80 FR 80865 - Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 21.8, Order Display and Book Processing
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 248 (December 28, 2015)
Federal Register Volume 80, Issue 248 (December 28, 2015)
| Page Range | 80865-80867 | |
| FR Document | 2015-32524 |
[Federal Register Volume 80, Number 248 (Monday, December 28, 2015)] [Notices] [Pages 80865-80867] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-32524] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76715; File No. SR-EDGX-2015-65] Self-Regulatory Organizations; EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 21.8, Order Display and Book Processing 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 authorize the Exchange's equity options platform (``EDGX Options'') to make a modification to Rule 21.8 (Order Display and Book Processing). [[Page 80866]] 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 The Exchange is proposing to modify Rule 21.8, Order Display and Book Processing, which sets forth the priority rules applicable to EDGX Options as well as the Exchange's program for accepting Directed Orders. Specifically, Rule 21.8 describes the general priority rules for EDGX Options, including that quotes and orders are prioritized by price and then on a pro-rata basis according to size. Rule 21.8 also describes additional priority overlays, including special priority provisions for Customer orders, Directed Market Makers and Primary Market Makers. The purpose of this rule filing is to make a minor modification to the Directed Order program, as described below. Pursuant to Rule 21.8(f), an Options Member may designate a Market Maker (``Directed Market Maker'') on orders it enters into the Exchange's system (``Directed Orders''). A Directed Market Maker receives certain participation entitlements described in Rule 21.8 subject to certain conditions, which conditions are also set forth in the Rule. For instance, the Directed Market Maker must be registered with the Exchange as a Market Maker in the relevant option class at the time of receipt of the Directed Order to be eligible to receive the Directed Market Maker participation entitlement. One current limitation on the Directed Market Maker priority overlay is that only Customer Orders are eligible to be directed by an Options Member to a Directed Market Maker. The Exchange proposes to eliminate this limitation to align more closely with the directed order rules applicable to options trading on the options trading platform of NASDAQ OMX BX, Inc. (``BX Options'') \5\ and other options exchanges.\6\ Accordingly, as proposed, an Options Member could direct any order to a Directed Market Maker, not just a Customer Order. --------------------------------------------------------------------------- \5\ See BX Options, Chapter VI, Section 10(1)(C)(2)(iii), which does not limit ``Directed Orders'' on BX Options to ``Customer'' orders. A ``Directed Order'' is defined in BX Options Chapter VI, Section 1(e)(2) as ``an order to buy or sell which has been directed, provided it is properly marked as such, to a particular market maker. . . .'' A ``Customer'' is defined in BX Options Chapter 1, Section 1(a)(22) and is equivalent to a Customer on the Exchange. \6\ See, e.g., NYSE Arca Rules 6.1A(4) and 6.76A; NASDAQ PHLX Rules 1014(g)(vii) and 1080(l). --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that its proposal is consistent with the requirements of the Act and the rules and regulations thereunder that are applicable to a national securities exchange, and, in particular, with the requirements of Section 6(b) of the Act.\7\ In particular, the proposal is consistent with Section 6(b)(5) of the Act \8\ because it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, to remove impediments to, and perfect the mechanism of, a free and open market and a national market system and, in general, to protect investors and the public interest. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78f(b). \8\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The proposed rule change will allow the Exchange to accept Directed Orders on the EDGX Options platform without restricting such orders to Customer Orders. The Exchange believes that the change is appropriate and consistent with the Act because it recognizes that orders of other participants, not just Customers, could potentially be directed to a Directed Market Maker. As noted above, other options exchanges operate with similar directed order programs.\9\ --------------------------------------------------------------------------- \9\ See supra notes 5 and 6. --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed rule change is not designed to address any competitive issues but rather to make a modification to the Exchange's Directed Order program. As noted above, the change would make the Exchange's rule similar to that of other options exchanges.\10\ The Exchange believes that the proposed change will have a positive competitive impact by allowing additional Directed Orders to be submitted to the Exchange. --------------------------------------------------------------------------- \10\ Id. --------------------------------------------------------------------------- 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 written comments from members or other interested parties. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: (A) Significantly affect the protection of investors or the public interest; (B) impose any significant burden on competition; and (C) by its terms, 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 \11\ and paragraph (f)(6) of Rule 19b-4 thereunder,\12\ the Exchange has designated this rule filing as non-controversial. The Exchange has given the Commission written notice of its intent to file the proposed rule change, along with a brief description and 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. --------------------------------------------------------------------------- \11\ 15 U.S.C. 78s(b)(3)(A). \12\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- 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: (1) Necessary or appropriate in the public interest; (2) for the protection of investors; or (3) 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 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 proposal is consistent with the Act. Comments may [[Page 80867]] 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 rule-comments@sec.gov. Please include File No. SR-EDGX-2015-65 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-EDGX-2015-65. 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 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-EDGX-2015-65 and should be submitted on or before January 19, 2016. --------------------------------------------------------------------------- \13\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\13\ Brent J. Fields, Secretary. [FR Doc. 2015-32524 Filed 12-24-15; 8:45 am] BILLING CODE 8011-01-P
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policies. The Fund will seek, where Commission, and all written rule change, as modified by Amendment
possible, to use counterparties whose communications relating to the Nos. 1, 3, 4, 5, and 6, on an accelerated
financial status is such that the risk of proposed rule change between the basis.
default is reduced. The Fund will Commission and any person, other than
VI. Conclusion
segregate or ‘‘earmark’’ assets those that may be withheld from the
determined to be liquid by the Adviser public in accordance with the It is therefore ordered, pursuant to
in accordance with procedures provisions of 5 U.S.C. 552, will be Section 19(b)(2) of the Exchange Act,55
established by the Board and in available for Web site viewing and that the proposed rule change (SR–
accordance with the 1940 Act (or, as printing in the Commission’s Public NYSEArca–2015–73), as modified by
permitted by applicable regulation, Reference Room, 100 F Street NE., Amendment Nos. 1, 3, 4, 5, and 6
enter into certain offsetting positions) to Washington, DC 20549 on official thereto, be, and it hereby is, approved
cover its obligations under derivative business days between the hours of on an accelerated basis.
instruments. In addition, the Fund will 10:00 a.m. and 3:00 p.m. Copies of the For the Commission, by the Division of
include appropriate risk disclosure in filing also will be available for Trading and Markets, pursuant to delegated
its offering documents, including inspection and copying at the principal authority.56
leveraging risk. To mitigate leveraging office of the Exchange. All comments Brent J. Fields,
risk, the Adviser will segregate or received will be posted without change; Secretary.
‘‘earmark’’ liquid assets or otherwise the Commission does not edit personal [FR Doc. 2015–32528 Filed 12–24–15; 8:45 am]
cover the transactions that may give rise identifying information from
BILLING CODE 8011–01–P
to such risk. submissions. You should submit only
This approval order is based on all of information that you wish to make
the Exchange’s representations, available publicly. All submissions SECURITIES AND EXCHANGE
including those set forth above and in should refer to File Number SR– COMMISSION
the Notice. The Commission notes that NYSEArca–2015–73 and should be
the Fund and the Shares must comply submitted on or before January 19, 2016. [Release No. 34–76715; File No. SR–EDGX–
with the requirements of NYSE Arca 2015–65]
V. Accelerated Approval of Proposed
Equities Rule 8.600 to be initially and
Rule Change, as Modified by Self-Regulatory Organizations; EDGX
continuously listed and traded on the
Amendment Nos. 1, 3, 4, 5, and 6 Exchange, Inc.; Notice of Filing and
Exchange.
The Commission finds good cause to Immediate Effectiveness of a Proposed
IV. Solicitation of Comments on approve the proposed rule change, as Rule Change to Rule 21.8, Order
Amendment Nos. 3, 4, 5, and 6 modified by Amendment Nos. 1, 3, 4, 5 Display and Book Processing
Interested persons are invited to and 6, prior to the 30th day after the December 21, 2015.
submit written data, views, and date of publication of notice of Pursuant to Section 19(b)(1) of the
arguments concerning the foregoing, Amendment Nos. 3, 4, 5, and 6 in the Securities Exchange Act of 1934 (the
including whether Amendment Nos. 3, Federal Register. Amendment Nos. 3, 4, ‘‘Act’’),1 and Rule 19b–4 thereunder,2
4, 5, and 6 to the proposed rule change 5, and 6 revised the proposed rule
notice is hereby given that on December
are consistent with the Act. Comments change by: (1) Modifying, and defining,
16, 2015, EDGX Exchange, Inc. (the
may be submitted by any of the the Fixed Income Instruments in which
‘‘Exchange’’ or ‘‘EDGX’’) filed with the
following methods: the Fund will invest; (2) representing
Securities and Exchange Commission
that normally corporate debt securities
Electronic Comments (‘‘Commission’’) the proposed rule
and bank loan and corporate loan assets
• Use the Commission’s Internet change as described in Items I and II
will each have a certain par amount
comment form (http://www.sec.gov/ below, which Items have been prepared
outstanding; (3) modifying the
rules/sro.shtml); or by the Exchange. The Exchange has
investment restrictions of the Fund; (4)
• Send an email to rule- designated this proposal as a ‘‘non-
clarifying price information in, and
comments@sec.gov. Please include File controversial’’ proposed rule change
adding assets to, the Availability of
Number SR–NYSEArca–2015–73 on the pursuant to Section 19(b)(3)(A) of the
Information section, and (5) noting that
subject line. Act 3 and Rule 19b–4(f)(6)(iii)
trading surveillances may be
thereunder,4 which renders it effective
Paper Comments administered by the regulatory staff of
upon filing with the Commission. The
the Exchange.
• Send paper comments in triplicate Amendment Nos. 3, 4, 5, and 6 Commission is publishing this notice to
to Secretary, Securities and Exchange supplement the proposed rule change solicit comments on the proposed rule
Commission, 100 F Street NE., by, among other things, clarifying the change from interested persons.
Washington, DC 20549–1090. scope of the Fund’s permitted I. Self-Regulatory Organization’s
All submissions should refer to File investments and investment restrictions Statement of the Terms of Substance of
Number SR–NYSEArca–2015–73. This and providing additional information the Proposed Rule Change
file number should be included on the about the availability of pricing
subject line if email is used. To help the The Exchange filed a proposal to
information for the Fund’s underlying authorize the Exchange’s equity options
Commission process and review your assets. They also help the Commission
comments more efficiently, please use platform (‘‘EDGX Options’’) to make a
evaluate whether the listing and trading modification to Rule 21.8 (Order
mstockstill on DSK4VPTVN1PROD with NOTICES
only one method. The Commission will of the Shares of the Fund would be
post all comments on the Commission’s Display and Book Processing).
consistent with the protection of
Internet Web site (http://www.sec.gov/ investors and the public interest. 55 15 U.S.C. 78s(b)(2).
rules/sro.shtml). Copies of the Accordingly, the Commission finds 56 17 CFR 200.30–3(a)(12).
submission, all subsequent good cause, pursuant to Section 19(b)(2) 1 15 U.S.C. 78s(b)(1).
amendments, all written statements of the Act,54 to approve the proposed 2 17 CFR 240.19b–4.
with respect to the proposed rule 3 15 U.S.C. 78s(b)(3)(A).
change that are filed with the 54 15 U.S.C. 78s(b)(2). 4 17 CFR 240.19b–4(f)(6)(iii).
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![Federal Register / Vol. 80, No. 248 / Monday, December 28, 2015 / Notices 80867
be submitted by any of the following SECURITIES AND EXCHANGE places specified in Item IV below. The
methods: COMMISSION Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
Electronic Comments [Release No. 34–76713; File No. SR–EDGX–
the most significant parts of such
2015–62]
• Use the Commission’s Internet statements.
comment form (http://www.sec.gov/ Self-Regulatory Organizations; EDGX A. Self-Regulatory Organization’s
rules/sro.shtml); or Exchange, Inc.; Notice of Filing and Statement of the Purpose of, and
Immediate Effectiveness of a Proposed Statutory Basis for, the Proposed Rule
• Send an email to rule-comments@
Rule Change Related to Fees for Use Change
sec.gov. Please include File No. SR–
of EDGX Exchange, Inc.
EDGX–2015–65 on the subject line. 1. Purpose
December 21, 2015.
Paper Comments The Exchange proposes to amend the
Pursuant to Section 19(b)(1) of the Market Data section of its fee schedule
• Send paper comments in triplicate Securities Exchange Act of 1934 (the to: (i) Adopt definitions for the terms
to Secretary, Securities and Exchange ‘‘Act’’),1 and Rule 19b–4 thereunder,2 ‘‘Non-Display Usage’’ and ‘‘Trading
Commission, 100 F Street NE., notice is hereby given that on December Platforms’’; and (ii) amend the fees for
Washington, DC 20549–1090. 17, 2015, EDGX Exchange, Inc. (the EDGX Depth to increase the Internal
‘‘Exchange’’ or ‘‘EDGX’’) filed with the Distributor fee and adopt a new fee for
All submissions should refer to File No. Securities and Exchange Commission Non-Display Usage.
SR–EDGX–2015–65. This file number (‘‘Commission’’) the proposed rule
should be included on the subject line change as described in Items I, II and III Definitions
if email is used. To help the below, which Items have been prepared The Exchange proposes to adopt
Commission process and review your by the Exchange. The Exchange has definitions for the terms ‘‘Non-Display
comments more efficiently, please use designated the proposed rule change as Usage’’ and ‘‘Trading Platforms’’. The
only one method. The Commission will one establishing or changing a member proposed definitions are designed to
post all comments on the Commission’s due, fee, or other charge imposed by the provide greater transparency with
Internet Web site (http://www.sec.gov/ Exchange under Section 19(b)(3)(A)(ii) regard to how the Exchange assesses
rules/sro.shtml). Copies of the of the Act 3 and Rule 19b–4(f)(2) fees for market data. Non-Display Usage
submission, all subsequent thereunder,4 which renders the would be defined as ‘‘any method of
amendments, all written statements proposed rule change effective upon accessing a Market Data product that
with respect to the proposed rule filing with the Commission. The involves access or use by a machine or
change that are filed with the Commission is publishing this notice to automated device without access or use
Commission, and all written solicit comments on the proposed rule of a display by a natural person or
change from interested persons. persons.’’ 5 The term Trading Platform
communications relating to the
proposed rule change between the I. Self-Regulatory Organization’s would be defined as ‘‘any execution
Commission and any person, other than Statement of the Terms of Substance of platform operated as or by a registered
those that may be withheld from the the Proposed Rule Change National Securities Exchange (as
defined in Section 3(a)(1) of the
public in accordance with the The Exchange filed a proposal to Exchange Act), an Alternative Trading
provisions of 5 U.S.C. 552, will be amend the Market Data section of its fee System (as defined in Rule 300(a) of
available for Web site viewing and schedule to: (i) Adopt definitions for the Regulation ATS), or an Electronic
printing in the Commission’s Public terms ‘‘Non-Display Usage’’ and Communications Network (as defined in
Reference Room, 100 F Street NE., ‘‘Trading Platforms’’; and (ii) amend the Rule 600(b)(23) of Regulation NMS).’’ 6
Washington, DC 20549, on official fees for EDGX Depth, to increase the
business days between the hours of Internal Distributor fee and adopt a new EDGX Depth Fees
10:00 a.m. and 3:00 p.m. Copies of such fee for Non-Display Usage. EDGX Depth is an uncompressed
filing will also be available for The text of the proposed rule change market data feed that provides depth-of-
inspection and copying at the principal is available at the Exchange’s Web site book quotations and execution
office of the Exchange. All comments at www.batstrading.com, at the information based on equity orders
received will be posted without change; principal office of the Exchange, and at entered into the System.7
the Commission does not edit personal the Commission’s Public Reference Internal Distributor Fee. Currently,
identifying information from Room. the Exchange charges fees for both
submissions. You should submit only II. Self-Regulatory Organization’s internal and external distribution of
information that you wish to make Statement of the Purpose of, and EDGX Depth. The cost of EDGX Depth
available publicly. All submissions Statutory Basis for, the Proposed Rule for an Internal Distributor 8 is currently
should refer to File No. SR–EDGX– Change 5 The proposed definition of Non-Display Usage
2015–65 and should be submitted on or
In its filing with the Commission, the is substantially similar to Nasdaq Stock Market LLC
before January 19, 2016. Exchange included statements (‘‘Nasdaq’’) Rule 7023(a)(2)(B), which defines Non-
Display Usage as ‘‘any method of accessing Depth-
For the Commission, by the Division of concerning the purpose of and basis for of-Book data that involves access or use by a
Trading and Markets, pursuant to delegated the proposed rule change and discussed machine or automated device without access or use
mstockstill on DSK4VPTVN1PROD with NOTICES
authority.13 any comments it received on the of a display by a natural person or persons.
6 The proposed definition of Trading Platform is
Brent J. Fields, proposed rule change. The text of these
identical the definition of Trading Platform under
Secretary. statements may be examined at the Nasdaq Rule 7023(a)(7).
[FR Doc. 2015–32524 Filed 12–24–15; 8:45 am] 7 See Exchange Rule 13.8(a).
1 15 U.S.C. 78s(b)(1). 8 An ‘‘Internal Distributor’’ is defined as ‘‘a
BILLING CODE 8011–01–P 2 17 CFR 240.19b–4. Distributor that receives the Exchange Market Data
3 15 U.S.C. 78s(b)(3)(A)(ii).
product and then distributes that data to one or
13 17 CFR 200.30–3(a)(12). 4 17 CFR 240.19b–4(f)(2). Continued
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Document Created: 2018-03-02 09:24:18
Document Modified: 2018-03-02 09:24:18
| 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 80865 |
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