81 FR 13861 - Self-Regulatory Organizations; Bats BZX Exchange, Inc. f/k/a BATS Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use of BATS Exchange, Inc.
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 50 (March 15, 2016)
Federal Register Volume 81, Issue 50 (March 15, 2016)
| Page Range | 13861-13864 | |
| FR Document | 2016-05751 |
[Federal Register Volume 81, Number 50 (Tuesday, March 15, 2016)] [Notices] [Pages 13861-13864] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-05751] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77330; File No. SR-BATS-2016-26] Self-Regulatory Organizations; Bats BZX Exchange, Inc. f/k/a BATS Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use of BATS Exchange, Inc. March 9, 2016. 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 March 1, 2016, Bats BZX Exchange, Inc. f/k/a BATS Exchange, Inc. (the ``Exchange'' or ``BZX'') 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 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 BZX Rules 15.1(a) and (c). --------------------------------------------------------------------------- \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 modify its fee schedule applicable to the Exchange's options platform to: (i) Modify the standard fees for both [[Page 13862]] Customer \6\ and Non-Customer \7\ orders that remove liquidity in Non- Penny Pilot Securities; \8\ (ii) modify the standard fees for Customer orders that remove liquidity in Penny Pilot Securities; \9\ (iii) amend the criteria necessary to meet and the rebate associated with the Customer Add Volume Tier 4; (iv) amend the criteria necessary to meet the Customer Step-Up Volume Tier; (v) add a new footnote 12 entitled Customer Non-Penny Pilot Add Volume Tier; and (vi) add a new Non- Customer Take Volume Tier under footnote 3. --------------------------------------------------------------------------- \6\ As defined in the Exchange's fee schedule available at http://www.batsoptions.com/support/fee_schedule/bzx/. \7\ Id. \8\ Id. \9\ Id. --------------------------------------------------------------------------- Removing Liquidity in Non-Penny Pilot Securities The Exchange is proposing to modify the standard fees for both Customer and Non-Customer orders that remove liquidity in Non-Penny Pilot Securities under fee codes NC and NP, respectively. Specifically, the Exchange is proposing to increase the standard fee for Customer orders that remove liquidity in Non-Penny Pilot Securities under fee code NC from $0.84 to $0.85 per contract and the standard fee for Non- Customer orders that remove liquidity in Non-Penny Pilot Securities under fee code NP from $0.89 to $0.94 per contract. Customer Orders That Remove Liquidity in Penny Pilot Securities The Exchange is proposing to modify the standard fees for Customer orders that remove liquidity in Penny Pilot Securities under fee code PC. Specifically, the Exchange is proposing to increase the standard fee for Customer orders that remove liquidity in Penny Pilot Securities under fee code PC from $0.46 to $0.48 per contract. Customer Add Volume Tier 4 The Exchange is proposing to amend the criteria necessary to meet and the rebate associated with the Customer Add Volume Tier 4 under footnote 1, which currently provides Members with a rebate of $0.50 per contract for Customer orders that add liquidity in Penny Pilot Securities where the Member has an ADAV \10\ equal to or greater than 0.85% of average TCV.\11\ Specifically, the Exchange is proposing to amend Customer Add Volume Tier 4 such that a Member will receive a $0.52 rebate for Customer orders that add liquidity in Penny Pilot Securities where the Member has an ADAV in Customer orders equal to or greater than 1.00% of average TCV. --------------------------------------------------------------------------- \10\ Id. \11\ Id. --------------------------------------------------------------------------- Customer Step-Up Volume Tier The Exchange is proposing to amend the criteria necessary to meet the Customer Step-Up Volume Tier, which currently provides Members with a rebate of $0.53 per contract where the Member has an Options Step-Up Add TCV \12\ in Customer orders from September 2015 baseline equal to or greater than 0.35%. Specifically, the Exchange is proposing to continue offering a rebate of $0.53 per contract where the Member has an Options Step-Up Add TCV in Customer orders from September 2015 baseline equal to or greater than 0.40%. --------------------------------------------------------------------------- \12\ Id. --------------------------------------------------------------------------- Customer Non-Penny Pilot Add Volume Tier The Exchange is proposing to create a new footnote 12 entitled ``Customer Non-Penny Pilot Add Volume Tier,'' which would apply to orders that receive fee code NY. Under the proposed new tier, Customer orders that add liquidity in Non-Penny Pilot Securities would receive $1.00 per contract where the Member has an ADAV in Customer orders equal to or greater than 0.70% of average TCV. New Non-Customer Take Volume Tier The Exchange is proposing to add a new Non-Customer Take Volume Tier under footnote 3. Under the new Non-Customer Take Volume Tier 3, the Exchange would charge $0.47 per contract for a Non-Customer order to remove liquidity in Penny Pilot Securities where the Member has an ADAV in Customer orders equal to or greater than 1.00% of average TCV. In conjunction with this proposed change, the Exchange is proposing to change current Non-Customer Take Volume Tier 3 to Non-Customer Take Volume Tier 4. Implementation Date The Exchange proposes to implement these amendments to its fee schedule on March 1, 2016. 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.\13\ Specifically, the Exchange believes that the proposed rule change is consistent with Section 6(b)(4) of the Act,\14\ 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 to be excessive. --------------------------------------------------------------------------- \13\ 15 U.S.C. 78f. \14\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- Volume-based rebates such as those currently maintained on the Exchange have been widely adopted by equities and options exchanges and are equitable because they are open to all Members on an equal basis and provide additional benefits or discounts that are reasonably related to the value to an exchange's market quality associated with higher levels of market activity, such as higher levels of liquidity provision and/or growth patterns, and introduction of higher volumes of orders into the price and volume discovery processes. Removing Liquidity in Non-Penny Pilot Securities The Exchange believes that its proposal to change the standard fee charged for Customer orders that remove liquidity in Non-Penny Pilot Securities from $0.84 to $0.85 per contract and the standard fee for Non-Customer orders that remove liquidity in Non-Penny Pilot Securities under fee code NP from $0.89 to $0.94 per contract is reasonable, fair and equitable and non-discriminatory, for the reasons set forth above with respect to volume-based pricing generally, because the change will apply equally to all participants, and because, while the change marks an increase in fees for orders in Non-Penny Pilot Securities, such proposed fees remain consistent with pricing previously offered by the Exchange as well as competitors of the Exchange and does not represent a significant departure from the Exchange's general pricing structure and will allow the Exchange to earn additional revenue that can be used to offset the addition of new pricing incentives, including those introduced as part of this proposal. Customer Orders That Remove Liquidity in Penny Pilot Securities The Exchange believes that its proposal to increase the standard fees for Customer orders that remove liquidity in Penny Pilot Securities from $0.46 to $0.48 per contract is [[Page 13863]] reasonable, fair and equitable and non-discriminatory, for the reasons set forth above with respect to volume-based pricing generally, because such change will apply equally to all participants, and because, while the change marks an increase in fees for such orders, such proposed fees remain consistent with pricing previously offered by the Exchange as well as competitors of the Exchange and does not represent a significant departure from the Exchange's general pricing structure and will allow the Exchange to earn additional revenue that can be used to offset the addition of new pricing incentives, including those introduced as part of this proposal. Customer Add Volume Tier 4 The Exchange believes that its proposal to amend Customer Add Volume Tier 4 such that a Member will receive a $0.52 rebate for Customer orders that add liquidity in Penny Pilot Securities where the Member has an ADAV in Customer orders equal to or greater than 1.00% of average TCV is reasonable, fair and equitable and non-discriminatory, for the reasons set forth above with respect to volume-based pricing generally and because such change will apply equally to all participants and will incentivize such participants to further contribute to market quality on the Exchange. Moreover, the proposed change will provide Members with an increased incentive (increasing the rebate from $0.50 to $0.52 per contract) to add liquidity in Customer orders, which the Exchange not only believes will enhance market quality for all market participants, but will also encourage increased participation of Non-Customer orders wanting to interact with such Customer orders, further to the benefit of all market participants. The Exchange also believes that the proposed rebate remains consistent with pricing previously offered by the Exchange as well as competitors of the Exchange and does not represent a significant departure from the Exchange's general pricing structure. Customer Step-Up Volume Tier The Exchange believes that its proposal to increase the Options Step-Up Add TCV in Customer orders from September 2015 baseline to 0.40% in order to receive a rebate of $0.53 is reasonable, fair and equitable and non-discriminatory, for the reasons set forth above with respect to volume-based pricing generally and because such change will apply equal to all participants and incentivize such participants to further contribute to market quality on the Exchange. While the change will require Members to further increase their participation as compared to the September 2015 baseline in order to receive the same rebate, the Exchange believes that such proposed rebates remain consistent with pricing previously offered by the Exchange as well as competitors of the Exchange and does not represent a significant departure from the Exchange's general pricing structure and will act to incentivize such Members to increase participation on the Exchange, thereby enhancing liquidity and market quality on the Exchange for all participants. The Exchange also believes that the proposed rebate remains consistent with pricing previously offered by the Exchange as well as competitors of the Exchange and does not represent a significant departure from the Exchange's general pricing structure. Customer Non-Penny Pilot Add Volume Tier The Exchange believes that its proposal to create a new tier under which Customer orders that add liquidity in Non-Penny Pilot Securities would receive $1.00 per contract where the Member has an ADAV in Customer orders equal to or greater than 0.70% of average TCV is reasonable, fair and equitable and non-discriminatory, for the reasons set forth above with respect to volume-based pricing generally, because such change will apply equally to all participants, and because the change will incentivize such participants to further contribute to market quality on the Exchange. Moreover, the proposed change will provide Members with an increased incentive to add liquidity in Customer orders, which the Exchange not only believes will enhance market quality for all market participants, but will also encourage increased participation of Non-Customer orders wanting to interact with such Customer orders, further to the benefit of all market participants. The Exchange also believes that the proposed rebate remains consistent with pricing previously offered by the Exchange as well as competitors of the Exchange, in particular those of Nasdaq Options Market LLC, which currently offers a rebate of up to $1.00 for Customer orders in Non-Penny Pilot Securities, and does not represent a significant departure from the Exchange's general pricing structure. New Non-Customer Take Volume Tier The Exchange believes that its proposal to add a new tier under footnote 3 under which the Exchange would charge $0.47 per contract for a Non-Customer order to remove liquidity in Penny Pilot Securities where the Member has an ADAV in Customer orders equal to or greater than 1.00% of average TCV is reasonable, fair and equitable and non- discriminatory, for the reasons set forth above with respect to volume- based pricing generally, because such change will apply equally to all participants, and because the change will incentivize such participants to further contribute to market quality on the Exchange. Moreover, the proposed enhanced rebate will provide Members with an increased incentive to add liquidity in Customer orders, which the Exchange not only believes will enhance market quality for all market participants, but will also encourage increased participation of Non-Customer orders wanting to interact with such Customer orders, further to the benefit of all market participants. The Exchange also believes that the proposed fee remains consistent with pricing previously offered by the Exchange as well as competitors of the Exchange and does not represent a significant departure from the Exchange's general pricing structure. The Exchange also believes that the clarifying numbering change associated with this change is reasonable, fair and equitable and non- discriminatory because it is non-substantive and is designed to make sure that the fee schedule is as clear and easily understandable as possible. (B) Self-Regulatory Organization's Statement on Burden on Competition The Exchange believes the proposed amendments to its fee schedule would not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. To the contrary, the Exchange has designed the proposed amendments to its fee schedule in order to enhance its ability to compete with other exchanges. Rather, the proposal as a whole is a competitive proposal that is seeking further the growth of the Exchange. The Exchange has structured the proposed fees and rebates to attract certain additional volume in both Customer and certain Non-Customer orders, however, the Exchange believes that its pricing for all capacities is competitive with that offered by other options exchanges. Additionally, Members may opt to disfavor the Exchange's pricing if they believe that alternatives offer them better value. Accordingly, the Exchange does not believe that the proposed change will impair the ability of Members or competing venues to [[Page 13864]] maintain their competitive standing in the financial markets. Additionally, Members may opt to disfavor the Exchange's pricing if they believe that alternatives offer them better value. Accordingly, the Exchange does not believe that the proposed changes to the Exchange's tiered pricing structure burdens competition, but instead, enhances competition as it is intended to increase the competitiveness of the Exchange. Also, the Exchange believes that the price changes contribute to, rather than burden competition, as such changes are broadly intended to incentivize participants to increase their participation on the Exchange, which will increase the liquidity and market quality on the Exchange, which will then further enhance the Exchange's ability to compete with other exchanges. (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 \15\ and paragraph (f) of Rule 19b-4 thereunder.\16\ 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. --------------------------------------------------------------------------- \15\ 15 U.S.C. 78s(b)(3)(A). \16\ 17 CFR 240.19b-4(f). --------------------------------------------------------------------------- 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-BATS-2016-26 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-BATS-2016-26. 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 Number SR-BATS-2016-26 and should be submitted on or before April 5, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\17\ --------------------------------------------------------------------------- \17\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-05751 Filed 3-14-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 50 / Tuesday, March 15, 2016 / Notices 13861
burden on competition is necessary and subject line if email is used. To help the or ‘‘BZX’’) filed with the Securities and
appropriate in furtherance of the Commission process and review your Exchange Commission (‘‘Commission’’)
purposes of Section 6(b)(5) of the Act comments more efficiently, please use the proposed rule change as described
because it enhances and promotes the only one method. The Commission will in Items I, II and III below, which Items
frequency of SNAP Cycles, which is a post all comments on the Commission’s have been prepared by the Exchange.
functionality that seeks to deemphasize Internet Web site (http://www.sec.gov/ The Exchange has designated the
speed as a key to trading success in rules/sro.shtml). Copies of the proposed rule change as one
order to further serve the interests of submission, all subsequent establishing or changing a member due,
investors, as recently noted by Chair amendments, all written statements fee, or other charge imposed by the
White, and thereby removes with respect to the proposed rule Exchange under Section 19(b)(3)(A)(ii)
impediments and perfects the change that are filed with the of the Act 3 and Rule 19b–4(f)(2)
mechanisms of a free and open Commission, and all written thereunder,4 which renders the
market.32 communications relating to the
proposed rule change effective upon
proposed rule change between the
C. Self-Regulatory Organization’s filing with the Commission. The
Commission and any person, other than
Statement on Comments on the those that may be withheld from the Commission is publishing this notice to
Proposed Rule Change Received From public in accordance with the solicit comments on the proposed rule
Members, Participants, or Others provisions of 5 U.S.C. 552, will be change from interested persons.
No written comments were solicited available for Web site viewing and I. Self-Regulatory Organization’s
or received with respect to the proposed printing in the Commission’s Public Statement of the Terms of Substance of
rule change. Reference Room, 100 F Street NE., the Proposed Rule Change
Washington, DC 20549 on official
III. Date of Effectiveness of the
business days between the hours of The Exchange filed a proposal to
Proposed Rule Change and Timing for
10:00 a.m. and 3:00 p.m. Copies of the amend the fee schedule applicable to
Commission Action
filing also will be available for Members 5 and non-members of the
Within 45 days of the date of inspection and copying at the principal Exchange pursuant to BZX Rules 15.1(a)
publication of this notice in the Federal office of the Exchange and on its and (c).
Register or within such longer period Internet Web site at www.chx.com. All
up to 90 days (i) as the Commission may The text of the proposed rule change
comments received will be posted
designate if it finds such longer period is available at the Exchange’s Web site
without change; the Commission does
to be appropriate and publishes its not edit personal identifying at www.batstrading.com, at the
reasons for so finding or (ii) as to which information from submissions. You principal office of the Exchange, and at
the Exchange consents, the Commission should submit only information that the Commission’s Public Reference
will: you wish to make available publicly. All Room.
(A) By order approve or disapprove submissions should refer to File II. Self-Regulatory Organization’s
such proposed rule change, or Number SR–CHX–2016–01, and should Statement of the Purpose of, and
(B) institute proceedings to determine be submitted on or before April 5, 2016. Statutory Basis for, the Proposed Rule
whether the proposed rule change
should be disapproved.
For the Commission, by the Division of Change
Trading and Markets, pursuant to delegated
IV. Solicitation of Comments authority.33 In its filing with the Commission, the
Robert W. Errett, Exchange included statements
Interested persons are invited to
Deputy Secretary. concerning the purpose of and basis for
submit written data, views, and
[FR Doc. 2016–05752 Filed 3–14–16; 8:45 am] the proposed rule change and discussed
arguments concerning the foregoing,
any comments it received on the
including whether the proposed rule BILLING CODE 8011–01–P
change is consistent with the Act. proposed rule change. The text of these
Comments may be submitted by any of statements may be examined at the
the following methods: SECURITIES AND EXCHANGE places specified in Item IV below. The
COMMISSION Exchange has prepared summaries, set
Electronic Comments forth in Sections A, B, and C below, of
[Release No. 34–77330; File No. SR–BATS–
• Use the Commission’s Internet 2016–26] the most significant parts of such
comment form (http://www.sec.gov/ statements.
rules/sro.shtml); or Self-Regulatory Organizations; Bats
(A) Self-Regulatory Organization’s
• Send an email to rule-comments@ BZX Exchange, Inc. f/k/a BATS
sec.gov. Please include File Number SR– Exchange, Inc.; Notice of Filing and Statement of the Purpose of, and
CHX–2016–01 on the subject line. Immediate Effectiveness of a Proposed Statutory Basis for, the Proposed Rule
Rule Change Related to Fees for Use Change
Paper Comments
of BATS Exchange, Inc. 1. Purpose
• Send paper comments in triplicate
to Secretary, Securities and Exchange March 9, 2016. The Exchange proposes to modify its
Commission, 100 F Street NE., Pursuant to Section 19(b)(1) of the fee schedule applicable to the
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Washington, DC 20549–1090. Securities Exchange Act of 1934 (the Exchange’s options platform to: (i)
All submissions should refer to File ‘‘Act’’),1 and Rule 19b–4 thereunder,2 Modify the standard fees for both
Number SR–CHX–2016–01. This file notice is hereby given that on March 1,
number should be included on the 2016, Bats BZX Exchange, Inc. f/k/a 3 15 U.S.C. 78s(b)(3)(A)(ii).
BATS Exchange, Inc. (the ‘‘Exchange’’ 4 17 CFR 240.19b–4(f)(2).
32 See Mary Jo White, Chair, Securities and 5 The term ‘‘Member’’ is defined as ‘‘any
33 17 CFR 200.30–3(a)(12).
Exchange Commission, Speech at Sandler O’Neil & registered broker or dealer that has been admitted
1 15 U.S.C. 78s(b)(1).
Partners L.P. Global Exchange and Brokerage to membership in the Exchange.’’ See Exchange
Conference (June 5, 2014). 2 17 CFR 240.19b–4. Rule 1.5(n).
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![13864 Federal Register / Vol. 81, No. 50 / Tuesday, March 15, 2016 / Notices
maintain their competitive standing in Paper Comments SECURITIES AND EXCHANGE
the financial markets. Additionally, COMMISSION
Members may opt to disfavor the • Send paper comments in triplicate
to Secretary, Securities and Exchange [Release No. 34–77334; File No. SR–ISE
Exchange’s pricing if they believe that
Commission, 100 F Street NE., Gemini–2016–02]
alternatives offer them better value.
Accordingly, the Exchange does not Washington, DC 20549–1090. Self-Regulatory Organizations; ISE
believe that the proposed changes to the All submissions should refer to File Gemini, LLC; Notice of Filing and
Exchange’s tiered pricing structure Number SR–BATS–2016–26. This file Immediate Effectiveness of Proposed
burdens competition, but instead, number should be included on the Rule Change To Limit Mandatory
enhances competition as it is intended Participation in Scheduled Functional
subject line if email is used. To help the
to increase the competitiveness of the and Performance Testing Under
Commission process and review your
Exchange. Also, the Exchange believes Regulation SCI to Only Those Primary
that the price changes contribute to, comments more efficiently, please use
only one method. The Commission will Market Makers That Meet Specified
rather than burden competition, as such Criteria
changes are broadly intended to post all comments on the Commission’s
incentivize participants to increase their Internet Web site (http://www.sec.gov/ March 9, 2016.
participation on the Exchange, which rules/sro.shtml). Copies of the Pursuant to section 19(b)(1) of the
will increase the liquidity and market submission, all subsequent Securities Exchange Act of 1934 (the
quality on the Exchange, which will amendments, all written statements ‘‘Act’’),1 and Rule 19b–4 thereunder,2
then further enhance the Exchange’s with respect to the proposed rule notice is hereby given that on February
ability to compete with other exchanges. change that are filed with the 26, 2016, ISE Gemini, LLC (the
Commission, and all written ‘‘Exchange’’ or the ‘‘ISE Gemini’’) filed
(C) Self-Regulatory Organization’s
communications relating to the with the Securities and Exchange
Statement on Comments on the
proposed rule change between the Commission the proposed rule change
Proposed Rule Change Received From
Commission and any person, other than as described in Items I, II, and III below,
Members, Participants or Others
those that may be withheld from the which Items have been prepared by the
The Exchange has not solicited, and public in accordance with the self-regulatory organization. The
does not intend to solicit, comments on provisions of 5 U.S.C. 552, will be Commission is publishing this notice to
this proposed rule change. The available for Web site viewing and solicit comments on the proposed rule
Exchange has not received any written printing in the Commission’s Public change from interested persons.
comments from members or other Reference Room, 100 F Street NE., I. Self-Regulatory Organization’s
interested parties. Washington, DC 20549, on official Statement of the Terms of Substance of
III. Date of Effectiveness of the business days between the hours of the Proposed Rule Change
Proposed Rule Change and Timing for 10:00 a.m. and 3:00 p.m. Copies of such The Exchange proposes to amend
Commission Action filing will also be available for Rule 803, Obligations of Market Makers,
inspection and copying at the principal to limit mandatory participation in
The foregoing rule change has become
office of the Exchange. All comments scheduled functional and performance
effective pursuant to Section 19(b)(3)(A)
received will be posted without change; testing, under Regulation Systems
of the Act 15 and paragraph (f) of Rule
19b–4 thereunder.16 At any time within the Commission does not edit personal Compliance and Integrity (‘‘Regulation
60 days of the filing of the proposed rule identifying information from SCI’’),3 to those Primary Market Makers
change, the Commission summarily may submissions. You should submit only (‘‘PMMs’’) that contribute a meaningful
temporarily suspend such rule change if information that you wish to make percentage of the Exchange’s overall
it appears to the Commission that such available publicly. All submissions volume, measured on a quarterly or
action is necessary or appropriate in the should refer to File Number SR–BATS– monthly basis. The Exchange proposes
public interest, for the protection of 2016–26 and should be submitted on or to also consider other factors in
investors, or otherwise in furtherance of before April 5, 2016. determining the PMMs that will be
the purposes of the Act. For the Commission, by the Division of
required to participate in scheduled
Trading and Markets, pursuant to delegated functional and performance testing of
IV. Solicitation of Comments the Exchange’s business continuity and
authority.17
Interested persons are invited to disaster recovery plans (collectively
Robert W. Errett,
submit written data, views, and ‘‘DR Plans’’), including average daily
Deputy Secretary. volume traded on the Exchange
arguments concerning the foregoing,
[FR Doc. 2016–05751 Filed 3–14–16; 8:45 am] measured on a quarterly or monthly
including whether the proposed rule
change is consistent with the Act. BILLING CODE 8011–01–P basis, or PMMs that collectively account
Comments may be submitted by any of for a certain percentage of market share
the following methods: on the Exchange or within a specific
product. In addition, the Exchange
Electronic Comments proposes to publish the criteria to be
• Use the Commission’s Internet used by the Exchange to determine
asabaliauskas on DSK3SPTVN1PROD with NOTICES
comment form (http://www.sec.gov/ which PMMs will be required to
rules/sro.shtml); or participate in such testing, and notify
• Send an email to rule-comments@ those PMMs that are required to
sec.gov. Please include File Number SR– 1 15 U.S.C. 78s(b)(1).
BATS–2016–26 on the subject line. 2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 73639
15 15 U.S.C. 78s(b)(3)(A). (November 19, 2014), 79 FR 72252 (December 5,
16 17 CFR 240.19b–4(f). 17 17 CFR 200.30–3(a)(12). 2014) (‘‘SCI Adopting Release’’).
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Document Created: 2016-03-15 04:07:26
Document Modified: 2016-03-15 04:07:26
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| FR Citation | 81 FR 13861 |
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