYX-2015-07). Once amended, the only difference between the Aggressive and Super Aggressive Re-Route instructions would be that the liquidity swap functionality described above would be available to an order subject to the Super Aggressive Re-Route instruction and not available to an order subject to the Aggressive Re-Route instruction. --------------------------------------------------------------------------- The Aggressive Re-Route instruction subjects an order to the routing process after being posted to the BATS Book only if the order is subsequently crossed by another Trading Center (rather than if the order is locked or crossed). Further, a routable non-displayed limit order posted to the BATS Book that is crossed by another accessible Trading Center will be automatically routed to the crossing Trading Center. The Exchange proposes to modify the Aggressive Re-Route instruction to also provide that, where the order is locked by another accessible Trading Center, it would be automatically routed to the locking Trading Center. The proposed amendment would also apply to non- displayed orders with the Aggressive Re-Route instruction.\8\ --------------------------------------------------------------------------- \8\ In April 2015, the Aggressive Re-Route instruction was expanded to apply to non-displayed orders. See Securities Exchange Act Release No. 74739 (April 16, 2015), 80 FR 22567 (April 22, 2015) (SR-BYX-2015-07). --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act \9\ and furthers the objectives of Section 6(b)(5) of the Act \10\ because it is designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, and, in general, to protect investors and the public interest. Specifically, the proposed changes are designed to provide Users with additional control over their orders in the context of a national market system where quotations may lock or cross orders posted to the BATS Book and to facilitate executions on the Exchange consistent with User instructions. Thus, the proposals are directly targeted at removing impediments to and perfecting the mechanism of a free and open market and national market system. The proposed rule change also is designed to support the principles of Section 11A(a)(1) \11\ of the Act in that it seeks to assure fair competition among brokers and dealers and among exchange markets. Lastly, the Exchange notes that the proposed amendments to the Aggressive Re-Route instruction previously existed on the Exchange as the RECYCLE routing option.\12\ --------------------------------------------------------------------------- \9\ 15 U.S.C. 78f(b). \10\ 15 U.S.C. 78f(b)(5). \11\ 15 U.S.C. 78k-1(a)(1). \12\ See supra notes 5 and 7. --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange believes that proposed amendment to the Aggressive Re-Route functionality encourages competition by increasing the likelihood of executions of orders that have been posted to the Exchange. The increased likelihood of an execution where the order is locked by a quotation on a Trading Center should attract additional order flow to the Exchange. 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 proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action 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 from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) of the Act \13\ and Rule 19b-4(f)(6) thereunder.\14\ --------------------------------------------------------------------------- \13\ 15 U.S.C. 78s(b)(3)(A). \14\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b- 4(f)(6)(iii), the Exchange provided the Commission with written notice of its intent to file the proposed rule change, along with a brief description and the 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. --------------------------------------------------------------------------- A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the [[Page 78806]] Act \15\ normally does not become operative for 30 days after the date of its filing. However, Rule 19b-4(f)(6)(iii) \16\ permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Exchange stated that waiver of the operative delay will allow the Exchange to immediately provide Users with additional control over their orders in the context of a national market system where quotations may lock or cross orders posted to the BATS Book and to facilitate executions on the Exchange consistent with User instructions.\17\ The Commission believes the waiver of the operative delay is consistent with the protection of investors and the public interest. Therefore, the Commission hereby waives the operative delay and designates the proposal operative upon filing.\18\ --------------------------------------------------------------------------- \15\ 17 CFR 240.19b-4(f)(6). \16\ 17 CFR 240.19b-4(f)(6)(iii). \17\ The Exchange further stated that it will provide Members with reasonable advance notice of the proposed rule change's implementation date. \18\ For purposes only of waiving the 30-day operative delay, the Commission has also considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). --------------------------------------------------------------------------- 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 Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule change should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-BYX-2015-49 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-BYX-2015-49. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of such filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-BYX-2015-49, and should be submitted on or before January 7, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\19\ --------------------------------------------------------------------------- \19\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2015-31684 Filed 12-16-15; 8:45 am] BILLING CODE 8011-01-P
![78804 Federal Register / Vol. 80, No. 242 / Thursday, December 17, 2015 / Notices
cause the COA to end.14 The Exchange rule change is consistent with Section
believes that these provisions prevent 6(b)(5) of the Act,21 which requires, Robert W. Errett,
an order that was entered after the among other things, that the rules of a Deputy Secretary.
initiation of a COA from trading ahead national securities exchange be [FR Doc. 2015–31682 Filed 12–16–15; 8:45 am]
of an order with the same price that may designed to prevent fraudulent and BILLING CODE 8011–01–P
have executed or entered the COB if it manipulative acts and practices, to
did not COA. Similarly, the Exchange promote just and equitable principles of
believes it is fair for a COA-eligible trade, to remove impediments to and SECURITIES AND EXCHANGE
order that was entered at a better price perfect the mechanism of a free and COMMISSION
than an order that was resting in the open market and a national market
COB prior to initiation of the COA to [Release No. 34–76625; File No. SR–BYX–
system, and, in general, to protect
2015–49]
execute against leg markets that become investors and the public interest.
marketable against the COA-eligible The Commission believes that it is Self-Regulatory Organizations; BATS
order and resting order during the COA, reasonable for CBOE to require that Y-Exchange, Inc.; Notice of Filing and
because the Trading Permit Holder who incoming two-legged COA-eligible Immediate Effectiveness of a Proposed
entered the COA-eligible order was orders be COA’d by default unless a Rule Change to Rule 11.13(b)(4)(A),
willing to pay a better price than that of Trading Permit Holder requests, on an Amending Aggressive Re-Route
the resting order.15 order-by-order basis, that such orders Instruction
Third, the Exchange proposes to not COA. The Commission notes that,
amend CBOE Rule 6.53C(c)(ii)(3) and should a Trading Permit Holder not December 11, 2015.
Interpretation and Policy .06(c) to wish its orders to be COA’d, the Pursuant to Section 19(b)(1) of the
provide that all Trading Permit Holders proposed rule will allow the Trading Securities Exchange Act of 1934 (the
and PAR Officials may submit orders or Permit Holder to request that its orders ‘‘Act’’),1 and Rule 19b–4 thereunder,2
quotes to trade against orders in the not be COA’d on an order-by-order notice is hereby given that on December
COB, as opposed to market basis. In addition, the Commission notes 2, 2015, BATS Y-Exchange, Inc. (the
participants,16 as the Rule currently that the rules of another options ‘‘Exchange’’ or ‘‘BYX’’) filed with the
states.17 In addition, the Exchange exchange provide that certain complex Securities and Exchange Commission
proposes to amend Rule 6.53C(c)(ii)(3) orders be routed to a complex order (‘‘Commission’’) the proposed rule
to provide that order and quote types auction unless a member designates that change as described in Items I and II
(not just quote types) not eligible to rest such orders not initiate a complex order below, which Items have been prepared
or trade against the COB will be auction on that exchange.22 by the Exchange. The Exchange has
automatically cancelled.18 The Commission also believes that it designated this proposal as a ‘‘non-
Finally, the Exchange proposes to controversial’’ proposed rule change
is reasonable for the Exchange to add
make technical and other pursuant to Section 19(b)(3)(A) of the
new provisions regarding how incoming
nonsubstantive changes, which are Act 3 and Rule 19b–4(f)(6) thereunder,4
orders with ‘‘do-not-COA’’ requests or
described in the Notice.19 which renders it effective upon filing
that are not COA-eligible, as well as
III. Discussion and Commission how changes in the leg markets, may with the Commission. The Commission
Findings impact ongoing COAs. Such additions is publishing this notice to solicit
After careful review, the Commission enhance the description of current COA comments on the proposed rule change
finds that the proposed rule change is functionality and the circumstances that from interested persons.
consistent with the requirements of the may cause a COA to end early to help I. Self-Regulatory Organization’s
Act and the rules and regulations ensure investors understand how ‘‘do- Statement of the Terms of the Substance
thereunder applicable to a national not-COA’’ orders may impact a COA. As of the Proposed Rule Change
securities exchange.20 In particular, the noted above, these rules provide that if
entry of a ‘‘do-not-COA’’ order causes a The Exchange is proposing to amend
Commission finds that the proposed
COA to end, any executions that occur the Aggressive Re-Route instruction
14 Id. following the COA will occur in under Exchange Rule 11.13(b)(4)(A) to
15 Id. at 67460. accordance with allocation principles in route such orders where that order has
16 Id. at 67459. CBOE Rules 6.45A and 6.45B place, subject to an exception that the been locked or crossed by other Trading
define market participants as Market-Makers, original COA-eligible order will receive Centers.
Designated Primary Market-Makers with an The text of the proposed rule change
appointment in the subject class, and floor brokers time priority.
and PAR Officials representing orders in the trading
is available at the Exchange’s Web site
crowd. The Exchange explains that Trading Permit IV. Conclusion at www.batstrading.com, at the
Holders and PAR Officials as a group is larger than It is therefore ordered, pursuant to principal office of the Exchange, and at
market participants as a group, as the term market the Commission’s Public Reference
participants does not include other types of Trading Section 19(b)(2) of the Act,23 that the
Permit Holders (such as electronic proprietary proposed rule change (SR–CBOE–2015– Room.
traders or brokers submitting electronic orders on 089), as modified by Amendment No. 1,
behalf of customers from off of the trading floor). II. Self-Regulatory Organization’s
Id.
be, and it hereby is, approved. Statement of the Purpose of, and
17 Id. For the Commission, by the Division of Statutory Basis for, the Proposed Rule
18 Id. at 67460. The Exchange notes that first Trading and Markets, pursuant to delegated Change
asabaliauskas on DSK5VPTVN1PROD with NOTICES
several sentences of CBOE Rule 6.53C(c)(ii)(3) authority.24
reference both orders and quotes eligible to rest on In its filing with the Commission, the
the COB. The Exchange intended for Rule to
21 15
Exchange included statements
provide that both orders and quotes that are not U.S.C. 78f(b)(5).
22 See NASDAQ OMX PHLX LLC (‘‘PHLX’’) Rule
concerning the purpose of and basis for
eligible to rest on the COB be cancelled. Id.
19 Id. at 64759. 1080, Commentary .07(a)(viii) and (e) (describing
1 15 U.S.C. 78s(b)(1).
20 In approving this proposal, the Commission has the complex order live auction (‘‘COLA’’) process
considered the proposed rule’s impact on and ‘‘do not auction’’ orders). 2 17 CFR 240.19b–4.
23 15 U.S.C. 78s(b)(2). 3 15 U.S.C. 78s(b)(3)(A).
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f). 24 17 CFR 200.30–3(a)(12). 4 17 CFR 240.19b–4(f)(6).
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![Federal Register / Vol. 80, No. 242 / Thursday, December 17, 2015 / Notices 78805
the proposed rule change and discussed The Aggressive Re-Route instruction consistent with User instructions. Thus,
any comments it received on the subjects an order to the routing process the proposals are directly targeted at
proposed rule change. The text of these after being posted to the BATS Book removing impediments to and
statements may be examined at the only if the order is subsequently crossed perfecting the mechanism of a free and
places specified in Item IV below. The by another Trading Center (rather than open market and national market
Exchange has prepared summaries, set if the order is locked or crossed). system. The proposed rule change also
forth in Sections A, B, and C below, of Further, a routable non-displayed limit is designed to support the principles of
the most significant parts of such order posted to the BATS Book that is Section 11A(a)(1) 11 of the Act in that it
statements. crossed by another accessible Trading seeks to assure fair competition among
Center will be automatically routed to brokers and dealers and among
A. Self-Regulatory Organization’s
the crossing Trading Center. The exchange markets. Lastly, the Exchange
Statement of the Purpose of, and
Exchange proposes to modify the notes that the proposed amendments to
Statutory Basis for, the Proposed Rule
Aggressive Re-Route instruction to also the Aggressive Re-Route instruction
Change
provide that, where the order is locked previously existed on the Exchange as
1. Purpose by another accessible Trading Center, it the RECYCLE routing option.12
The Exchange currently allows Users would be automatically routed to the
locking Trading Center. The proposed B. Self-Regulatory Organization’s
to submit various types of limit orders Statement on Burden on Competition
to the Exchange that are processed amendment would also apply to non-
pursuant to Exchange Rules 11.13(a) displayed orders with the Aggressive The Exchange does not believe that
and 11.13(b), as set forth below. Rule Re-Route instruction.8 the proposed rule change will result in
11.13(a) describes the process by which 2. Statutory Basis any burden on competition that is not
an incoming order would execute necessary or appropriate in furtherance
The Exchange believes that the of the purposes of the Act. The
against the BATS Book. To the extent an
proposed rule change is consistent with Exchange believes that proposed
order has not been executed in its
Section 6(b) of the Act 9 and furthers the amendment to the Aggressive Re-Route
entirety against the BATS Book, Rule
objectives of Section 6(b)(5) of the Act 10 functionality encourages competition by
11.13(b) then describes the process of
because it is designed to promote just increasing the likelihood of executions
routing marketable limit orders to one or
and equitable principles of trade, to of orders that have been posted to the
more Trading Centers, including a
remove impediments to and perfect the Exchange. The increased likelihood of
description of how the Exchange treats
mechanism of a free and open market an execution where the order is locked
any unfilled balance that returns to the
and a national market system, to foster by a quotation on a Trading Center
Exchange following the first attempt to
cooperation and coordination with should attract additional order flow to
fill the order through the routing
persons engaged in facilitating the Exchange.
process. If not filled through routing,
transactions in securities, and, in
and based on the order instructions, the C. Self-Regulatory Organization’s
general, to protect investors and the
unfilled balance of the order may be Statement on Comments on the
public interest. Specifically, the
posted to the BATS Book. Proposed Rule Change Received From
Under previous Exchange rules,5 to proposed changes are designed to
provide Users with additional control Members, Participants, or Others
the extent the unfilled balance of an
order had been posted to the BATS over their orders in the context of a The Exchange has neither solicited
national market system where nor received written comments on the
Book, should the order subsequently be
quotations may lock or cross orders proposed rule change.
locked or crossed by another accessible
posted to the BATS Book and to
Trading Center, the System 6 would
facilitate executions on the Exchange III. Date of Effectiveness of the
route the order to the locking or crossing
Proposed Rule Change and Timing for
Trading Center if instructed to do so by
posted to the BATS Book routes to away Trading Commission Action
the User (the ‘‘RECYCLE Option’’). The Centers to remove liquidity from such Trading
Exchange then filed a proposed rule Centers any time such order is locked or crossed. Because the proposed rule change
change with the Commission for The Exchange subsequently expanded the Super does not (i) significantly affect the
Aggressive Re-Route instruction to provide that protection of investors or the public
immediate effectiveness to modify the when any order with a Super Aggressive Re-Route
RECYCLE Option and rename it as the instruction is locked by an incoming BATS Post interest; (ii) impose any significant
Aggressive and Super-Aggressive Re- Only Order or Partial Post Only at Limit Order that burden on competition; and (iii) become
Route instruction.7 does not remove liquidity pursuant to Rule operative for 30 days from the date on
11.9(c)(6) or Rule 11.9(c)(7), respectively, the Re-
Route order is converted to an executable order
which it was filed, or such shorter time
5 See Securities Exchange Act Release No63097
when displayed shares become available on the as the Commission may designate, it has
(October 13, 2010), 75 FR 64767 (October 20, 2010) opposite side of the market and will remove become effective pursuant to Section
(SR–BATS–2010–002 [sic]) (naming the designation liquidity against such shares (‘‘liquidity swap
of an order as eligible for re-routing after being
19(b)(3)(A) of the Act 13 and Rule 19b–
functionality’’). See Securities Exchange Act
posted to the BATS Book if another Trading Center Release No. 74739 (April 16, 2015), 80 FR 22567 4(f)(6) thereunder.14
has locked or crossed the posted order as the (April 22, 2015) (SR–BYX–2015–07). Once A proposed rule change filed
RECYCLE routing option). amended, the only difference between the pursuant to Rule 19b–4(f)(6) under the
6 As defined in Rule 1.5(aa), the System is the Aggressive and Super Aggressive Re-Route
electronic communications and trading facility instructions would be that the liquidity swap
11 15 U.S.C. 78k–1(a)(1).
designated by the Board through which securities functionality described above would be available to
asabaliauskas on DSK5VPTVN1PROD with NOTICES
orders of Users are consolidated for ranking, an order subject to the Super Aggressive Re-Route 12 See supra notes 5 and 7.
execution and, when applicable, routing away. instruction and not available to an order subject to 13 15 U.S.C. 78s(b)(3)(A).
7 See Securities Exchange Act Release No. 73295 the Aggressive Re-Route instruction. 14 17 CFR 240.19b–4(f)(6). As required under Rule
8 In April 2015, the Aggressive Re-Route
(October 3, 2014), 79 FR 61117 (October 9, 2014) 19b–4(f)(6)(iii), the Exchange provided the
(SR–BYX–2014–026) (Notice of Filing and instruction was expanded to apply to non-displayed Commission with written notice of its intent to file
Immediate Effectiveness of a Proposed Rule Change orders. See Securities Exchange Act Release No. the proposed rule change, along with a brief
to Amend Rules 11.13) (adopting the Aggressive Re- 74739 (April 16, 2015), 80 FR 22567 (April 22, description and the text of the proposed rule
Route instruction). In SR–BYX–2014–026, the 2015) (SR–BYX–2015–07). change, at least five business days prior to the date
9 15 U.S.C. 78f(b).
RECYCLE Option was renamed Super Aggressive of filing of the proposed rule change, or such
Re-Route instruction, under which a routable order 10 15 U.S.C. 78f(b)(5). shorter time as designated by the Commission.
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Act 15 normally does not become Paper Comments SECURITIES AND EXCHANGE
operative for 30 days after the date of its COMMISSION
filing. However, Rule 19b–4(f)(6)(iii) 16 • Send paper comments in triplicate
permits the Commission to designate a to Brent J. Fields, Secretary, Securities
[Release No. 34–76627; File No. SR–
shorter time if such action is consistent and Exchange Commission, 100 F Street
NYSEArca–2015–118]
with the protection of investors and the NE., Washington, DC 20549–1090.
public interest. The Exchange has asked All submissions should refer to File Self-Regulatory Organizations; NYSE
the Commission to waive the 30-day Number SR–BYX–2015–49. This file Arca, Inc.; Notice of Filing and
operative delay so that the proposal may number should be included on the Immediate Effectiveness of Proposed
become operative immediately upon Rule Change Amending the NYSE Arca
subject line if email is used. To help the
filing. The Exchange stated that waiver Options Fee Schedule
Commission process and review your
of the operative delay will allow the
Exchange to immediately provide Users comments more efficiently, please use
December 11, 2015.
with additional control over their orders only one method. The Commission will
post all comments on the Commission’s Pursuant to Section 19(b)(1) 1 of the
in the context of a national market
Internet Web site (http://www.sec.gov/ Securities Exchange Act of 1934 (the
system where quotations may lock or
cross orders posted to the BATS Book rules/sro.shtml). Copies of the ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
and to facilitate executions on the submission, all subsequent notice is hereby given that, on December
Exchange consistent with User amendments, all written statements 1, 2015, NYSE Arca, Inc. (the
instructions.17 The Commission with respect to the proposed rule ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with
believes the waiver of the operative change that are filed with the the Securities and Exchange
delay is consistent with the protection Commission, and all written Commission (the ‘‘Commission’’) the
of investors and the public interest. communications relating to the proposed rule change as described in
Therefore, the Commission hereby proposed rule change between the Items I, II, and III below, which Items
waives the operative delay and Commission and any person, other than have been prepared by the self-
designates the proposal operative upon those that may be withheld from the regulatory organization. The
filing.18 public in accordance with the Commission is publishing this notice to
At any time within 60 days of the provisions of 5 U.S.C. 552, will be solicit comments on the proposed rule
filing of the proposed rule change, the available for Web site viewing and change from interested persons.
Commission summarily may printing in the Commission’s Public I. Self-Regulatory Organization’s
temporarily suspend such rule change if Reference Room, 100 F Street NE., Statement of the Terms of Substance of
it appears to the Commission that such Washington, DC 20549 on official the Proposed Rule Change
action is necessary or appropriate in the business days between the hours of
public interest, for the protection of 10:00 a.m. and 3:00 p.m. Copies of such The Exchange proposes to amend the
investors, or otherwise in furtherance of filing also will be available for NYSE Arca Options Fee Schedule (‘‘Fee
the purposes of the Act. If the inspection and copying at the principal Schedule’’). The Exchange proposes to
Commission takes such action, the office of the Exchange. All comments implement the fee changes effective
Commission shall institute proceedings received will be posted without change; December 1, 2015. The proposed rule
to determine whether the proposed rule the Commission does not edit personal change is available on the Exchange’s
change should be approved or
identifying information from Web site at www.nyse.com, at the
disapproved.
submissions. You should submit only principal office of the Exchange, and at
IV. Solicitation of Comments information that you wish to make the Commission’s Public Reference
available publicly. All submissions Room.
Interested persons are invited to
should refer to File Number SR–BYX–
submit written data, views, and II. Self-Regulatory Organization’s
arguments concerning the foregoing, 2015–49, and should be submitted on or
Statement of the Purpose of, and
including whether the proposed rule before January 7, 2016.
Statutory Basis for, the Proposed Rule
change is consistent with the Act. For the Commission, by the Division of Change
Comments may be submitted by any of Trading and Markets, pursuant to delegated
the following methods: authority.19 In its filing with the Commission, the
Robert W. Errett, self-regulatory organization included
Electronic Comments
Deputy Secretary. statements concerning the purpose of,
• Use the Commission’s Internet [FR Doc. 2015–31684 Filed 12–16–15; 8:45 am] and basis for, the proposed rule change
comment form (http://www.sec.gov/ and discussed any comments it received
BILLING CODE 8011–01–P
rules/sro.shtml); or on the proposed rule change. The text
• Send an email to rule-comments@ of those statements may be examined at
sec.gov. Please include File Number SR– the places specified in Item IV below.
BYX–2015–49 on the subject line. The Exchange has prepared summaries,
set forth in sections A, B, and C below,
asabaliauskas on DSK5VPTVN1PROD with NOTICES
15 17 CFR 240.19b–4(f)(6). of the most significant parts of such
16 17 CFR 240.19b–4(f)(6)(iii). statements.
17 The Exchange further stated that it will provide
Members with reasonable advance notice of the
proposed rule change’s implementation date.
18 For purposes only of waiving the 30-day
operative delay, the Commission has also 1 15 U.S.C. 78s(b)(1).
considered the proposed rule’s impact on
2 15 U.S.C. 78a.
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f). 19 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4.
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Document Created: 2018-03-02 09:18:48
Document Modified: 2018-03-02 09:18:48
| 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 78804 |
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