80 FR 8916 - Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use of BATS Y-Exchange, Inc.

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 33 (February 19, 2015)

Page Range		8916-8917
FR Document		2015-03401
Federal Register, Volume 80 Issue 33 (Thursday, February 19, 2015)
[Federal Register Volume 80, Number 33 (Thursday, February 19, 2015)]
[Notices]
[Pages 8916-8917]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-03401]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74263; File No. SR-BYX-2015-08]


Self-Regulatory Organizations; BATS Y-Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change Related to 
Fees for Use of BATS Y-Exchange, Inc.

February 12, 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 February 2, 2015, BATS Y-Exchange, Inc. (the ``Exchange'' or 
``BYX'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I, II, 
and III below, which Items have been prepared by the Exchange. The 
Exchange has designated the proposed rule change as one establishing or 
changing a member due, fee, or other charge imposed by the Exchange 
under Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) 
thereunder,\4\ which renders the proposed rule change effective upon 
filing with the Commission. The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    The Exchange filed a proposal to amend the fee schedule applicable 
to Members \5\ and non-members of the Exchange pursuant to BYX Rules 
15.1(a) and (c). Changes to the fee schedule pursuant to this proposal 
are effective upon filing.
---------------------------------------------------------------------------

    \5\ The term ``Member'' is defined as ``any registered broker or 
dealer that has been admitted to membership in the Exchange.'' See 
Exchange Rule 1.5(n).
---------------------------------------------------------------------------

    The text of the proposed rule change is available at the Exchange's 
Web site at www.batstrading.com, at the principal office of the 
Exchange, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
Sections A, B, and C below, of the most significant parts of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend its fee schedule to remove the 
reference to ROLF from fee code BO. Fee code BO currently provides that 
the Exchange will charge $0.0030 per share for any order routed using 
ROLF or Destination Specific routing strategy unless otherwise 
specified. Under the ROLF routing strategy, an order will check the 
Exchange for available shares and then will be sent to LavaFlow ECN 
(``LavaFlow''). This change is being proposed in response to LavaFlow's 
announcement that it will cease market operations and its last day of 
trading will be Friday, January 30, 2015. As such, beginning on 
February 2, 2015, the Exchange will no longer route orders to LavaFlow. 
As proposed, the Exchange would continue to charge $0.0030 per share 
for orders routed using a Destination Specific routing strategy.
    The Exchange proposes to implement the amendments to its fee 
schedule effective February 2, 2015.
2. Statutory Basis
    The Exchange believes that the proposed rule change 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 of the Act.\6\ 
Specifically, the Exchange believes that the proposed rule change is 
consistent with Sections 6(b)(4) of the Act and 6(b)(5) of the Act,\7\ 
in that it provides for the equitable allocation of reasonable dues, 
fees and other charges among members and other persons using any 
facility or system which the Exchange operates or controls. The 
Exchange notes that it operates in a highly competitive market in which 
market participants can readily direct order flow to competing venues 
if they deem fee levels at a particular venue to be excessive.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f.
    \7\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

    The Exchange believes that its proposal to eliminate ROLF from fee 
code BO represents an equitable allocation of reasonable dues, fees, 
and other charges among Members and other persons using its facilities. 
The proposed change is in response to LavaFlow's announcement that it 
will cease market operations and its last day of trading will be 
Friday, January 30, 2015. The Exchange notes that the proposed change 
is not designed to amend any fee or rebate, nor alter the manner in 
which the Exchange assesses fees and rebates. As of February 2, 2015, 
the Exchange will no longer route orders to LavaFlow and, therefore, 
proposes to remove ROLF from the fee schedule, which will make the fee 
schedule clearer and less confusing for investors as well as help to 
eliminate potential investor confusion, thereby removing impediments to 
and perfecting the mechanism of a free and open market and a national 
market system, and, in general, protecting investors and the public 
interest.

B. Self-Regulatory Organization's Statement on Burden on Competition

    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, as amended. The 
Exchange also believes that its proposal to remove ROLF from fee code 
BO would not affect intermarket nor intramarket competition because the 
change is not designed to amend any fee or rebate or to alter the 
manner in which the Exchange assesses fees or calculates rebates. It is 
simply proposed in response to LavaFlow's announcement that it will 
cease market operations following the close of business on Friday, 
January 30, 2015. As stated above, the Exchange notes that it operates 
in a highly competitive market in which market participants can readily 
direct order flow to competing

[[Page 8917]]

venues if they deem fee structures to be unreasonable or excessive.

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \8\ and paragraph (f)(2) of Rule 19b-4 
thereunder.\9\ 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 should be approved or disapproved.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-BYX-2015-08 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-BYX-2015-08. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549, on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-BYX-2015-08 and should be 
submitted on or before March 12, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Brent J. Fields,
Secretary.
[FR Doc. 2015-03401 Filed 2-18-15; 8:45 am]
BILLING CODE 8011-01-P
Federal Register / Vol. 80, No. 33 / Thursday, February 19, 2015 / Notices 8917

venues if they deem fee structures to be submission, all subsequent published for comment in the Federal
unreasonable or excessive. amendments, all written statements Register on December 30, 2014.3 The
with respect to the proposed rule Commission did not receive any
C. Self-Regulatory Organization’s
change that are filed with the comments on the proposed rule change.
Statement on Comments on the
Commission, and all written This order approves the proposed rule
Proposed Rule Change Received From
communications relating to the change.
Members, Participants, or Others
proposed rule change between the
The Exchange has not solicited, and I. Description
Commission and any person, other than
does not intend to solicit, comments on those that may be withheld from the This rule change was filed in
this proposed rule change. The public in accordance with the connection with OCC’s proposed change
Exchange has not received any written provisions of 5 U.S.C. 552, will be to its operations concerning the
comments from members or other available for Web site viewing and clearance of confirmed trades executed
interested parties. printing in the Commission’s Public in overnight trading sessions offered by
Reference Room, 100 F Street NE., exchanges for which OCC provides
III. Date of Effectiveness of the clearance and settlement services. OCC
Proposed Rule Change and Timing for Washington, DC 20549, on official
business days between the hours of currently clears overnight trading
Commission Action activity for CBOE Futures Exchange,
10:00 a.m. and 3:00 p.m. Copies of such
The foregoing rule change has become filing also will be available for LLC (‘‘CFE’’).4 The total number of
effective pursuant to Section 19(b)(3)(A) inspection and copying at the principal trades submitted to OCC from overnight
of the Act 8 and paragraph (f)(2) of Rule office of the Exchange. All comments trading sessions is nominal, typically
19b–4 thereunder.9 At any time within received will be posted without change; less than 3,000 contracts per session.
60 days of the filing of the proposed rule the Commission does not edit personal However, OCC has recently observed an
change, the Commission summarily may identifying information from industry trend whereby exchanges are
temporarily suspend such rule change if submissions. You should submit only offering overnight trading sessions
it appears to the Commission that such information that you wish to make beyond traditional hours. Exchanges
action is necessary or appropriate in the available publicly. All submissions offering overnight trading sessions have
public interest, for the protection of should refer to File Number SR–BYX– indicated to OCC that such sessions
investors, or otherwise in furtherance of 2015–08 and should be submitted on or benefit market participants by providing
the purposes of the Act. If the before March 12, 2015. additional price transparency and
Commission takes such action, the hedging opportunities for products
For the Commission, by the Division of traded in such sessions, which, in turn,
Commission shall institute proceedings Trading and Markets, pursuant to delegated
to determine whether the proposed rule promotes market stability.5 In light of
authority.10
should be approved or disapproved. this trend, OCC proposed to implement
Brent J. Fields,
a framework for clearing trades executed
IV. Solicitation of Comments Secretary. in such sessions that includes: (1)
Interested persons are invited to [FR Doc. 2015–03401 Filed 2–18–15; 8:45 am] Qualification criteria used to approve
submit written data, views and BILLING CODE 8011–01–P clearing members for overnight trading
arguments concerning the foregoing, sessions, (2) systemic controls to
including whether the proposed rule identify trades executed during
change is consistent with the Act. SECURITIES AND EXCHANGE overnight trading sessions by clearing
Comments may be submitted by any of COMMISSION members not approved for such
the following methods: [Release No. 34–74268; File No. SR–OCC– sessions, (3) enhancements to OCC’s
2014–24] overnight monitoring of trades
Electronic Comments submitted by exchanges during
• Use the Commission’s Internet Self-Regulatory Organizations; The overnight trading sessions, (4)
comment form (http://www.sec.gov/ Options Clearing Corporation; Order enhancements to OCC’s credit controls
rules/sro.shtml); or Approving Proposed Rule Change with respect to monitoring clearing
• Send an email to rule-comments@ Concerning Extended and Overnight members’ credit risk during overnight
sec.gov. Please include File Number SR– Trading Sessions trading sessions, including procedures
BYX–2015–08 on the subject line. for contacting an exchange offering
February 12, 2015.
overnight trading sessions in order to
Paper Comments On December 12, 2014, The Options
invoke use of the exchange’s kill switch,
• Send paper comments in triplicate Clearing Corporation (‘‘OCC’’) filed with
and (5) taking appropriate disciplinary
to Secretary, Securities and Exchange the Securities and Exchange
action against clearing members who
Commission, 100 F Street NE., Commission (‘‘Commission’’) the attempt to clear during the overnight
Washington, DC 20549–1090. proposed rule change SR–OCC–2014–24 trading sessions without first obtaining
pursuant to Section 19(b)(1) of the requisite approvals. These changes
All submissions should refer to File
Securities Exchange Act of 1934 (described in greater detail below) are
Number SR–BYX–2015–08. This file
(‘‘Act’’) 1 and Rule 19b–4 thereunder.2 designed to reduce and mitigate the
number should be included on the
The proposed rule change was
subject line if email is used. To help the
3 Securities Exchange Act Release No. 73907
Commission process and review your 10 17 CFR 200.30–3(a)(12).
emcdonald on DSK67QTVN1PROD with NOTICES

(December 22, 2014), 79 FR 78543 (December 30,
comments more efficiently, please use 1 15 U.S.C. 78s(b)(1).
2014) (SR–OCC–2014–24).
only one method. The Commission will 2 17 CFR 240.19b–4. OCC also filed this change 4 ELX Futures LP (‘‘ELX’’) previously submitted
post all comments on the Commission’s as an advance notice under Section 806(e)(1) of the overnight trading activity to OCC, but currently
Internet Web site (http://www.sec.gov/ Payment, Clearing, and Settlement Supervision Act does not submit trades from overnight trading
of 2010. 12 U.S.C. 5465(e)(1). Securities Exchange sessions to OCC. OCC will re-evaluate ELX’s risk
rules/sro.shtml). Copies of the Act Release No. 74073 (January 15, 2015), 80 FR controls in the event ELX re-institutes its overnight
3287 (January 22, 2014) (SR–OCC–2014–812). The trading sessions.
8 15 U.S.C. 78s(b)(3)(A). Commission did not receive any comments on the 5 See CFE–2014–010 at http://cfe.cboe.com/
9 17 CFR 240.19b–4(f)(2). advance notice. publish/CFErulefilings/SR-CFE-2014-010.pdf.

VerDate Sep<11>2014 18:56 Feb 18, 2015 Jkt 235001 PO 00000 Frm 00075 Fmt 4703 Sfmt 4703 E:\FR\FM\19FEN1.SGM 19FEN1
Document Created: 2018-02-16 11:12:14
Document Modified: 2018-02-16 11:12:14
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 8916