80 FR 80825 - Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 11.6(n)(1), Routing/Posting Instructions, To Amend the Aggressive Instruction
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 248 (December 28, 2015)
Federal Register Volume 80, Issue 248 (December 28, 2015)
| Page Range | 80825-80827 | |
| FR Document | 2015-32523 |
[Federal Register Volume 80, Number 248 (Monday, December 28, 2015)] [Notices] [Pages 80825-80827] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-32523] [[Page 80825]] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76714; File No. SR-EDGX-2015-64] Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 11.6(n)(1), Routing/Posting Instructions, To Amend the Aggressive Instruction December 21, 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 16, 2015, EDGX Exchange, Inc. (the ``Exchange'' or ``EDGX'') 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)(iii) thereunder,\4\ which renders it effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ 15 U.S.C. 78s(b)(3)(A). \4\ 17 CFR 240.19b-4(f)(6)(iii). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange filed a proposal to amend the Aggressive instruction under Exchange Rule 11.6(n)(1) to route such orders where that order has been locked or crossed by other Trading Centers. The proposed rule change is based on recently filed proposed rule changes by BATS Exchange, Inc. (``BZX'') and BATS Y-Exchange, Inc. (``BYX'').\5\ --------------------------------------------------------------------------- \5\ See Securities Exchange Act Release Nos. 76623 (December 11, 2015) (SR-BATS-2015-112), and 76625 (December 11, 2015) (SR-BYX- 2015-49) (amending the Aggressive Re-Route instruction under BYX and BZX Rules 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 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 the Statutory Basis for, the Proposed Rule Change 1. Purpose In early 2014, the Exchange and its affiliate, EDGA Exchange, Inc. (``EDGA'') received approval to effect a merger (the ``Merger'') of the Exchange's parent company, Direct Edge Holdings LLC, with BATS Global Markets, Inc., the parent of BZX and BYX (together with BZX, EDGA and EDGX, the ``BGM Affiliated Exchanges'').\6\ In the context of the Merger, the BGM Affiliated Exchanges are working to align their rules and functionality, retaining only intended differences between the BGM Affiliated Exchanges. Thus, the Exchange proposes to amend the Aggressive instruction under Exchange Rule 11.6(n)(1) in order to conform with recently filed proposed rule changes by BYX and BZX\7\ to provide a consistent rule set across each of the BGM Affiliated Exchanges.\8\ --------------------------------------------------------------------------- \6\ See Securities Exchange Act Release No. 71449 (January 30, 2014), 79 FR 6961 (February 5, 2014) (SR-EDGX-2013-43; SR-EDGA-2013- 34). \7\ See supra note 5. \8\ The Exchange notes that EDGA intends to file an identical proposal with the Commission. --------------------------------------------------------------------------- Users \9\ may submit Limit Orders \10\ to the Exchange that are processed pursuant to Exchange Rules 11.10(a) and 11.11, as set forth below. Rule 11.10(a) describes the process by which an incoming order would execute against the EDGX Book.\11\ To the extent an order has not been executed in its entirety against the EDGX Book, Rule 11.11 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 EDGX Book. --------------------------------------------------------------------------- \9\ The term ``User'' means ``any Member or Sponsored Participant who is authorized to obtain access to the System pursuant to Rule 11.3.'' See Exchange Rule 1.5(ee). \10\ See Exchange Rule 11.8(b). \11\ See Exchange Rule 1.5(d). --------------------------------------------------------------------------- The Aggressive instruction subjects an order to the routing process after being posted to the EDGX Book only if the order is subsequently crossed by another Trading Center (rather than if the order is locked or crossed). Further, a routable Limit Order with a Non-Displayed \12\ instruction posted to the EDGX 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 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 orders with a Non-Displayed instruction and Aggressive instruction.\13\ --------------------------------------------------------------------------- \12\ See Exchange Rule 11.6(e)(2). \13\ The Exchange also provides the Super Aggressive instruction which directs the System to route the order if an away Trading Center locks or crosses the limit price of the order resting on the EDGX Book. See Exchange Rule 11.6(n)(2). When any order with a Super Aggressive instruction is locked by an incoming order with a Post Only instruction that does not remove liquidity pursuant to Rule 11.6(n)(4) below, the order with a Super Aggressive instruction is converted to an executable order and will remove liquidity against such incoming order (``liquidity swap functionality''). Id. Once amended, the only difference between the Aggressive and Super Aggressive instructions would be that the liquidity swap functionality described above would be available to an order subject to the Super Aggressive instruction and not available to an order subject to the Aggressive instruction. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act \14\ and furthers the objectives of Section 6(b)(5) of the Act \15\ 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 EDGX 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 [[Page 80826]] open market and national market system. The proposed rule change also is designed to support the principles of Section 11A(a)(1) \16\ 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 instruction previously existed on BZX and BYX as the RECYCLE routing option.\17\ --------------------------------------------------------------------------- \14\ 15 U.S.C. 78f(b). \15\ 15 U.S.C. 78f(b)(5). \16\ 15 U.S.C. 78k-1(a)(1). \17\ See Securities Exchange Act Release Nos. 59967 (May 21, 2009), 74 FR 25793 (May 29, 2009) (SR-BATS-2009-015) (proposing to allow 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); 62404 (June 30, 2010), 75 FR 39303 (July 8, 2010) (SR-BATS-2010-017) (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);and 63097 (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). --------------------------------------------------------------------------- Consistent with Section 6(b)(5) of the Act,\18\ the proposed rule change, combined with the planned filing for EDGA, would allow the BGM Affiliated Exchanges to provide a consistent set of rules as it relates to the routing of orders that are locked or crossed by a Trading Center. Consistent rules, in turn, will simplify the regulatory requirements for Members of the Exchange that are also participants on EDGA, BYZ and/or BZX. The proposed rule change would provide greater harmonization between rules of similar purpose on the BGM Affiliated Exchanges, resulting in greater uniformity and less burdensome and more efficient regulatory compliance and understanding of Exchange Rules. As such, the proposed rule change would foster cooperation and coordination with persons engaged in facilitating transactions in securities and would remove impediments to and perfect the mechanism of a free and open market and a national market system. --------------------------------------------------------------------------- \18\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- 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 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 \19\ and Rule 19b-4(f)(6) thereunder.\20\ --------------------------------------------------------------------------- \19\ 15 U.S.C. 78s(b)(3)(A). \20\ 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 Act \21\ normally does not become operative for 30 days after the date of its filing. However, Rule 19b-4(f)(6)(iii) \22\ 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 EDGX Book and to facilitate executions on the Exchange consistent with User instructions.\23\ 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.\24\ --------------------------------------------------------------------------- \21\ 17 CFR 240.19b-4(f)(6). \22\ 17 CFR 240.19b-4(f)(6)(iii). \23\ The Exchange further stated that it will provide Members with reasonable advance notice of the proposed rule change's implementation date. \24\ 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-EDGX-2015-64 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-EDGX-2015-64. 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 [[Page 80827]] business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the 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-EDGX-2015-64, and should be submitted on or before January 19, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\25\ --------------------------------------------------------------------------- \25\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2015-32523 Filed 12-24-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 248 / Monday, December 28, 2015 / Notices 80825
SECURITIES AND EXCHANGE concerning the purpose of and basis for unfilled balance of the order may be
COMMISSION the proposed rule change and discussed posted to the EDGX Book.
any comments it received on the The Aggressive instruction subjects an
[Release No. 34–76714; File No. SR–EDGX– order to the routing process after being
2015–64] proposed rule change. The text of these
statements may be examined at the posted to the EDGX Book only if the
Self-Regulatory Organizations; EDGX places specified in Item IV below. The order is subsequently crossed by
Exchange, Inc.; Notice of Filing and Exchange has prepared summaries, set another Trading Center (rather than if
Immediate Effectiveness of a Proposed forth in Sections A, B, and C below, of the order is locked or crossed). Further,
Rule Change to Rule 11.6(n)(1), the most significant parts of such a routable Limit Order with a Non-
Routing/Posting Instructions, To statements. Displayed 12 instruction posted to the
Amend the Aggressive Instruction EDGX Book that is crossed by another
A. Self-Regulatory Organization’s accessible Trading Center will be
December 21, 2015. Statement of the Purpose of, and the automatically routed to the crossing
Pursuant to Section 19(b)(1) of the Statutory Basis for, the Proposed Rule Trading Center. The Exchange proposes
Securities Exchange Act of 1934 (the Change to modify the Aggressive instruction to
‘‘Act’’),1 and Rule 19b–4 thereunder,2 also provide that, where the order is
notice is hereby given that on December 1. Purpose locked by another accessible Trading
16, 2015, EDGX Exchange, Inc. (the In early 2014, the Exchange and its Center, it would be automatically routed
‘‘Exchange’’ or ‘‘EDGX’’) filed with the affiliate, EDGA Exchange, Inc. to the locking Trading Center. The
Securities and Exchange Commission (‘‘EDGA’’) received approval to effect a proposed amendment would also apply
(‘‘Commission’’) the proposed rule to orders with a Non-Displayed
merger (the ‘‘Merger’’) of the Exchange’s
change as described in Items I and II instruction and Aggressive
parent company, Direct Edge Holdings
below, which Items have been prepared instruction.13
LLC, with BATS Global Markets, Inc.,
by the Exchange. The Exchange has
the parent of BZX and BYX (together 2. Statutory Basis
designated this proposal as a ‘‘non-
controversial’’ proposed rule change with BZX, EDGA and EDGX, the ‘‘BGM The Exchange believes that the
pursuant to Section 19(b)(3)(A) of the Affiliated Exchanges’’).6 In the context proposed rule change is consistent with
Act 3 and Rule 19b–4(f)(6)(iii) of the Merger, the BGM Affiliated Section 6(b) of the Act 14 and furthers
thereunder,4 which renders it effective Exchanges are working to align their the objectives of Section 6(b)(5) of the
upon filing with the Commission. The rules and functionality, retaining only Act 15 because it is designed to promote
Commission is publishing this notice to intended differences between the BGM just and equitable principles of trade, to
solicit comments on the proposed rule Affiliated Exchanges. Thus, the remove impediments to and perfect the
change from interested persons. Exchange proposes to amend the mechanism of a free and open market
Aggressive instruction under Exchange and a national market system, to foster
I. Self-Regulatory Organization’s Rule 11.6(n)(1) in order to conform with cooperation and coordination with
Statement of the Terms of Substance of recently filed proposed rule changes by persons engaged in facilitating
the Proposed Rule Change BYX and BZX7 to provide a consistent transactions in securities, and, in
The Exchange filed a proposal to rule set across each of the BGM general, to protect investors and the
amend the Aggressive instruction under Affiliated Exchanges.8 public interest. Specifically, the
Exchange Rule 11.6(n)(1) to route such Users 9 may submit Limit Orders 10 to proposed changes are designed to
orders where that order has been locked the Exchange that are processed provide Users with additional control
or crossed by other Trading Centers. The pursuant to Exchange Rules 11.10(a) over their orders in the context of a
proposed rule change is based on and 11.11, as set forth below. Rule national market system where
recently filed proposed rule changes by 11.10(a) describes the process by which quotations may lock or cross orders
BATS Exchange, Inc. (‘‘BZX’’) and an incoming order would execute posted to the EDGX Book and to
BATS Y-Exchange, Inc. (‘‘BYX’’).5 against the EDGX Book.11 To the extent facilitate executions on the Exchange
The text of the proposed rule change consistent with User instructions. Thus,
an order has not been executed in its
is available at the Exchange’s Web site the proposals are directly targeted at
at www.batstrading.com, at the entirety against the EDGX Book, Rule
11.11 then describes the process of removing impediments to and
principal office of the Exchange, and at perfecting the mechanism of a free and
the Commission’s Public Reference routing marketable Limit Orders to one
Room. or more Trading Centers, including a 12 See Exchange Rule 11.6(e)(2).
description of how the Exchange treats 13 The Exchange also provides the Super
II. Self-Regulatory Organization’s any unfilled balance that returns to the Aggressive instruction which directs the System to
Statement of the Purpose of, and Exchange following the first attempt to route the order if an away Trading Center locks or
Statutory Basis for, the Proposed Rule fill the order through the routing crosses the limit price of the order resting on the
Change EDGX Book. See Exchange Rule 11.6(n)(2). When
process. If not filled through routing, any order with a Super Aggressive instruction is
In its filing with the Commission, the and based on the order instructions, the locked by an incoming order with a Post Only
Exchange included statements instruction that does not remove liquidity pursuant
6 See Securities Exchange Act Release No. 71449
to Rule 11.6(n)(4) below, the order with a Super
Aggressive instruction is converted to an executable
1 15 U.S.C. 78s(b)(1). (January 30, 2014), 79 FR 6961 (February 5, 2014) order and will remove liquidity against such
2 17 CFR 240.19b–4. (SR–EDGX–2013–43; SR–EDGA–2013–34). incoming order (‘‘liquidity swap functionality’’). Id.
mstockstill on DSK4VPTVN1PROD with NOTICES
7 See supra note 5.
3 15 U.S.C. 78s(b)(3)(A). Once amended, the only difference between the
8 The Exchange notes that EDGA intends to file
4 17 CFR 240.19b–4(f)(6)(iii). Aggressive and Super Aggressive instructions
5 See Securities Exchange Act Release Nos. 76623 an identical proposal with the Commission. would be that the liquidity swap functionality
9 The term ‘‘User’’ means ‘‘any Member or described above would be available to an order
(December 11, 2015) (SR–BATS–2015–112), and
76625 (December 11, 2015) (SR–BYX–2015–49) Sponsored Participant who is authorized to obtain subject to the Super Aggressive instruction and not
(amending the Aggressive Re-Route instruction access to the System pursuant to Rule 11.3.’’ See available to an order subject to the Aggressive
under BYX and BZX Rules 11.13(b)(4)(A) to route Exchange Rule 1.5(ee). instruction.
10 See Exchange Rule 11.8(b). 14 15 U.S.C. 78f(b).
such orders where that order has been locked or
crossed by other Trading Centers). 11 See Exchange Rule 1.5(d). 15 15 U.S.C. 78f(b)(5).
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![80826 Federal Register / Vol. 80, No. 248 / Monday, December 28, 2015 / Notices
open market and national market an execution where the order is locked designates the proposal operative upon
system. The proposed rule change also by a quotation on a Trading Center filing.24
is designed to support the principles of should attract additional order flow to At any time within 60 days of the
Section 11A(a)(1) 16 of the Act in that it the Exchange. filing of the proposed rule change, the
seeks to assure fair competition among Commission summarily may
brokers and dealers and among C. Self-Regulatory Organization’s temporarily suspend such rule change if
exchange markets. Lastly, the Exchange Statement on Comments on the it appears to the Commission that such
notes that the proposed amendments to Proposed Rule Change Received From action is necessary or appropriate in the
the Aggressive instruction previously Members, Participants, or Others public interest, for the protection of
existed on BZX and BYX as the investors, or otherwise in furtherance of
The Exchange has neither solicited
RECYCLE routing option.17 the purposes of the Act. If the
nor received written comments on the
Consistent with Section 6(b)(5) of the Commission takes such action, the
proposed rule change. Commission shall institute proceedings
Act,18 the proposed rule change,
combined with the planned filing for III. Date of Effectiveness of the to determine whether the proposed rule
EDGA, would allow the BGM Affiliated Proposed Rule Change and Timing for change should be approved or
Exchanges to provide a consistent set of Commission Action disapproved.
rules as it relates to the routing of orders IV. Solicitation of Comments
that are locked or crossed by a Trading Because the proposed rule change
Center. Consistent rules, in turn, will does not (i) significantly affect the Interested persons are invited to
simplify the regulatory requirements for protection of investors or the public submit written data, views, and
Members of the Exchange that are also interest; (ii) impose any significant arguments concerning the foregoing,
participants on EDGA, BYZ and/or BZX. burden on competition; and (iii) become including whether the proposed rule
operative for 30 days from the date on change is consistent with the Act.
The proposed rule change would
which it was filed, or such shorter time Comments may be submitted by any of
provide greater harmonization between
as the Commission may designate, it has the following methods:
rules of similar purpose on the BGM
Affiliated Exchanges, resulting in become effective pursuant to Section Electronic Comments
greater uniformity and less burdensome 19(b)(3)(A) of the Act 19 and Rule 19b–
• Use the Commission’s Internet
and more efficient regulatory 4(f)(6) thereunder.20
comment form (http://www.sec.gov/
compliance and understanding of A proposed rule change filed rules/sro.shtml); or
Exchange Rules. As such, the proposed pursuant to Rule 19b–4(f)(6) under the • Send an email to rule-comments@
rule change would foster cooperation Act 21 normally does not become sec.gov. Please include File Number SR–
and coordination with persons engaged operative for 30 days after the date of its EDGX–2015–64 on the subject line.
in facilitating transactions in securities filing. However, Rule 19b–4(f)(6)(iii) 22
and would remove impediments to and Paper Comments
permits the Commission to designate a
perfect the mechanism of a free and shorter time if such action is consistent • Send paper comments in triplicate
open market and a national market with the protection of investors and the to Secretary, Securities and Exchange
system. public interest. The Exchange has asked Commission, 100 F Street NE.,
the Commission to waive the 30-day Washington, DC 20549–1090.
B. Self-Regulatory Organization’s
Statement on Burden on Competition operative delay so that the proposal may All submissions should refer to File
become operative immediately upon Number SR–EDGX–2015–64. This file
The Exchange does not believe that filing. The Exchange stated that waiver number should be included on the
the proposed rule change will result in of the operative delay will allow the subject line if email is used. To help the
any burden on competition that is not Exchange to immediately provide Users Commission process and review your
necessary or appropriate in furtherance with additional control over their orders comments more efficiently, please use
of the purposes of the Act. The in the context of a national market only one method. The Commission will
Exchange believes that proposed system where quotations may lock or post all comments on the Commission’s
amendment to the Aggressive cross orders posted to the EDGX Book Internet Web site (http://www.sec.gov/
functionality encourages competition by and to facilitate executions on the rules/sro.shtml). Copies of the
increasing the likelihood of executions Exchange consistent with User submission, all subsequent
of orders that have been posted to the instructions.23 The Commission amendments, all written statements
Exchange. The increased likelihood of believes the waiver of the operative with respect to the proposed rule
delay is consistent with the protection change that are filed with the
16 15 U.S.C. 78k–1(a)(1).
of investors and the public interest. Commission, and all written
17 See Securities Exchange Act Release Nos.
59967 (May 21, 2009), 74 FR 25793 (May 29, 2009) Therefore, the Commission hereby communications relating to the
(SR–BATS–2009–015) (proposing to allow the waives the operative delay and proposed rule change between the
designation of an order as eligible for re-routing Commission and any person, other than
after being posted to the BATS Book if another 19 15 those that may be withheld from the
Trading Center has locked or crossed the posted U.S.C. 78s(b)(3)(A).
order); 62404 (June 30, 2010), 75 FR 39303 (July 8,
20 17 CFR 240.19b–4(f)(6). As required under Rule public in accordance with the
2010) (SR–BATS–2010–017) (naming the 19b–4(f)(6)(iii), the Exchange provided the provisions of 5 U.S.C. 552, will be
designation of an order as eligible for re-routing Commission with written notice of its intent to file available for Web site viewing and
after being posted to the BATS Book if another the proposed rule change, along with a brief
printing in the Commission’s Public
mstockstill on DSK4VPTVN1PROD with NOTICES
Trading Center has locked or crossed the posted description and the text of the proposed rule
order as the RECYCLE routing option);and 63097 change, at least five business days prior to the date Reference Room, 100 F Street NE.,
(October 13, 2010), 75 FR 64767 (October 20, 2010) of filing of the proposed rule change, or such Washington, DC 20549, on official
(SR–BATS–2010–002)[sic] (naming the designation shorter time as designated by the Commission.
21 17 CFR 240.19b–4(f)(6).
of an order as eligible for re-routing after being 24 For purposes only of waiving the 30-day
posted to the BATS Book if another Trading Center 22 17 CFR 240.19b–4(f)(6)(iii).
operative delay, the Commission has also
has locked or crossed the posted order as the 23 The Exchange further stated that it will provide considered the proposed rule’s impact on
RECYCLE routing option). Members with reasonable advance notice of the efficiency, competition, and capital formation. See
18 15 U.S.C. 78f(b)(5). proposed rule change’s implementation date. 15 U.S.C. 78c(f).
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business days between the hours of I. Self-Regulatory Organization’s would be defined as ‘‘any execution
10:00 a.m. and 3:00 p.m. Copies of the Statement of the Terms of Substance of platform operated as or by a registered
filing also will be available for the Proposed Rule Change National Securities Exchange (as
inspection and copying at the principal The Exchange filed a proposal to defined in Section 3(a)(1) of the
office of the Exchange. All comments amend the Market Data section of its fee Exchange Act), an Alternative Trading
received will be posted without change; schedule to: (i) Adopt definitions for the System (as defined in Rule 300(a) of
the Commission does not edit personal terms ‘‘Non-Display Usage’’ and Regulation ATS), or an Electronic
identifying information from ‘‘Trading Platforms’’; and (ii) amend the Communications Network (as defined in
submissions. You should submit only fees for TCP Depth and Multicast Depth Rule 600(b)(23) of Regulation NMS).’’ 7
information that you wish to make data products,5 also known as BZX BZX Depth Fees
available publicly. All submissions Depth, to increase the Internal
BZX Depth is an uncompressed
should refer to File Number SR–EDGX– Distributor fee and adopt a new fee for
market data feed that provides depth-of-
2015–64, and should be submitted on or Non-Display Usage.
The text of the proposed rule change book quotations and execution
before January 19, 2016. information based on equity orders
is available at the Exchange’s Web site
For the Commission, by the Division of at www.batstrading.com, at the entered into the System.8
Trading and Markets, pursuant to delegated Internal Distributor Fee. Currently,
principal office of the Exchange, and at
authority.25 the Exchange charges fees for both
the Commission’s Public Reference
internal and external distribution of
Room.
BZX Depth. The cost of BZX Depth for
Brent J. Fields,
II. Self-Regulatory Organization’s an Internal Distributor 9 is currently
Secretary. Statement of the Purpose of, and $1,000 per month. The Exchange also
[FR Doc. 2015–32523 Filed 12–24–15; 8:45 am] Statutory Basis for, the Proposed Rule separately charges an External
BILLING CODE 8011–01–P Change Distributor 10 of BZX Depth a flat fee of
In its filing with the Commission, the $5,000 per month. The Exchange does
Exchange included statements not charge Internal and External
SECURITIES AND EXCHANGE concerning the purpose of and basis for Distributors separate display User 11
COMMISSION the proposed rule change and discussed fees. The Exchange now proposes to
any comments it received on the increase the fee for Internal Distributors
[Release No. 34–76709; File No. SR–BATS– proposed rule change. The text of these from $1,000 per month to $1,500 per
2015–115] statements may be examined at the month. The Exchange does not proposes
places specified in Item IV below. The to amend its fees for External
Self-Regulatory Organizations; BATS Exchange has prepared summaries, set Distributors.
Exchange, Inc.; Notice of Filing and forth in Sections A, B, and C below, of Non-Display Usage Fee. The
Immediate Effectiveness of a Proposed the most significant parts of such Exchange also proposes to adopt a new
Rule Change Related to Fees for Use statements. fee for Non-Display Usage by Trading
of BATS Exchange, Inc. Platforms, which is similar to fees
A. Self-Regulatory Organization’s currently being charged by Nasdaq and
December 21, 2015. Statement of the Purpose of, and the New York Stock Exchange, Inc.
Statutory Basis for, the Proposed Rule (‘‘NYSE’’).12 As proposed, subscribers to
Pursuant to Section 19(b)(1) of the Change
Securities Exchange Act of 1934 (the (‘‘Nasdaq’’) Rule 7023(a)(2)(B), which defines Non-
‘‘Act’’),1 and Rule 19b–4 thereunder,2 1. Purpose Display Usage as ‘‘any method of accessing Depth-
notice is hereby given that on December The Exchange proposes to amend the of-Book data that involves access or use by a
17, 2015, BATS Exchange, Inc. (the machine or automated device without access or use
Market Data section of its fee schedule of a display by a natural person or persons.
‘‘Exchange’’ or ‘‘BATS’’) filed with the to: (i) adopt definitions for the terms 7 The proposed definition of Trading Platform is
Securities and Exchange Commission ‘‘Non-Display Usage’’ and ‘‘Trading identical the definition of Trading Platform under
(‘‘Commission’’) the proposed rule Platforms’’; and (ii) amend the fees for Nasdaq Rule 7023(a)(7).
8 See Exchange Rule 11.22(a) and (c).
change as described in Items I, II and III BZX Depth to increase the Internal
9 An ‘‘Internal Distributor’’ is defined as ‘‘a
below, which Items have been prepared Distributor fee and adopt a new fee for
Distributor that receives the Exchange Market Data
by the Exchange. The Exchange has Non-Display Usage. product and then distributes that data to one or
designated the proposed rule change as Definitions more Users within the Distributor’s own entity.’’
See the Exchange Fee Schedule available at
one establishing or changing a member The Exchange proposes to adopt http://batstrading.com/support/fee_schedule/bzx/.
due, fee, or other charge imposed by the definitions for the terms ‘‘Non-Display A ‘‘Distributor’’ is defined as ‘‘any entity that
Exchange under Section 19(b)(3)(A)(ii) Usage’’ and ‘‘Trading Platforms’’. The receives the Exchange Market Data product directly
of the Act 3 and Rule 19b–4(f)(2) from the Exchange or indirectly through another
proposed definitions are designed to entity and then distributes it internally or externally
thereunder,4 which renders the provide greater transparency with to a third party.’’ Id.
proposed rule change effective upon regard to how the Exchange assesses 10 An ‘‘External Distributor’’ is defined as ‘‘a
filing with the Commission. The fees for market data. Non-Display Usage Distributor that receives the Exchange Market Data
product and then distributes that data to a third
Commission is publishing this notice to would be defined as ‘‘any method of party or one or more Users outside the Distributor’s
solicit comments on the proposed rule accessing a Market Data product that own entity.’’ Id.
mstockstill on DSK4VPTVN1PROD with NOTICES
change from interested persons. involves access or use by a machine or 11 A ‘‘User’’ is defined as ‘‘a natural person, a
automated device without access or use proprietorship, corporation, partnership, or entity,
of a display by a natural person or or device (computer or other automated service),
25 17 CFR 200.30–3(a)(12). that is entitled to receive Exchange data.’’ Id.
persons.’’ 6 The term Trading Platform 12 See Nasdaq Rule 7023(d) (setting forth a
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
Trading Platform Fee of $5,000 per trading platform
5 See Exchange Rule 11.22(a) and (c). up to a maximum of three trading platforms for
3 15 U.S.C. 78s(b)(3)(A)(ii). 6 The proposed definition of Non-Display Usage depth-of-book data). See also NYSE Market Data
4 17 CFR 240.19b–4(f)(2). is substantially similar to Nasdaq Stock Market LLC Continued
VerDate Sep<11>2014 13:31 Dec 24, 2015 Jkt 238001 PO 00000 Frm 00083 Fmt 4703 Sfmt 4703 E:\FR\FM\28DEN1.SGM 28DEN1](https://thefederalregister.org/doc/80_FR_81073/page/3.svg)
Document Created: 2018-03-02 09:23:26
Document Modified: 2018-03-02 09:23:26
| 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 80825 |
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