80 FR 80851 - Self-Regulatory Organizations; EDGA 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 | 80851-80853 | |
| FR Document | 2015-32540 |
[Federal Register Volume 80, Number 248 (Monday, December 28, 2015)] [Notices] [Pages 80851-80853] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-32540] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76712; File No. SR-EDGA-2015-47] Self-Regulatory Organizations; EDGA 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, EDGA Exchange, Inc. (the ``Exchange'' or ``EDGA'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I and II [[Page 80852]] 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, EDGX Exchange, Inc. (``EDGX'') 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 EDGA Book.\11\ To the extent an order has not been executed in its entirety against the EDGA 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 EDGA 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 EDGA 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 EDGA 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 EDGA 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 EDGA 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) \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). --------------------------------------------------------------------------- [[Page 80853]] Consistent with Section 6(b)(5) of the Act,\18\ the proposed rule change, combined with the planned filing for EDGX, 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 EDGA 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-EDGA-2015-47 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-EDGA-2015-47. 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 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-EDGA-2015-47, 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. 2015-32540 Filed 12-24-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 248 / Monday, December 28, 2015 / Notices 80851
Fee Schedule ensure that the Fee fees to remain competitive with other comments more efficiently, please use
Schedule is transparent regarding the exchanges and to attract order flow to only one method. The Commission will
equitable allocation of reasonable dues, the Exchange. The Exchange believes post all comments on the Commission’s
fees, and other charges among its that the proposed rule change reflects Internet Web site (http://www.sec.gov/
members and issuers and other persons this competitive environment because it rules/sro.shtml). Copies of the
using its facilities, and are thus establishes a fee structure in a manner submission, all subsequent
consistent with the Act. that encourages market participants to amendments, all written statements
submit their order flow, to provide with respect to the proposed rule
B. Self-Regulatory Organization’s
liquidity, and to attract additional change that are filed with the
Statement on Burden on Competition
transaction volume to the Exchange. Commission, and all written
The Exchange does not believe that communications relating to the
the proposed rule change will result in C. Self-Regulatory Organization’s proposed rule change between the
any burden on competition that is not Statement on Comments on the Commission and any person, other than
necessary or appropriate in furtherance Proposed Rule Change Received From those that may be withheld from the
of the purposes of the Act. The Members, Participants, or Others public in accordance with the
Exchange believes that the proposed Written comments were neither provisions of 5 U.S.C. 552, will be
change will enhance the competiveness solicited nor received. available for Web site viewing and
of the Exchange relative to other printing in the Commission’s Public
exchanges that offer their own III. Date of Effectiveness of the
Reference Section, 100 F Street NE.,
electronic price improvement Proposed Rule Change and Timing for
Washington, DC 20549 on official
mechanism. Commission Action
business days between the hours of
The Exchange believes that the The foregoing rule change has become 10:00 a.m. and 3:00 p.m. Copies of the
proposed fees do not impact intra- effective pursuant to Section filing will also be available for
market competition notwithstanding 19(b)(3)(A)(ii) of the Act,10 and Rule inspection and copying at the principal
that the proposed per contract fees 19b–4(f)(2) 11 thereunder. At any time office of the Exchange. All comments
assessed to participants in the PRIME within 60 days of the filing of the received will be posted without change;
Auction that respond to an Agency proposed rule change, the Commission the Commission does not edit personal
Order (for purposes of this discussion, summarily may temporarily suspend identifying information from
‘‘responders’’) are greater than the per such rule change if it appears to the submissions. You should submit only
contract fees assessed to participants Commission that such action is information that you wish to make
that begin the auction process by necessary or appropriate in the public available publicly. All submissions
submitting an Agency Order (for interest, for the protection of investors, should refer to File Number SR–MIAX–
purposes of this discussion, or otherwise in furtherance of the 2015–73 and should be submitted on or
‘‘initiators’’). Initiators guarantee purposes of the Act. If the Commission before January 19, 2016.
execution of the entire Agency Order in takes such action, the Commission shall For the Commission, by the Division of
full, either at a single price or at institute proceedings to determine Trading and Markets, pursuant to delegated
multiple prices using the ‘‘auto-match’’ whether the proposed rule should be authority.12
option.9 Responders may elect not to approved or disapproved. Brent J. Fields,
respond at all, or may elect to respond
IV. Solicitation of Comments Secretary.
only at a single price, and are not
[FR Doc. 2015–32526 Filed 12–24–15; 8:45 am]
required to guarantee the execution of Interested persons are invited to
the entire order at any price. Because of BILLING CODE 8011–01–P
submit written data, views, and
this guarantee, initiators are assuming arguments concerning the foregoing,
greater risk and are providing more including whether the proposed rule SECURITIES AND EXCHANGE
liquidity in the Exchange’s markets. The change is consistent with the Act. COMMISSION
Exchange believes therefore that it is Comments may be submitted by any of
reasonable, equitable and not unfairly the following methods: [Release No. 34–76712; File No. SR–EDGA–
discriminatory, and consequently not a 2015–47]
burden on competition, to charge Electronic Comments
responders and initiators differently, as • Use the Commission’s Internet Self-Regulatory Organizations; EDGA
proposed. The Exchange believes that Exchange, Inc.; Notice of Filing and
comment form (http://www.sec.gov/
these market participants understand Immediate Effectiveness of a Proposed
rules/sro.shtml); or
that the price-improving benefits, based • Send an email to rule-comments@ Rule Change to Rule 11.6(n)(1),
on their experience with PRIME, and on sec.gov. Please include File Number SR– Routing/Posting Instructions, To
electronic price improvement MIAX–2015–73 on the subject line. Amend the Aggressive Instruction
mechanisms on other markets, justify December 21, 2015.
Paper Comments
the transaction fees associated with the Pursuant to Section 19(b)(1) of the
PRIME Auction, based upon the • Send paper comments in triplicate Securities Exchange Act of 1934 (the
disparity in risk assumed in the PRIME to Secretary, Securities and Exchange ‘‘Act’’),1 and Rule 19b–4 thereunder,2
Auction process. Commission, 100 F Street NE., notice is hereby given that on December
The Exchange notes that it operates in Washington, DC 20549. 16, 2015, EDGA Exchange, Inc. (the
mstockstill on DSK4VPTVN1PROD with NOTICES
a highly competitive market in which All submissions should refer to File ‘‘Exchange’’ or ‘‘EDGA’’) filed with the
market participants can readily favor Number SR–MIAX–2015–73. This file Securities and Exchange Commission
competing venues if they deem fee number should be included on the (‘‘Commission’’) the proposed rule
levels at a particular venue to be subject line if email is used. To help the change as described in Items I and II
excessive. In such an environment, the Commission process and review your
Exchange must continually adjust its 12 17 CFR 200.30–3(a)(12).
10 15 U.S.C. 78s(b)(3)(A)(ii). 1 15 U.S.C. 78s(b)(1).
9 See Exchange Rule 515A(a)(2)(i)(A). 11 17 CFR 240.19b–4(f)(2). 2 17 CFR 240.19b–4.
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![80852 Federal Register / Vol. 80, No. 248 / Monday, December 28, 2015 / Notices
below, which Items have been prepared BZX, EDGA and EDGX, the ‘‘BGM 2. Statutory Basis
by the Exchange. The Exchange has Affiliated Exchanges’’).6 In the context The Exchange believes that the
designated this proposal as a ‘‘non- of the Merger, the BGM Affiliated proposed rule change is consistent with
controversial’’ proposed rule change Exchanges are working to align their Section 6(b) of the Act 14 and furthers
pursuant to Section 19(b)(3)(A) of the rules and functionality, retaining only the objectives of Section 6(b)(5) of the
Act 3 and Rule 19b–4(f)(6)(iii) intended differences between the BGM Act 15 because it is designed to promote
thereunder,4 which renders it effective Affiliated Exchanges. Thus, the just and equitable principles of trade, to
upon filing with the Commission. The Exchange proposes to amend the remove impediments to and perfect the
Commission is publishing this notice to Aggressive instruction under Exchange mechanism of a free and open market
solicit comments on the proposed rule Rule 11.6(n)(1) in order to conform with and a national market system, to foster
change from interested persons. recently filed proposed rule changes by cooperation and coordination with
BYX and BZX 7 to provide a consistent persons engaged in facilitating
I. Self-Regulatory Organization’s
rule set across each of the BGM transactions in securities, and, in
Statement of the Terms of Substance of
Affiliated Exchanges.8 general, to protect investors and the
the Proposed Rule Change Users 9 may submit Limit Orders 10 to public interest. Specifically, the
The Exchange filed a proposal to the Exchange that are processed proposed changes are designed to
amend the Aggressive instruction under pursuant to Exchange Rules 11.10(a) provide Users with additional control
Exchange Rule 11.6(n)(1) to route such and 11.11, as set forth below. Rule over their orders in the context of a
orders where that order has been locked 11.10(a) describes the process by which national market system where
or crossed by other Trading Centers. The an incoming order would execute quotations may lock or cross orders
proposed rule change is based on against the EDGA Book.11 To the extent posted to the EDGA Book and to
recently filed proposed rule changes by an order has not been executed in its facilitate executions on the Exchange
BATS Exchange, Inc. (‘‘BZX’’) and entirety against the EDGA Book, Rule consistent with User instructions. Thus,
BATS Y-Exchange, Inc. (‘‘BYX’’).5 11.11 then describes the process of the proposals are directly targeted at
The text of the proposed rule change routing marketable Limit Orders to one removing impediments to and
is available at the Exchange’s Web site or more Trading Centers, including a perfecting the mechanism of a free and
at www.batstrading.com, at the description of how the Exchange treats open market and national market
principal office of the Exchange, and at any unfilled balance that returns to the system. The proposed rule change also
the Commission’s Public Reference Exchange following the first attempt to is designed to support the principles of
Room. fill the order through the routing Section 11A(a)(1) 16 of the Act in that it
II. Self-Regulatory Organization’s process. If not filled through routing, seeks to assure fair competition among
Statement of the Purpose of, and and based on the order instructions, the brokers and dealers and among
Statutory Basis for, the Proposed Rule unfilled balance of the order may be exchange markets. Lastly, the Exchange
Change posted to the EDGA Book. notes that the proposed amendments to
The Aggressive instruction subjects an
In its filing with the Commission, the the Aggressive instruction previously
order to the routing process after being
Exchange included statements existed on BZX and BYX as the
posted to the EDGA Book only if the
concerning the purpose of and basis for RECYCLE routing option.17
order is subsequently crossed by
the proposed rule change and discussed another Trading Center (rather than if route the order if an away Trading Center locks or
any comments it received on the the order is locked or crossed). Further, crosses the limit price of the order resting on the
proposed rule change. The text of these a routable Limit Order with a Non- EDGA Book. See Exchange Rule 11.6(n)(2). When
statements may be examined at the Displayed 12 instruction posted to the any order with a Super Aggressive instruction is
places specified in Item IV below. The locked by an incoming order with a Post Only
EDGA Book that is crossed by another instruction that does not remove liquidity pursuant
Exchange has prepared summaries, set accessible Trading Center will be to Rule 11.6(n)(4) below, the order with a Super
forth in Sections A, B, and C below, of automatically routed to the crossing Aggressive instruction is converted to an executable
the most significant parts of such Trading Center. The Exchange proposes order and will remove liquidity against such
incoming order (‘‘liquidity swap functionality’’). Id.
statements. to modify the Aggressive instruction to Once amended, the only difference between the
A. Self-Regulatory Organization’s also provide that, where the order is Aggressive and Super Aggressive instructions
Statement of the Purpose of, and the locked by another accessible Trading would be that the liquidity swap functionality
described above would be available to an order
Statutory Basis for, the Proposed Rule Center, it would be automatically routed subject to the Super Aggressive instruction and not
Change to the locking Trading Center. The available to an order subject to the Aggressive
proposed amendment would also apply instruction.
1. Purpose to orders with a Non-Displayed 14 15 U.S.C. 78f(b).
15 15 U.S.C. 78f(b)(5).
In early 2014, the Exchange and its instruction and Aggressive 16 15 U.S.C. 78k–1(a)(1).
affiliate, EDGX Exchange, Inc. (‘‘EDGX’’) instruction.13 17 See Securities Exchange Act Release Nos.
received approval to effect a merger (the 59967 (May 21, 2009), 74 FR 25793 (May 29, 2009)
6 See Securities Exchange Act Release No. 71449
‘‘Merger’’) of the Exchange’s parent (SR–BATS–2009–015) (proposing to allow the
(January 30, 2014), 79 FR 6961 (February 5, 2014) designation of an order as eligible for re-routing
company, Direct Edge Holdings LLC, (SR–EDGX–2013–43; SR–EDGA–2013–34). after being posted to the BATS Book if another
with BATS Global Markets, Inc., the 7 See supra note 5. Trading Center has locked or crossed the posted
parent of BZX and BYX (together with 8 The Exchange notes that EDGA intends to file order); 62404 (June 30, 2010), 75 FR 39303 (July 8,
an identical proposal with the Commission. 2010) (SR–BATS–2010–017) (naming the
mstockstill on DSK4VPTVN1PROD with NOTICES
3 15 9 The term ‘‘User’’ means ‘‘any Member or designation of an order as eligible for re-routing
U.S.C. 78s(b)(3)(A). after being posted to the BATS Book if another
4 17 CFR 240.19b–4(f)(6)(iii). Sponsored Participant who is authorized to obtain
access to the System pursuant to Rule 11.3.’’ See Trading Center has locked or crossed the posted
5 See Securities Exchange Act Release Nos. 76623
Exchange Rule 1.5(ee). order as the RECYCLE routing option); and 63097
(December 11, 2015) (SR–BATS–2015–112), and 10 See Exchange Rule 11.8(b).
(October 13, 2010), 75 FR 64767 (October 20, 2010)
76625 (December 11, 2015) (SR–BYX–2015–49) (SR–BATS–2010–002) [sic] (naming the designation
11 See Exchange Rule 1.5(d).
(amending the Aggressive Re-Route instruction of an order as eligible for re-routing after being
12 See Exchange Rule 11.6(e)(2).
under BYX and BZX Rules 11.13(b)(4)(A) to route posted to the BATS Book if another Trading Center
such orders where that order has been locked or 13 The Exchange also provides the Super has locked or crossed the posted order as the
crossed by other Trading Centers). Aggressive instruction which directs the System to RECYCLE routing option).
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![Federal Register / Vol. 80, No. 248 / Monday, December 28, 2015 / Notices 80853
Consistent with Section 6(b)(5) of the 19(b)(3)(A) of the Act 19 and Rule 19b– Comments may be submitted by any of
Act,18 the proposed rule change, 4(f)(6) thereunder.20 the following methods:
combined with the planned filing for A proposed rule change filed
EDGX, would allow the BGM Affiliated pursuant to Rule 19b–4(f)(6) under the Electronic Comments
Exchanges to provide a consistent set of Act 21 normally does not become • Use the Commission’s Internet
rules as it relates to the routing of orders operative for 30 days after the date of its
comment form (http://www.sec.gov/
that are locked or crossed by a Trading filing. However, Rule 19b–4(f)(6)(iii) 22
permits the Commission to designate a rules/sro.shtml); or
Center. Consistent rules, in turn, will
simplify the regulatory requirements for shorter time if such action is consistent • Send an email to rule-comments@
Members of the Exchange that are also with the protection of investors and the sec.gov. Please include File Number SR–
participants on EDGA, BYZ and/or BZX. public interest. The Exchange has asked EDGA–2015–47 on the subject line.
The proposed rule change would the Commission to waive the 30-day
operative delay so that the proposal may Paper Comments
provide greater harmonization between
rules of similar purpose on the BGM become operative immediately upon • Send paper comments in triplicate
Affiliated Exchanges, resulting in filing. The Exchange stated that waiver to Secretary, Securities and Exchange
greater uniformity and less burdensome of the operative delay will allow the Commission, 100 F Street NE.,
and more efficient regulatory Exchange to immediately provide Users
Washington, DC 20549–1090.
compliance and understanding of with additional control over their orders
Exchange Rules. As such, the proposed in the context of a national market All submissions should refer to File
rule change would foster cooperation system where quotations may lock or Number SR–EDGA–2015–47. This file
cross orders posted to the EDGA Book number should be included on the
and coordination with persons engaged
and to facilitate executions on the subject line if email is used. To help the
in facilitating transactions in securities
Exchange consistent with User Commission process and review your
and would remove impediments to and
instructions.23 The Commission comments more efficiently, please use
perfect the mechanism of a free and
believes the waiver of the operative only one method. The Commission will
open market and a national market
delay is consistent with the protection post all comments on the Commission’s
system.
of investors and the public interest. Internet Web site (http://www.sec.gov/
B. Self-Regulatory Organization’s Therefore, the Commission hereby
rules/sro.shtml). Copies of the
Statement on Burden on Competition waives the operative delay and
submission, all subsequent
designates the proposal operative upon
The Exchange does not believe that filing.24 amendments, all written statements
the proposed rule change will result in At any time within 60 days of the with respect to the proposed rule
any burden on competition that is not filing of the proposed rule change, the change that are filed with the
necessary or appropriate in furtherance Commission summarily may Commission, and all written
of the purposes of the Act. The temporarily suspend such rule change if communications relating to the
Exchange believes that proposed it appears to the Commission that such proposed rule change between the
amendment to the Aggressive action is necessary or appropriate in the Commission and any person, other than
functionality encourages competition by public interest, for the protection of those that may be withheld from the
increasing the likelihood of executions investors, or otherwise in furtherance of public in accordance with the
of orders that have been posted to the the purposes of the Act. If the provisions of 5 U.S.C. 552, will be
Exchange. The increased likelihood of Commission takes such action, the available for Web site viewing and
an execution where the order is locked Commission shall institute proceedings printing in the Commission’s Public
by a quotation on a Trading Center to determine whether the proposed rule Reference Room, 100 F Street NE.,
should attract additional order flow to change should be approved or Washington, DC 20549, on official
the Exchange disapproved. business days between the hours of
C. Self-Regulatory Organization’s IV. Solicitation of Comments 10:00 a.m. and 3:00 p.m. Copies of the
Statement on Comments on the filing also will be available for
Interested persons are invited to
Proposed Rule Change Received From inspection and copying at the principal
submit written data, views, and
Members, Participants, or Others office of the Exchange. All comments
arguments concerning the foregoing,
received will be posted without change;
The Exchange has neither solicited including whether the proposed rule
change is consistent with the Act. the Commission does not edit personal
nor received written comments on the identifying information from
proposed rule change. 19 15 submissions. You should submit only
U.S.C. 78s(b)(3)(A).
III. Date of Effectiveness of the 20 17 CFR 240.19b–4(f)(6). As required under Rule information that you wish to make
Proposed Rule Change and Timing for 19b–4(f)(6)(iii), the Exchange provided the available publicly. All submissions
Commission with written notice of its intent to file should refer to File Number SR–EDGA–
Commission Action the proposed rule change, along with a brief
description and the text of the proposed rule 2015–47, and should be submitted on or
Because the proposed rule change change, at least five business days prior to the date before January 19, 2016.
does not (i) significantly affect the of filing of the proposed rule change, or such
For the Commission, by the Division of
protection of investors or the public shorter time as designated by the Commission.
21 17 CFR 240.19b–4(f)(6). Trading and Markets, pursuant to delegated
interest; (ii) impose any significant
mstockstill on DSK4VPTVN1PROD with NOTICES
22 17 CFR 240.19b–4(f)(6)(iii). authority.25
burden on competition; and (iii) become 23 The Exchange further stated that it will provide
Brent J. Fields,
operative for 30 days from the date on Members with reasonable advance notice of the
which it was filed, or such shorter time proposed rule change’s implementation date. Secretary.
as the Commission may designate, it has 24 For purposes only of waiving the 30-day [FR Doc. 2015–32540 Filed 12–24–15; 8:45 am]
become effective pursuant to Section operative delay, the Commission has also BILLING CODE 8011–01–P
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
18 15 U.S.C. 78f(b)(5). 15 U.S.C. 78c(f). 25 17 CFR 200.30–3(a)(12).
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Document Created: 2018-03-02 09:24:12
Document Modified: 2018-03-02 09:24:12
| 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 80851 |
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