80 FR 80420 - Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to ALLB Routing and Other Fees for Use of BATS Y-Exchange, Inc.
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 247 (December 24, 2015)
Federal Register Volume 80, Issue 247 (December 24, 2015)
| Page Range | 80420-80422 | |
| FR Document | 2015-32385 |
[Federal Register Volume 80, Number 247 (Thursday, December 24, 2015)] [Notices] [Pages 80420-80422] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-32385] [[Page 80420]] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76689; File No. SR-BYX-2015-50] Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to ALLB Routing and Other Fees for Use of BATS Y-Exchange, Inc. December 18, 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 15, 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, II, and III below, which Items have been prepared by the Exchange. The Exchange has designated the proposed rule change as one establishing or changing a member due, fee, or other charge imposed by the Exchange under Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\ which renders the proposed rule change effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ 15 U.S.C. 78s(b)(3)(A)(ii). \4\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange filed a proposal to amend the fee schedule applicable to Members \5\ and non-members of the Exchange pursuant to BYX Rules 15.1(a) and (c) (``Fee Schedule'') to adopt fees for the recently adopted ALLB routing strategy. The Exchange also proposes to amend the Fee Codes and Associated Fees table of the Fee Schedule to indicate the amount of the fees and rebates as five decimal points, rather than four decimal points, by adding a zero to the end of each fee and rebate. --------------------------------------------------------------------------- \5\ The term ``Member'' is defined as ``any registered broker or dealer that has been admitted to membership in the Exchange. A Member will have the status of a ``member'' of the Exchange as that term is defined in Section 3(a)(3) of the Act.'' See Exchange Rule 1.5(n). --------------------------------------------------------------------------- The text of the proposed rule change is available at the Exchange's Web site at www.batstrading.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant parts of such statements. A.Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for,the Proposed Rule Change 1. Purpose ALLB Routing Fees The Exchange proposes to adopt fees for the ALLB routing strategy. In sum, ALLB is a routing option under which the order checks the System \6\ for available shares and is then sent to the BATS Exchange, Inc. (``BZX''), EDGA Exchange, Inc. (``EDGA''), and the EDGX Exchange, Inc. (``EDGX'' collectively with the Exchange, BZX, and EDGA, the ``BGM Affiliated Exchanges'').\7\ Specifically, an order subject to the ALLB routing option would execute first against liquidity on the BATS Book.\8\ Any remainder would then be routed to BZX, EDGA, and/or EDGX in accordance with the System routing table.\9\ --------------------------------------------------------------------------- \6\ The term ``System'' is defined as ``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.'' See Exchange Rule 1.5(aa). \7\ See Exchange Rule 11.13(b)(3)(M). See also Securities Exchange Act Release No. 76457 (November 17, 2015), 80 FR 73026 (November 23, 2015) (SR-BYX-2015-46) \8\ The term ``BATS Book'' is defined as ``the System's electronic file of orders.'' See Exchange Rule 1.5(e). \9\ The term ``System routing table'' refers to the proprietary process for determining the specific trading venues to which the System routes orders and the order in which it routes them. See Exchange Rule 11.13(b)(3). --------------------------------------------------------------------------- The Exchange now proposes to adopt three new fee codes, AA, AX, and AZ and related fees for the ALLB routing strategy. These fee codes would enable the Exchange to pass through the rate that BATS Trading, Inc. (``BATS Trading''), the Exchange's affiliated routing broker- dealer, would be charged for routing orders to BZX, EDGA, and EDGX.\10\ Each of the proposed fee codes are described as follows: --------------------------------------------------------------------------- \10\ Orders using the ALLB routing option that execute on the Exchange would be subject to the Exchange's standard fees and rebates, unless the Member achieves a volume tiered reduced fee or enhanced rebate. ---------------------------------------------------------------------------Fee Code AA. Order routed to EDGA using the ALLB routing strategy would yield fee code AA and receive a rebate of $0.00200 per share in securities priced at or above $1.00. Under proposed footnote 11, orders yielding fee code AA in securities priced below $1.00 would be charged no fee nor would they receive a rebate. Fee Code AX. Order routed to EDGX using the ALLB routing strategy would yield fee code AY and be charged a fee of $0.00290 per share in securities priced at or above $1.00. Under proposed footnote 12, orders yielding fee code AX in securities priced below $1.00 would be charged a fee of 0.30% of the transaction's dollar value. Fee Code AZ. Order routed to BZX using the ALLB routing strategy would yield fee code AZ and be charged a fee of $0.00300 per share in securities priced at or above $1.00. Under proposed footnote 13, orders yielding fee code AZ in securities priced below $1.00 would be charged a fee of 0.30% of the transaction's dollar value. BATS Trading will pass through the above rates to the Exchange and the Exchange, in turn, will pass through that exact rate to its Members. The proposed rates would enable the Exchange to equitably allocate its costs among all Members utilizing the ALLB routing strategy. Fee Codes and Associated Fees Table The Exchange also proposes to amend the Fee Codes and Associated Fees table to indicate the amount of the fees and rebates as five decimal points, rather than four decimal points, by adding a zero to the end of each fee and rebate, to reflect the order pricing format on the Exchange's Web site.\11\ The Exchange notes that none of these changes amend any fee or rebate, nor do they alter the manner in which it assesses fees or calculates rebates. --------------------------------------------------------------------------- \11\ The Exchange notes that fee code D already indicates its related fee as five decimal points. --------------------------------------------------------------------------- Implementation Date The Exchange proposes to implement this amendment to its Fee Schedule on January 4, 2016, but the proposed fee codes and their associated rates will not be available until January 8, 2016, the date upon which it announced to Members that it would implement the ALLB routing strategy.\12\ --------------------------------------------------------------------------- \12\ See BATS Announces ALLB Routing Option, available at http://cdn.batstrading.com/resources/release_notes/2015/BATS-ALL-BATS- Routing-Strategy-Release-Schedule-Updated.pdf. The Exchange notes that the fee schedule's date was amended to January 4, 2016 in file no. SR-BYX-2015-51 (December 8, 2015). --------------------------------------------------------------------------- [[Page 80421]] 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the objectives of Section 6 of the Act,\13\ in general, and furthers the objectives of Section 6(b)(4),\14\ in particular, as it is designed to provide for the equitable allocation of reasonable dues, fees and other charges among its Members and other persons using its facilities. The Exchange believes that its proposed rates represent an equitable allocation of reasonable dues, fees, and other charges among Members and other persons using its facilities because the Exchange does not levy additional fees or offer additional rebates for orders that it routes to BZX, EDGA, and EDGX through BATS Trading. The Exchange believes that its proposed pass through the [sic] rate for orders that yield fee codes AA, AX or AZ is equitable and reasonable because it accounts for rate [sic] that BATS Trading would be subject to for orders it routes and are executed on BZX, EDGA, and EDGX. In addition, the proposal allows the Exchange to pass-through to its Members the rate for orders that are routed to BZX, EDGA, and EDGX using the ALLB routing strategy. Furthermore, the Exchange notes that routing through BATS Trading is voluntary. Lastly, the Exchange also believes that the proposed amendment is non-discriminatory because it applies uniformly to all Members. --------------------------------------------------------------------------- \13\ 15 U.S.C. 78f. \14\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- The Exchange believes that the changes to the Fee Codes and Associated Fees table of the Fee Schedule are reasonable because they are designed to provide greater transparency to Members with regard to how the Exchange assesses fees and calculates rebates. The Exchange notes that none of the proposed changes are designed to amend any fee, nor alter the manner in which it assesses fees or calculates rebates. These changes to the Fee Schedule are intended to make the Fee Schedule clearer and less confusing for investors and eliminate potential investor confusion, thereby removing impediments to and perfecting the mechanism of a free and open market and a national market system, and, in general, protecting investors and the public interest. B. Self-Regulatory Organization's Statement on Burden on Competition This proposed rule change does not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange does not believe that this change represents a significant departure from previous pricing offered by the Exchange or pricing offered by the Exchange's competitors. Additionally, Members may opt to disfavor the Exchange's pricing if they believe that alternatives offer them better value. Accordingly, the Exchange does not believe that the proposed changes will impair the ability of Members or competing venues to maintain their competitive standing in the financial markets. The Exchange believes that its proposal to pass through the rates that BATS Trading would be subject to for orders routing to BZX, EDGA, and EDGX using the ALLB routing strategy to Members would increase intermarket competition because it offers customers an alternative means to route orders to those venues. In addition, the proposed pricing would not provide any advantage to Users when routing to BZX, EDGA, and EDGX as compared to other methods of routing or connectivity available to Users by the Exchange because the proposed rates are identical to what the Member would be subject to if it routed to those venues directly. The Exchange believes that its proposal would not burden intramarket competition because the proposed rate would apply uniformly to all Members. The Exchange believes that the changes to the Fee Codes and Associated Fees table of the Fee Schedule would not affect intermarket nor intramarket competition because none of these changes are designed to amend any fee or alter the manner in which the Exchange assesses fees or calculates rebates. These changes are intended to provide greater clarity to Members with regard to how the Exchange access fees and calculates rebates. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others The Exchange has not solicited, and does not intend to solicit, comments on this proposed rule change. The Exchange has not received any unsolicited written comments from Members or other interested parties. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act \15\ and paragraph (f) of Rule 19b-4 thereunder.\16\ 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. --------------------------------------------------------------------------- \15\ 15 U.S.C. 78s(b)(3)(A). \16\ 17 CFR 240.19b-4(f). --------------------------------------------------------------------------- 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 No. SR-BYX-2015-50 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-2015-50. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of such filing will also be available for [[Page 80422]] 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-2015-50 and should be submitted on or before January 14, 2016. --------------------------------------------------------------------------- \17\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\17\ Robert W. Errett, Deputy Secretary. [FR Doc. 2015-32385 Filed 12-23-15; 8:45 am] BILLING CODE 8011-01-P
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SECURITIES AND EXCHANGE II. Self-Regulatory Organization’s EDGX.10 Each of the proposed fee codes
COMMISSION Statement of the Purpose of, and are described as follows:
Statutory Basis for, the Proposed Rule • Fee Code AA. Order routed to
[Release No. 34–76689; File No. SR–BYX– EDGA using the ALLB routing strategy
2015–50] Change
would yield fee code AA and receive a
In its filing with the Commission, the rebate of $0.00200 per share in
Self-Regulatory Organizations; BATS
Y-Exchange, Inc.; Notice of Filing and Exchange included statements securities priced at or above $1.00.
Immediate Effectiveness of a Proposed concerning the purpose of and basis for Under proposed footnote 11, orders
Rule Change Related to ALLB Routing the proposed rule change and discussed yielding fee code AA in securities
and Other Fees for Use of BATS Y- any comments it received on the priced below $1.00 would be charged no
Exchange, Inc. proposed rule change. The text of these fee nor would they receive a rebate.
statements may be examined at the • Fee Code AX. Order routed to
December 18, 2015. places specified in Item IV below. The EDGX using the ALLB routing strategy
Pursuant to Section 19(b)(1) of the Exchange has prepared summaries, set would yield fee code AY and be charged
Securities Exchange Act of 1934 (the forth in Sections A, B, and C below, of a fee of $0.00290 per share in securities
‘‘Act’’),1 and Rule 19b–4 thereunder,2 the most significant parts of such priced at or above $1.00. Under
notice is hereby given that on December statements. proposed footnote 12, orders yielding
15, 2015, BATS Y-Exchange, Inc. (the fee code AX in securities priced below
‘‘Exchange’’ or ‘‘BYX’’) filed with the A.Self-Regulatory Organization’s $1.00 would be charged a fee of 0.30%
Securities and Exchange Commission Statement of the Purpose of, and of the transaction’s dollar value.
(‘‘Commission’’) the proposed rule Statutory Basis for,the Proposed Rule • Fee Code AZ. Order routed to BZX
change as described in Items I, II, and Change using the ALLB routing strategy would
III below, which Items have been yield fee code AZ and be charged a fee
1. Purpose of $0.00300 per share in securities
prepared by the Exchange. The
Exchange has designated the proposed ALLB Routing Fees priced at or above $1.00. Under
rule change as one establishing or proposed footnote 13, orders yielding
The Exchange proposes to adopt fees fee code AZ in securities priced below
changing a member due, fee, or other
charge imposed by the Exchange under for the ALLB routing strategy. In sum, $1.00 would be charged a fee of 0.30%
Section 19(b)(3)(A)(ii) of the Act 3 and ALLB is a routing option under which of the transaction’s dollar value.
Rule 19b–4(f)(2) thereunder,4 which the order checks the System 6 for BATS Trading will pass through the
available shares and is then sent to the above rates to the Exchange and the
renders the proposed rule change
BATS Exchange, Inc. (‘‘BZX’’), EDGA Exchange, in turn, will pass through
effective upon filing with the
Exchange, Inc. (‘‘EDGA’’), and the EDGX that exact rate to its Members. The
Commission. The Commission is
Exchange, Inc. (‘‘EDGX’’ collectively proposed rates would enable the
publishing this notice to solicit
with the Exchange, BZX, and EDGA, the Exchange to equitably allocate its costs
comments on the proposed rule change
‘‘BGM Affiliated Exchanges’’).7 among all Members utilizing the ALLB
from interested persons.
Specifically, an order subject to the routing strategy.
I. Self-Regulatory Organization’s ALLB routing option would execute first Fee Codes and Associated Fees Table
Statement of the Terms of Substance of against liquidity on the BATS Book.8
the Proposed Rule Change The Exchange also proposes to amend
Any remainder would then be routed to
the Fee Codes and Associated Fees table
The Exchange filed a proposal to BZX, EDGA, and/or EDGX in to indicate the amount of the fees and
amend the fee schedule applicable to accordance with the System routing rebates as five decimal points, rather
Members 5 and non-members of the table.9 than four decimal points, by adding a
Exchange pursuant to BYX Rules 15.1(a) The Exchange now proposes to adopt zero to the end of each fee and rebate,
and (c) (‘‘Fee Schedule’’) to adopt fees three new fee codes, AA, AX, and AZ to reflect the order pricing format on the
for the recently adopted ALLB routing and related fees for the ALLB routing Exchange’s Web site.11 The Exchange
strategy. The Exchange also proposes to strategy. These fee codes would enable notes that none of these changes amend
amend the Fee Codes and Associated the Exchange to pass through the rate any fee or rebate, nor do they alter the
Fees table of the Fee Schedule to that BATS Trading, Inc. (‘‘BATS manner in which it assesses fees or
indicate the amount of the fees and calculates rebates.
Trading’’), the Exchange’s affiliated
rebates as five decimal points, rather
routing broker-dealer, would be charged Implementation Date
than four decimal points, by adding a
for routing orders to BZX, EDGA, and
zero to the end of each fee and rebate. The Exchange proposes to implement
The text of the proposed rule change this amendment to its Fee Schedule on
6 The term ‘‘System’’ is defined as ‘‘the electronic
is available at the Exchange’s Web site communications and trading facility designated by January 4, 2016, but the proposed fee
at www.batstrading.com, at the the Board through which securities orders of Users codes and their associated rates will not
principal office of the Exchange, and at are consolidated for ranking, execution and, when be available until January 8, 2016, the
the Commission’s Public Reference applicable, routing away.’’ See Exchange Rule date upon which it announced to
1.5(aa).
Room. 7 See Exchange Rule 11.13(b)(3)(M). See also Members that it would implement the
Securities Exchange Act Release No. 76457 ALLB routing strategy.12
1 15 U.S.C. 78s(b)(1). (November 17, 2015), 80 FR 73026 (November 23,
mstockstill on DSK4VPTVN1PROD with NOTICES
2 17 CFR 240.19b–4. 2015) (SR–BYX–2015–46) 10 Orders using the ALLB routing option that
3 15 U.S.C. 78s(b)(3)(A)(ii). 8 The term ‘‘BATS Book’’ is defined as ‘‘the execute on the Exchange would be subject to the
4 17 CFR 240.19b–4(f)(2). System’s electronic file of orders.’’ See Exchange Exchange’s standard fees and rebates, unless the
5 The term ‘‘Member’’ is defined as ‘‘any Rule 1.5(e). Member achieves a volume tiered reduced fee or
registered broker or dealer that has been admitted 9 The term ‘‘System routing table’’ refers to the enhanced rebate.
11 The Exchange notes that fee code D already
to membership in the Exchange. A Member will proprietary process for determining the specific
have the status of a ‘‘member’’ of the Exchange as trading venues to which the System routes orders indicates its related fee as five decimal points.
that term is defined in Section 3(a)(3) of the Act.’’ and the order in which it routes them. See 12 See BATS Announces ALLB Routing Option,
See Exchange Rule 1.5(n). Exchange Rule 11.13(b)(3). available at http://cdn.batstrading.com/resources/
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2. Statutory Basis B. Self-Regulatory Organization’s III. Date of Effectiveness of the
Statement on Burden on Competition Proposed Rule Change and Timing for
The Exchange believes that the Commission Action
proposed rule change is consistent with This proposed rule change does not
The foregoing rule change has become
the objectives of Section 6 of the Act,13 impose any burden on competition that
effective pursuant to Section 19(b)(3)(A)
in general, and furthers the objectives of is not necessary or appropriate in of the Act 15 and paragraph (f) of Rule
Section 6(b)(4),14 in particular, as it is furtherance of the purposes of the Act. 19b–4 thereunder.16 At any time within
designed to provide for the equitable The Exchange does not believe that this 60 days of the filing of the proposed rule
allocation of reasonable dues, fees and change represents a significant change, the Commission summarily may
other charges among its Members and departure from previous pricing offered temporarily suspend such rule change if
other persons using its facilities. The by the Exchange or pricing offered by it appears to the Commission that such
Exchange believes that its proposed the Exchange’s competitors. action is necessary or appropriate in the
rates represent an equitable allocation of Additionally, Members may opt to public interest, for the protection of
reasonable dues, fees, and other charges disfavor the Exchange’s pricing if they investors, or otherwise in furtherance of
among Members and other persons believe that alternatives offer them the purposes of the Act.
using its facilities because the Exchange better value. Accordingly, the Exchange
IV. Solicitation of Comments
does not levy additional fees or offer does not believe that the proposed
additional rebates for orders that it changes will impair the ability of Interested persons are invited to
routes to BZX, EDGA, and EDGX Members or competing venues to submit written data, views, and
through BATS Trading. The Exchange maintain their competitive standing in arguments concerning the foregoing,
the financial markets. The Exchange including whether the proposed rule
believes that its proposed pass through
believes that its proposal to pass change is consistent with the Act.
the [sic] rate for orders that yield fee
Comments may be submitted by any of
codes AA, AX or AZ is equitable and through the rates that BATS Trading
the following methods:
reasonable because it accounts for rate would be subject to for orders routing to
[sic] that BATS Trading would be BZX, EDGA, and EDGX using the ALLB Electronic Comments
subject to for orders it routes and are routing strategy to Members would • Use the Commission’s Internet
executed on BZX, EDGA, and EDGX. In increase intermarket competition comment form (http://www.sec.gov/
addition, the proposal allows the because it offers customers an rules/sro.shtml); or
Exchange to pass-through to its alternative means to route orders to • Send an email to rule-comments@
Members the rate for orders that are those venues. In addition, the proposed sec.gov. Please include File No. SR–
routed to BZX, EDGA, and EDGX using pricing would not provide any BYX–2015–50 on the subject line.
the ALLB routing strategy. Furthermore, advantage to Users when routing to Paper Comments
the Exchange notes that routing through BZX, EDGA, and EDGX as compared to
other methods of routing or connectivity • Send paper comments in triplicate
BATS Trading is voluntary. Lastly, the
available to Users by the Exchange to Secretary, Securities and Exchange
Exchange also believes that the Commission, 100 F Street NE.,
proposed amendment is non- because the proposed rates are identical
to what the Member would be subject to Washington, DC 20549–1090.
discriminatory because it applies All submissions should refer to File No.
uniformly to all Members. if it routed to those venues directly. The
Exchange believes that its proposal SR–BYX–2015–50. This file number
The Exchange believes that the should be included on the subject line
would not burden intramarket
changes to the Fee Codes and if email is used. To help the
competition because the proposed rate
Associated Fees table of the Fee Commission process and review your
would apply uniformly to all Members.
Schedule are reasonable because they comments more efficiently, please use
are designed to provide greater The Exchange believes that the only one method. The Commission will
transparency to Members with regard to changes to the Fee Codes and post all comments on the Commission’s
how the Exchange assesses fees and Associated Fees table of the Fee Internet Web site (http://www.sec.gov/
calculates rebates. The Exchange notes Schedule would not affect intermarket rules/sro.shtml). Copies of the
that none of the proposed changes are nor intramarket competition because submission, all subsequent
designed to amend any fee, nor alter the none of these changes are designed to amendments, all written statements
manner in which it assesses fees or amend any fee or alter the manner in with respect to the proposed rule
calculates rebates. These changes to the which the Exchange assesses fees or change that are filed with the
calculates rebates. These changes are Commission, and all written
Fee Schedule are intended to make the
intended to provide greater clarity to communications relating to the
Fee Schedule clearer and less confusing
Members with regard to how the proposed rule change between the
for investors and eliminate potential Commission and any person, other than
investor confusion, thereby removing Exchange access fees and calculates
rebates. those that may be withheld from the
impediments to and perfecting the public in accordance with the
mechanism of a free and open market C. Self-Regulatory Organization’s provisions of 5 U.S.C. 552, will be
and a national market system, and, in Statement on Comments on the available for Web site viewing and
general, protecting investors and the Proposed Rule Change Received From printing in the Commission’s Public
public interest.
mstockstill on DSK4VPTVN1PROD with NOTICES
Members, Participants or Others Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
release_notes/2015/BATS-ALL-BATS-Routing- The Exchange has not solicited, and business days between the hours of
Strategy-Release-Schedule-Updated.pdf. The does not intend to solicit, comments on 10:00 a.m. and 3:00 p.m. Copies of such
Exchange notes that the fee schedule’s date was this proposed rule change. The
amended to January 4, 2016 in file no. SR–BYX– filing will also be available for
2015–51 (December 8, 2015). Exchange has not received any
13 15 U.S.C. 78f. unsolicited written comments from 15 15 U.S.C. 78s(b)(3)(A).
14 15 U.S.C. 78f(b)(4). Members or other interested parties. 16 17 CFR 240.19b–4(f).
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![80422 Federal Register / Vol. 80, No. 247 / Thursday, December 24, 2015 / Notices
inspection and copying at the principal the purpose of and basis for the crisis management plans; (ii) in
office of the Exchange. All comments proposed rule change and discussed any coordination and cooperation with the
received will be posted without change; comments it received on the proposed Audit Committee of the Board, monitor
the Commission does not edit personal rule change. The text of these statements the quality and effectiveness of OCC’s IT
identifying information from may be examined at the places specified systems and processes that relate to or
submissions. You should submit only in Item IV below. OCC has prepared affect OCC’s internal controls and assess
information that you wish to make summaries, set forth in sections (A), (B), OCC’s management of IT related
available publicly. All submissions and (C) below, of the most significant compliance risks; (iii) report to the
should refer to File No. SR–BYX–2015– aspects of these statements. Board and the Audit Committee about
50 and should be submitted on or before IT risks and controls; and (iv) serve in
(A) Clearing Agency’s Statement of the an advisory role with respect to IT
January 14, 2016.
Purpose of, and Statutory Basis for, the decisions at OCC. In connection with
For the Commission, by the Division of Proposed Rule Change
Trading and Markets, pursuant to delegated carrying out its responsibilities, the TC
authority.17 1. Purpose would also, in general, inform and make
Robert W. Errett, This proposed rule change concerns recommendations to the Board and
Deputy Secretary. the adoption of the TC Charter and the other Board level committees with
[FR Doc. 2015–32385 Filed 12–23–15; 8:45 am] addition of a description of the TC into respect to IT related matters.
BILLING CODE 8011–01–P Article III, Section 9 of OCC’s By-Laws. Administrative and Procedural
The Board formed the TC in order to Elements of the TC
enhance the Board’s understanding and The TC Charter would provide that
SECURITIES AND EXCHANGE oversight of key technology, information
COMMISSION the TC be comprised of three or more
security, and cyber-security risk issues directors, and meet at least four times
[Release No. 34–76686; File No. SR–OCC– at OCC. Consistent with OCC’s other per year.3 The TC would function in a
2015–018] Board-level committee charters, the TC manner similar to the other Board-level
Charter sets forth: (i) The purpose, Committees in that it would have the
Self-Regulatory Organizations; The functions, and responsibilities of the TC ability to hire specialists and meet in
Options Clearing Corporation; Notice and (ii) the composition and executive session as well as be required
of Filing of a Proposed Rule Change organization of the TC. to report to the Board on an annual
Concerning the Adoption of a Charter
Purpose and Responsibilities of the TC basis. The TC would also have to
of a New Committee of The Options
annually confirm to the Board that its
Clearing Corporation’s Board of As set forth in the TC Charter, the TC
responsibilities, as set forth in the TC
Directors, the Technology Committee would be responsible for: (i) Overseeing
Charter, have been carried out and
major information technology (‘‘IT’’)
December 18, 2015. evaluate its and its members’
related strategies, projects, and
Pursuant to Section 19(b)(1) of the performance on a regular basis.
technology architecture decisions; (ii)
Securities Exchange Act of 1934 monitoring whether OCC’s IT programs 2. Statutory Basis
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 effectively support OCC’s business
notice is hereby given that on December OCC’s governance arrangements,
objectives and strategies; (iii) which include, but are not limited to,
8, 2015, The Options Clearing monitoring OCC’s IT risk management
Corporation (‘‘OCC’’) filed with the the proposed TC Charter promote the
efforts as well as the security of OCC’s effectiveness of OCC’s [sic] Board’s
Securities and Exchange Commission information systems and physical
(‘‘Commission’’) the proposed rule oversight on OCC’s business and
security of information system assets; operational processes. OCC believes that
change as described in Items I and II and (iv) conferring with OCC’s senior IT
below, which Items have been prepared adoption of the TC Charter would
management team and informing the enhance the effectiveness of the Board’s
by OCC. The Commission is publishing Board on IT related matters.
this notice to solicit comments on the oversight on OCC’s business and
Further, and with respect to the TC operational processes, and specifically
proposed rule change from interested Charter’s role in the oversight of OCC’s
persons. technology related processes such as
IT strategy and projects, the TC Charter disaster recovery and crisis management
I. Clearing Agency’s Statement of the provides that the TC would be plans as well as IT systems that relate
Terms of Substance of the Proposed specifically tasked with: (i) Evaluating to internal controls and compliance
Rule Change OCC’s IT strategy, including the risks, as described above, through a
financial, tactical, and strategic benefits dedicated Board-level committee
This proposed rule change by OCC
of IT projects and technology responsible for oversight of such
concerns the adoption of a Charter for
architecture initiatives; (ii) critically processes. As a result of the proposed
a new committee of OCC’s Board of
reviewing IT projects and technology rule change, it is more likely that OCC’s
Directors (‘‘Board’’), the Technology
architecture decisions, including review technology processes work as expected,
Committee (‘‘TC’’). Additionally, OCC is
of the process related to approval of including those processes tied to the
proposing to add a description of the TC
capital expenditures as they relate to IT clearance and settlement of securities
to its By-Laws.
projects; and (iii) making transactions, and therefore the proposed
II. Clearing Agency’s Statement of the recommendations to the Board with rule change promotes the prompt and
Purpose of, and Statutory Basis for, the
mstockstill on DSK4VPTVN1PROD with NOTICES
respect to IT related projects and accurate clearance and settlement of
Proposed Rule Change investments that require Board securities transactions consistent with
In its filing with the Commission, approval. In addition, the TC Charter Section 17A(b)(3)(F) of the Act.4
OCC included statements concerning requires that the TC: (i) Monitor the Furthermore, OCC believes the
quality and effectiveness of OCC’s IT
17 17 CFR 200.30–3(a)(12). and physical security, including 3 Members of the TC would not need to be
1 15 U.S.C. 78s(b)(1). periodically reviewing and appraising technology experts.
2 17 CFR 240.19b–4. OCC’s disaster recovery capabilities and 4 15 U.S.C. 78q–1(b)(3)(F).
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Document Created: 2015-12-24 02:25:26
Document Modified: 2015-12-24 02:25:26
| 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 80420 |
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