80 FR 9805 - Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 8.15 Entitled “Imposition of Fines for Minor Violation(s) of Rules”

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 36 (February 24, 2015)

Page Range		9805-9807
FR Document		2015-03664
Federal Register, Volume 80 Issue 36 (Tuesday, February 24, 2015)
[Federal Register Volume 80, Number 36 (Tuesday, February 24, 2015)]
[Notices]
[Pages 9805-9807]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-03664]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74293; File No. SR-BATS-2015-12]


Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend 
Rule 8.15 Entitled ``Imposition of Fines for Minor Violation(s) of 
Rules''

February 18, 2015.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on February 5, 2015, BATS Exchange, Inc. (the ``Exchange'' or 
``BATS'') 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.
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    \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).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange filed a proposal to amend Rule 8.15 entitled 
``Imposition of Fines for Minor Violation(s) of Rules.'' 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.

[[Page 9806]]

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 Rule 8.15 in order to make it 
substantively identical to the corresponding rules on EDGX Exchange, 
Inc. (``EDGX'') and EDGA Exchange, Inc. (``EDGA''), as further 
described below. Earlier this year, the Exchange and its affiliate, 
BATS Y-Exchange, Inc. (``BYX''), received approval to effect a merger 
(the ``Merger'') of the Exchange's parent company, BATS Global Markets, 
Inc., with Direct Edge Holdings LLC, the indirect parent of EDGX, and 
EDGA (together with BZX, BYX and EDGX, the ``BGM Affiliated 
Exchanges'').\5\ In the context of the Merger, the BGM Affiliated 
Exchanges are working to align certain system and regulatory 
functionality, retaining only intended differences between the BGM 
Affiliated Exchanges. Thus, the proposal set forth below is intended to 
amend Rule 8.15 in order to make the rule substantively identical to 
corresponding rules on EDGA and EDGX related to minor violations of 
exchange rules in order to provide a consistent regulatory approach 
across each of the BGM Affiliated Exchanges.
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    \5\ See Securities Exchange Act Release No. 71375 (January 23, 
2014), 79 FR 4771 (January 29, 2014) (SR-BATS-2013-059; SR-BYX-2013-
039).
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    Currently, Rule 8.15(a) provides that, in lieu of commencing a 
disciplinary proceeding as described in Rules 8.1 through 8.13, the 
Exchange may, subject to the requirements set forth in this Rule, 
impose a fine, not to exceed $2,500, on any Member, associated person 
of a Member, or registered or non-registered employee of a Member, for 
any violation of a Rule of the Exchange, which violation the Exchange 
shall have determined is minor in nature. The Exchange is proposing to 
add language in order to make Rule 8.15(a) and Interpretation and 
Policy .01 to Rule 8.15 identical to the corresponding EDGA and EDGX 
rules.\6\ Specifically, the Exchange is proposing that the Exchange 
may, if no exceptional circumstances are present, impose a fine based 
upon a determination that there exists a pattern or practice of 
violative conduct. As proposed, the Exchange also may aggregate similar 
violations generally if the conduct was unintentional, there was no 
injury to public investors, or the violations resulted from a single 
systemic problem or cause that has been corrected.
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    \6\ See EDGX Rule 8.15(a) and Interpretation and Policy .01 to 
Rule 8.15 and EDGA Rule 8.15(a) and Interpretation and Policy .01 to 
Rule 8.15.
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    Currently, under Interpretation and Policy .01 to Rule 8.15, the 
Exchange fines individuals $100, $300, and $500 and Member firms $500, 
$1,000, and $2,500 for their first, second, and third time fined under 
Rule 8.15 within a rolling 12-month period, respectively, for the 
following violations of Exchange rules: (a) Rule 4.2 and Interpretation 
and Policy thereunder requiring the submission of responses to Exchange 
requests for trading data within a specified time period; (b) Rule 
11.19 requirement to identify short sale orders as such; and (c) Rule 
11.20 requirement to comply with locked and crossed market rules. The 
Exchange is proposing to add two additional instances to the fine 
structure described above. These additional instances include: (1) Rule 
3.5 Advertising Practices; and (2) Rule 12.11 Interpretation and Policy 
.01 and Exchange Act Rule 604--Failure to properly display limit 
orders.\7\
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    \7\ The Exchange notes that these proposed changes would make 
the Exchange's Rule 8.15, with the exception of current Rule 8.15(a) 
[sic] and paragraph (d) [sic] of Interpretation and Policy .01 to 
Rule 8.15 related to the rules of the Exchange's options platform 
(``BATS Options''), substantively identical to the corresponding 
EDGA and EDGX rules based on filings SR-EDGA-2015-11 and SR-EDGX-
2015-10. Such filings propose to remove paragraph (d) of 
Interpretation and Policy .01 to both EDGA and EDGX rules 8.15. The 
Exchange also notes that BYX intends to file a proposal very similar 
to this proposal that will align the rules related to fines for 
minor violation of exchange rules across each of the BGM Affiliated 
Exchanges.
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    The Exchange is also proposing to make several non-substantive 
changes to Interpretation and Policy .01 to Rule 8.15. First, the 
Exchange is proposing to change the numbering within the rule to 
reflect the additions described above. Second, the Exchange is 
proposing to change the phrase ``limit orders'' in paragraph (e) of 
Interpretation and Policy .01 to Rule 8.15 to ``quotations.'' The 
Exchange believes that this change is non-substantive because, in this 
instance, the terms limit orders and quotations are interchangeable. 
Paragraph (e) is referring to the obligation of a Market Maker under 
Rule 11.8 to maintain continuous liquidity of both buy and sell orders, 
which are referred to as quotes or quotations in Rule 11.8, at certain 
prices. Based on Exchange functionality, the only way to enter priced 
orders that could meet such quotation obligations would be through use 
of limit orders. As such, the Exchange believes that the proposed 
change is non-substantive, makes the rule more clear, and more 
accurately reflects the language used in Exchange Rule 11.8. Further, 
the change would make the rule text identical to that of EDGA and EDGX.
2. Statutory Basis
    The Exchange believes that the rule change proposed in this 
submission 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.\8\ Specifically, the proposed change is consistent with 
Section 6(b)(5) of the Act,\9\ 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, and, in general, to protect investors and the public interest. 
As mentioned above, the proposed rule changes, combined with the 
planned filing for BYX,\10\ would allow the BGM Affiliated Exchanges to 
provide a consistent set of rules as it relates to the imposition of 
fines for minor violations of rules across each of the exchanges. 
Consistent rules, in turn, will simplify the regulatory requirements 
for Members of the Exchange that are also participants on BYX, EDGA, 
and/or EDGX. 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. 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.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
    \10\ See supra note 7.
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    Specifically, the changes to Rule 8.15(a) and the addition of new 
paragraphs (d) and (e) to Interpretation and Policy .01 of Rule 8.15 
will provide the Exchange with additional ways to handle related minor 
violations as well as providing the Exchange with the ability to handle 
other rule violations which it believes to be minor under Rule 8.15. 
The Exchange believes that, in addition to the benefits to Members 
described above, the proposal will enhance the Exchange's ability to 
efficiently regulate its Members, meaning that the proposed rule change 
is equitable and will promote fairness in the market place.
    Further, the Exchange believes that the proposal is consistent with 
Sections

[[Page 9807]]

6(b)(1) and 6(b)(6) of the Act \11\ which require that the rules of an 
exchange enforce compliance with, and provide appropriate discipline 
for, violations of the Commission and Exchange rules. The Exchange also 
believes that the proposal is consistent with the public interest, the 
protection of investors, or otherwise in furtherance of the purposes of 
the Act because the proposal helps to strengthen the Exchange's ability 
to carry out its oversight and enforcement responsibilities as a self-
regulatory organization in cases where full disciplinary proceedings 
are unsuitable in view of the minor nature of a particular violation.
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    \11\ 15 U.S.C. 78f(b)(1) and 78f(b)(6).
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    Finally, the Exchange believes that the non-substantive changes 
discussed above will contribute to the protection of investors and the 
public interest by helping to avoid confusion with respect to Exchange 
rules.

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 not necessary or appropriate in 
furtherance of the purposes of the act. To the contrary, allowing the 
Exchange to implement substantively identical rules related to the 
imposition of fines for minor violations of rules across each of the 
BGM Affiliated Exchanges does not present any competitive issues, but 
rather is designed to provide greater harmonization among Exchange, 
BYX, EDGA, and EDGX rules of similar purpose, resulting in less 
burdensome and more efficient regulatory compliance for common members 
of the BGM Affiliated Exchanges and an enhanced ability of the BGM 
Affiliated Exchanges to fairly and efficiently regulate members, which 
will further enhance competition.

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 foregoing 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 \12\ and paragraph 
of Rule 19b-4(f)(6) thereunder.\13\
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    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4.
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    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.

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 be submitted by any of the 
following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File No. SR-BATS-2015-12 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File No. SR-BATS-2015-12. 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-BATS-2015-12 and should be 
submitted on or before March 17, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-03664 Filed 2-23-15; 8:45 am]
BILLING CODE 8011-01-P
Federal Register / Vol. 80, No. 36 / Tuesday, February 24, 2015 / Notices 9805

burden on competition; and (iii) become • Send an email to rule-comments@ SECURITIES AND EXCHANGE
operative for 30 days from the date on sec.gov. Please include File Number SR– COMMISSION
which it was filed, or such shorter time C2–2015–003 on the subject line.
as the Commission may designate if [Release No. 34–74293; File No. SR–BATS–
consistent with the protection of Paper Comments
2015–12]
investors and the public interest, the • Send paper comments in triplicate
proposed rule change has become to Secretary, Securities and Exchange Self-Regulatory Organizations; BATS
effective pursuant to Section 19(b)(3)(A) Exchange, Inc.; Notice of Filing and
Commission, 100 F Street NE.,
of the Act 6 and Rule 19b–4(f)(6)(iii) Immediate Effectiveness of a Proposed
Washington, DC 20549–1090.
thereunder.7 Rule Change To Amend Rule 8.15
The Exchange has asked the All submissions should refer to File Entitled ‘‘Imposition of Fines for Minor
Commission to waive the 30-day Number SR–C2–2015–003. This file Violation(s) of Rules’’
operative delay so that the proposal may number should be included on the
become operative immediately upon February 18, 2015.
subject line if email is used. To help the
filing. The Commission believes that Commission process and review your Pursuant to Section 19(b)(1) of the
waiving the 30-day operative delay is comments more efficiently, please use Securities Exchange Act of 1934 (the
consistent with the protection of only one method. The Commission will ‘‘Act’’),1 and Rule 19b–4 thereunder,2
investors and the public interest, as it post all comments on the Commission’s notice is hereby given that on February
will allow the obvious error pilot Internet Web site (http://www.sec.gov/ 5, 2015, BATS Exchange, Inc. (the
program to continue uninterrupted rules/sro.shtml). Copies of the ‘‘Exchange’’ or ‘‘BATS’’) filed with the
while the industry gains further Securities and Exchange Commission
submission, all subsequent
experience operating under the Plan to (‘‘Commission’’) the proposed rule
amendments, all written statements
Address Extraordinary Market change as described in Items I and II
with respect to the proposed rule
Volatility, and avoid any investor below, which Items have been prepared
confusion that could result from a change that are filed with the
by the Exchange. The Exchange has
temporary interruption in the pilot Commission, and all written designated this proposal as a ‘‘non-
program. For this reason, the communications relating to the controversial’’ proposed rule change
Commission designates the proposed proposed rule change between the pursuant to Section 19(b)(3)(A) of the
rule change to be operative upon filing.8 Commission and any person, other than Act 3 and Rule 19b–4(f)(6)(iii)
At any time within 60 days of the those that may be withheld from the thereunder,4 which renders it effective
filing of the proposed rule change, the public in accordance with the upon filing with the Commission. The
Commission summarily may provisions of 5 U.S.C. 552, will be Commission is publishing this notice to
temporarily suspend such rule change if available for Web site viewing and solicit comments on the proposed rule
it appears to the Commission that such printing in the Commission’s Public change from interested persons.
action is necessary or appropriate in the Reference Room, 100 F Street NE.,
public interest, for the protection of I. Self-Regulatory Organization’s
Washington, DC 20549 on official
investors, or otherwise in furtherance of Statement of the Terms of Substance of
business days between the hours of
the purposes of the Act. If the the Proposed Rule Change
10:00 a.m. and 3:00 p.m. Copies of such
Commission takes such action, the filing also will be available for The Exchange filed a proposal to
Commission shall institute proceedings inspection and copying at the principal amend Rule 8.15 entitled ‘‘Imposition of
to determine whether the proposed rule office of the Exchange. All comments Fines for Minor Violation(s) of Rules.’’
should be approved or disapproved. received will be posted without change; The text of the proposed rule change is
IV. Solicitation of Comments the Commission does not edit personal available at the Exchange’s Web site at
identifying information from www.batstrading.com, at the principal
Interested persons are invited to office of the Exchange, and at the
submit written data, views, and submissions. You should submit only
information that you wish to make Commission’s Public Reference Room.
arguments concerning the foregoing,
including whether the proposed rule available publicly. All submissions II. Self-Regulatory Organization’s
change is consistent with the Act. should refer to File Number SR–C2– Statement of the Purpose of, and
Comments may be submitted by any of 2015–003, and should be submitted on Statutory Basis for, the Proposed Rule
the following methods: or before March 17, 2015. Change
Electronic Comments For the Commission, by the Division of
In its filing with the Commission, the
Trading and Markets, pursuant to delegated
• Use the Commission’s Internet Exchange included statements
authority.9
comment form (http://www.sec.gov/ concerning the purpose of and basis for
Brent J. Fields, the proposed rule change and discussed
rules/sro.shtml); or
Secretary. any comments it received on the
6 15 U.S.C. 78s(b)(3)(A). [FR Doc. 2015–03821 Filed 2–23–15; 8:45 am] proposed rule change. The text of these
7 17 CFR 240.19b–4(f)(6)(iii). As required under BILLING CODE 8011–01–P statements may be examined at the
Rule 19b–4(f)(6)(iii), the Exchange provided the places specified in Item IV below. The
Commission with written notice of its intent to file Exchange has prepared summaries, set
the proposed rule change, along with a brief
description and the text of the proposed rule forth in Sections A, B, and C below, of
tkelley on DSK3SPTVN1PROD with NOTICES

change, at least five business days prior to the date the most significant parts of such
of filing of the proposed rule change, or such statements.
shorter time as designated by the Commission.
8 For purposes only of waiving the 30-day
1 15 U.S.C. 78s(b)(1).
operative delay, the Commission has also
2 17 CFR 240.19b–4.
considered the proposed rule’s impact on
3 15 U.S.C. 78s(b)(3)(A).
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f). 9 17 CFR 200.30–3(a)(12). 4 17 CFR 240.19b–4(f)(6)(iii).

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9806 Federal Register / Vol. 80, No. 36 / Tuesday, February 24, 2015 / Notices

A. Self-Regulatory Organization’s resulted from a single systemic problem make the rule text identical to that of
Statement of the Purpose of, and or cause that has been corrected. EDGA and EDGX.
Statutory Basis for, the Proposed Rule Currently, under Interpretation and
2. Statutory Basis
Change Policy .01 to Rule 8.15, the Exchange
fines individuals $100, $300, and $500 The Exchange believes that the rule
1. Purpose change proposed in this submission is
and Member firms $500, $1,000, and
The Exchange proposes to amend $2,500 for their first, second, and third consistent with the requirements of the
Rule 8.15 in order to make it time fined under Rule 8.15 within a Act and the rules and regulations
substantively identical to the rolling 12-month period, respectively, thereunder that are applicable to a
corresponding rules on EDGX Exchange, for the following violations of Exchange national securities exchange, and, in
Inc. (‘‘EDGX’’) and EDGA Exchange, Inc. rules: (a) Rule 4.2 and Interpretation and particular, with the requirements of
(‘‘EDGA’’), as further described below. Policy thereunder requiring the Section 6(b) of the Act.8 Specifically,
Earlier this year, the Exchange and its submission of responses to Exchange the proposed change is consistent with
affiliate, BATS Y-Exchange, Inc. requests for trading data within a Section 6(b)(5) of the Act,9 because it is
(‘‘BYX’’), received approval to effect a specified time period; (b) Rule 11.19 designed to promote just and equitable
merger (the ‘‘Merger’’) of the Exchange’s requirement to identify short sale orders principles of trade, to remove
parent company, BATS Global Markets, as such; and (c) Rule 11.20 requirement impediments to, and perfect the
Inc., with Direct Edge Holdings LLC, the to comply with locked and crossed mechanism of, a free and open market
indirect parent of EDGX, and EDGA market rules. The Exchange is proposing and a national market system, and, in
(together with BZX, BYX and EDGX, the to add two additional instances to the general, to protect investors and the
‘‘BGM Affiliated Exchanges’’).5 In the fine structure described above. These public interest. As mentioned above, the
context of the Merger, the BGM additional instances include: (1) Rule proposed rule changes, combined with
Affiliated Exchanges are working to 3.5 Advertising Practices; and (2) Rule the planned filing for BYX,10 would
align certain system and regulatory 12.11 Interpretation and Policy .01 and allow the BGM Affiliated Exchanges to
functionality, retaining only intended Exchange Act Rule 604—Failure to provide a consistent set of rules as it
differences between the BGM Affiliated properly display limit orders.7 relates to the imposition of fines for
Exchanges. Thus, the proposal set forth The Exchange is also proposing to minor violations of rules across each of
below is intended to amend Rule 8.15 make several non-substantive changes to the exchanges. Consistent rules, in turn,
in order to make the rule substantively Interpretation and Policy .01 to Rule will simplify the regulatory
identical to corresponding rules on 8.15. First, the Exchange is proposing to requirements for Members of the
EDGA and EDGX related to minor change the numbering within the rule to Exchange that are also participants on
violations of exchange rules in order to reflect the additions described above. BYX, EDGA, and/or EDGX. The
provide a consistent regulatory Second, the Exchange is proposing to proposed rule change would provide
approach across each of the BGM change the phrase ‘‘limit orders’’ in greater harmonization between rules of
Affiliated Exchanges. paragraph (e) of Interpretation and similar purpose on the BGM Affiliated
Currently, Rule 8.15(a) provides that, Policy .01 to Rule 8.15 to ‘‘quotations.’’ Exchanges, resulting in greater
in lieu of commencing a disciplinary The Exchange believes that this change uniformity and less burdensome and
proceeding as described in Rules 8.1 is non-substantive because, in this more efficient regulatory compliance.
through 8.13, the Exchange may, subject instance, the terms limit orders and As such, the proposed rule change
to the requirements set forth in this quotations are interchangeable. would foster cooperation and
Rule, impose a fine, not to exceed Paragraph (e) is referring to the coordination with persons engaged in
$2,500, on any Member, associated obligation of a Market Maker under Rule facilitating transactions in securities and
person of a Member, or registered or 11.8 to maintain continuous liquidity of would remove impediments to and
non-registered employee of a Member, both buy and sell orders, which are perfect the mechanism of a free and
for any violation of a Rule of the referred to as quotes or quotations in open market and a national market
Exchange, which violation the Exchange Rule 11.8, at certain prices. Based on system.
Specifically, the changes to Rule
shall have determined is minor in Exchange functionality, the only way to
8.15(a) and the addition of new
nature. The Exchange is proposing to enter priced orders that could meet such
paragraphs (d) and (e) to Interpretation
add language in order to make Rule quotation obligations would be through
and Policy .01 of Rule 8.15 will provide
8.15(a) and Interpretation and Policy .01 use of limit orders. As such, the
the Exchange with additional ways to
to Rule 8.15 identical to the Exchange believes that the proposed
handle related minor violations as well
corresponding EDGA and EDGX rules.6 change is non-substantive, makes the
as providing the Exchange with the
Specifically, the Exchange is proposing rule more clear, and more accurately
ability to handle other rule violations
that the Exchange may, if no exceptional reflects the language used in Exchange
which it believes to be minor under
circumstances are present, impose a fine Rule 11.8. Further, the change would
Rule 8.15. The Exchange believes that,
based upon a determination that there
in addition to the benefits to Members
exists a pattern or practice of violative 7 The Exchange notes that these proposed changes

would make the Exchange’s Rule 8.15, with the described above, the proposal will
conduct. As proposed, the Exchange
exception of current Rule 8.15(a) [sic] and enhance the Exchange’s ability to
also may aggregate similar violations paragraph (d) [sic] of Interpretation and Policy .01 efficiently regulate its Members,
generally if the conduct was to Rule 8.15 related to the rules of the Exchange’s meaning that the proposed rule change
unintentional, there was no injury to options platform (‘‘BATS Options’’), substantively
identical to the corresponding EDGA and EDGX is equitable and will promote fairness in
public investors, or the violations
tkelley on DSK3SPTVN1PROD with NOTICES

rules based on filings SR–EDGA–2015–11 and SR– the market place.
EDGX–2015–10. Such filings propose to remove Further, the Exchange believes that
5 See Securities Exchange Act Release No. 71375
paragraph (d) of Interpretation and Policy .01 to the proposal is consistent with Sections
(January 23, 2014), 79 FR 4771 (January 29, 2014) both EDGA and EDGX rules 8.15. The Exchange
(SR–BATS–2013–059; SR–BYX–2013–039). also notes that BYX intends to file a proposal very
6 See EDGX Rule 8.15(a) and Interpretation and 8 15 U.S.C. 78f(b).
similar to this proposal that will align the rules
9 15 U.S.C. 78f(b)(5).
Policy .01 to Rule 8.15 and EDGA Rule 8.15(a) and related to fines for minor violation of exchange
Interpretation and Policy .01 to Rule 8.15. rules across each of the BGM Affiliated Exchanges. 10 See supra note 7.

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Document Created: 2015-12-18 13:22:39
Document Modified: 2015-12-18 13:22:39
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 9805