81 FR 1457 - Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change, as Modified by Amendment No. 1 Thereto, To Adopt Rule 8.17 To Provide a Process for an Expedited Client Suspension Proceeding and Rule 12.15 To Prohibit Disruptive Quoting and Trading Activity

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 7 (January 12, 2016)

Page Range		1457-1458
FR Document		2016-00336

Federal Register, Volume 81 Issue 7 (Tuesday, January 12, 2016)

[Federal Register Volume 81, Number 7 (Tuesday, January 12, 2016)]
[Notices]
[Pages 1457-1458]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-00336]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76841; File No. SR-BATS-2015-101]


Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of 
Designation of a Longer Period for Commission Action on a Proposed Rule 
Change, as Modified by Amendment No. 1 Thereto, To Adopt Rule 8.17 To 
Provide a Process for an Expedited Client Suspension Proceeding and 
Rule 12.15 To Prohibit Disruptive Quoting and Trading Activity

January 6, 2016.
    On November 6, 2015, BATS Exchange, Inc. (``Exchange'') filed with 
the Securities and Exchange Commission (``Commission''), pursuant to 
section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ 
and Rule 19b-4 thereunder,\2\ a proposed rule change to adopt new BATS 
Rule (``Rule'') 12.15, which would prohibit certain disruptive quoting 
and trading activity on the Exchange, and new Rule 8.17, which would 
permit BATS to conduct a new Expedited Client Suspension Proceeding 
when it believes

[[Page 1458]]

proposed Rule 12.15 has been violated.\3\ On November 17, 2015, the 
Exchange filed Amendment No. 1 to the proposal.\4\ The proposed rule 
change, as modified by Amendment No. 1, was published for comment in 
the Federal Register on November 24, 2015.\5\ The Commission received 
four comments on the proposal.\6\
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    \1\ 15 U.S.C.78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ This proposed rule change is a revised version of a prior 
filing, BATS-2015-57, which the Exchange withdrew and revised in 
order to address certain issues raised by comments submitted with 
respect to BATS-2015-57. See Securities Exchange Act Release No. 
76393 (November 9, 2015), 80 FR 70851 (November 16, 2015) (BATS-
2015-57) (noticing the withdrawal of BATS-2015-57).
    \4\ Amendment No. 1 amended and replaced the original proposal 
in its entirety.
    \5\ See Securities Exchange Act Release No. 76470 (November 18, 
2015), 80 FR 73247 (``Notice'').
    \6\ See letters from: R.T. Leuchtkafer to Brent J. Fields, 
Secretary, Commission, dated December, 14, 2015; Rick A. Fleming, 
Investor Advocate, Commission, to U.S. Securities and Exchange 
Commission, dated December 15, 2015; Samuel F. Lek, Chief Executive 
Officer, Lek Securities Corporation, dated December 28, 2015; G.T. 
Spaulding to Brent J. Fields, Secretary, Commission, dated December, 
28, 2015.
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    Section 19(b)(2) of the Act \7\ provides that, within 45 days of 
the publication of the notice of the filing of a proposed rule change, 
or within such longer period up to 90 days as the Commission may 
designate if it finds such longer period to be appropriate and 
publishes its reasons for so finding, or as to which the self-
regulatory organization consents, the Commission shall either approve 
the proposed rule change, disapprove the proposed rule change, or 
institute proceedings to determine whether the proposed rule change 
should be disapproved. The 45th day for this filing is January 8, 2016. 
The Commission is extending this 45-day time period.
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    \7\ 15 U.S.C. 78s(b)(2).
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    The Commission finds that it is appropriate to designate a longer 
period within which to take action on the proposed rule change so that 
it has sufficient time to consider the proposed rule change and the 
comments received. Accordingly, the Commission, pursuant to section 
19(b)(2) of the Act,\8\ designates February 22, 2016 as the date by 
which the Commission should either approve or disapprove or institute 
proceedings to determine whether to disapprove the proposed rule change 
(File Number SR-BATS-2015-101).
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    \8\ Id.
    \9\ 17 CFR 200.30-3(a)(31).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-00336 Filed 1-11-16; 8:45 am]
BILLING CODE 8011-01-P

Federal Register / Vol. 81, No. 7 / Tuesday, January 12, 2016 / Notices 1457

transactions effected after the quarterly C. Self-Regulatory Organization’s communications relating to the
expiration through the end of that Statement on Comments on the proposed rule change between the
month because the universe of Proposed Rule Change Received From Commission and any person, other than
transactions are not fully known until Members, Participants, or Others those that may be withheld from the
after the quarterly expiration. The Exchange neither solicited nor public in accordance with the
Additionally, in order for TPHs to received comments on the proposed provisions of 5 U.S.C. 552, will be
realize the benefit of the transactions rule change. available for Web site viewing and
under the bank capital regulatory printing in the Commission’s Public
III. Date of Effectiveness of the Reference Room, 100 F Street NE.,
requirements, all transactions must be Proposed Rule Change and Timing for
settled by the end of the financial Washington, DC 20549, on official
Commission Action business days between the hours of
reporting quarter.
The foregoing rule change has become 10:00 a.m. and 3:00 p.m. Copies of the
The Exchange believes requiring effective pursuant to section 19(b)(3)(A) filing also will be available for
TPHs to submit a request for a rebate of the Act 11 and paragraph (f) of Rule inspection and copying at the principal
within three business days of the 19b–4 12 thereunder. At any time within office of the Exchange. All comments
transactions clarifies the manner in 60 days of the filing of the proposed rule received will be posted without change;
which the rebate can be accomplished change, the Commission summarily may the Commission does not edit personal
in a timely manner and will eliminate temporarily suspend such rule change if identifying information from
any confusion and provide a clear it appears to the Commission that such submissions. You should submit only
procedure for applicants to get a rebate action is necessary or appropriate in the information that you wish to make
for their compression transactions, public interest, for the protection of available publicly. All submissions
removing impediments to and investors, or otherwise in furtherance of should refer to File Number SR–CBOE–
perfecting the mechanism of a free and the purposes of the Act. If the 2015–117 and should be submitted on
open market. Additionally, the Commission takes such action, the or before February 2, 2016.
Exchange notes that such requirement Commission will institute proceedings For the Commission, by the Division of
will apply to all market participants. to determine whether the proposed rule Trading and Markets, pursuant to delegated
change should be approved or authority.13
B. Self-Regulatory Organization’s disapproved. Robert W. Errett,
Statement on Burden on Competition Deputy Secretary.
IV. Solicitation of Comments
The Exchange does not believe that Interested persons are invited to [FR Doc. 2016–00337 Filed 1–11–16; 8:45 am]
the proposed rule changes will impose submit written data, views and BILLING CODE 8011–01–P
any burden on competition that are not arguments concerning the foregoing,
necessary or appropriate in furtherance including whether the proposed rule
of the purposes of the Act. The change is consistent with the Act. SECURITIES AND EXCHANGE
Comments may be submitted by any of COMMISSION
Exchange does not believe that the
proposed rule change will impose any the following methods: [Release No. 34–76841; File No. SR–BATS–
burden on intramarket competition that Electronic Comments 2015–101]
is not necessary or appropriate in
furtherance of the Act because it applies • Use the Commission’s Internet Self-Regulatory Organizations; BATS
comment form (http://www.sec.gov/ Exchange, Inc.; Notice of Designation
to all market participants in the same
rules/sro.shtml); or of a Longer Period for Commission
manner with positions that meet the • Send an email to rule-comments@
eligible criteria. The proposed change Action on a Proposed Rule Change, as
sec.gov. Please include File Number SR– Modified by Amendment No. 1 Thereto,
would encourage the closing of CBOE–2015–117 on the subject line. To Adopt Rule 8.17 To Provide a
positions that needlessly result in
Paper Comments Process for an Expedited Client
burdensome capital requirements that, Suspension Proceeding and Rule 12.15
once closed, would alleviate the capital • Send paper comments in triplicate To Prohibit Disruptive Quoting and
requirement constraints on TPHs and to Secretary, Securities and Exchange Trading Activity
improve overall market liquidity by Commission, 100 F Street NE.,
freeing capital currently tied up in Washington, DC 20549–1090. January 6, 2016.
certain out-of-the-money and riskless All submissions should refer to File On November 6, 2015, BATS
positions. The Exchange does not Number SR–CBOE–2015–117. This file Exchange, Inc. (‘‘Exchange’’) filed with
believe that the proposed rule changes number should be included on the the Securities and Exchange
will impose any burden on intermarket subject line if email is used. To help the Commission (‘‘Commission’’), pursuant
competition that is not necessary or Commission process and review your to section 19(b)(1) of the Securities
appropriate in furtherance of the comments more efficiently, please use Exchange Act of 1934 (‘‘Act’’) 1 and Rule
purposes of the Act because the only one method. The Commission will 19b–4 thereunder,2 a proposed rule
proposed rule change applies only to post all comments on the Commission’s change to adopt new BATS Rule
CBOE. To the extent that the proposed Internet Web site (http://www.sec.gov/ (‘‘Rule’’) 12.15, which would prohibit
changes make CBOE a more attractive rules/sro.shtml). Copies of the certain disruptive quoting and trading
submission, all subsequent activity on the Exchange, and new Rule
marketplace for market participants at
tkelley on DSK3SPTVN1PROD with NOTICES

amendments, all written statements 8.17, which would permit BATS to
other exchanges, such market
with respect to the proposed rule conduct a new Expedited Client
participants are welcome to become
change that are filed with the Suspension Proceeding when it believes
CBOE market participants. Commission, and all written
13 17 CFR 200.30–3(a)(12).
11 15 U.S.C. 78s(b)(3)(A). 1 15 U.S.C.78s(b)(1).
12 17 CFR 240.19b–4(f). 2 17 CFR 240.19b–4.

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1458 Federal Register / Vol. 81, No. 7 / Tuesday, January 12, 2016 / Notices

proposed Rule 12.15 has been violated.3 For the Commission, by the Division of December 18, 2015, the President signed
On November 17, 2015, the Exchange Trading and Markets, pursuant to delegated the ‘‘Consolidated Appropriations Act,
filed Amendment No. 1 to the authority.9 2016’’, providing $1,605,000,000 in
proposal.4 The proposed rule change, as Robert W. Errett, funds to the SEC for fiscal year 2016.
modified by Amendment No. 1, was Deputy Secretary.
[FR Doc. 2016–00336 Filed 1–11–16; 8:45 am] II. Fiscal Year 2016 Annual Adjustment
published for comment in the Federal
to the Fee Rate
Register on November 24, 2015.5 The BILLING CODE 8011–01–P
Commission received four comments on The new fee rate is determined by (1)
the proposal.6 subtracting the sum of fees estimated to
SECURITIES AND EXCHANGE
Section 19(b)(2) of the Act 7 provides be collected prior to the effective date of
COMMISSION
that, within 45 days of the publication the new fee rate 7 and estimated
of the notice of the filing of a proposed [Release No. 34–76848/January 7, 2016] assessments on security futures
rule change, or within such longer transactions to be collected under
Order Making Fiscal Year 2016 Annual Section 31(d) of the Exchange Act for all
period up to 90 days as the Commission Adjustments to Transaction Fee Rates
may designate if it finds such longer of fiscal year 2016 8 from an amount
period to be appropriate and publishes I. Background equal to the regular appropriation to the
its reasons for so finding, or as to which Section 31 of the Securities Exchange Commission for fiscal year 2016, and (2)
the self-regulatory organization Act of 1934 (‘‘Exchange Act’’) requires dividing by the estimated aggregate
consents, the Commission shall either each national securities exchange and dollar amount of sales for the remainder
approve the proposed rule change, national securities association to pay of the fiscal year following the effective
disapprove the proposed rule change, or transaction fees to the Commission.1 date of the new fee rate.9
institute proceedings to determine Specifically, Section 31(b) requires each The regular appropriation to the
whether the proposed rule change national securities exchange to pay to Commission for fiscal year 2016 is
should be disapproved. The 45th day for the Commission fees based on the $1,605,000,000. The Commission
this filing is January 8, 2016. The aggregate dollar amount of sales of estimates that it will collect
Commission is extending this 45-day certain securities (‘‘covered sales’’) $502,582,684 in fees for the period prior
time period. transacted on the exchange.2 Section to the effective date of the new fee rate
31(c) requires each national securities and $35,649 in assessments on round
The Commission finds that it is
association to pay to the Commission turn transactions in security futures
appropriate to designate a longer period fees based on the aggregate dollar products during all of fiscal year 2016.
within which to take action on the amount of covered sales transacted by or Using a new methodology described
proposed rule change so that it has through any member of the association below, the Commission estimates that
sufficient time to consider the proposed other than on an exchange.3 the aggregate dollar amount of covered
rule change and the comments received. Section 31 of the Exchange Act sales for the remainder of fiscal year
Accordingly, the Commission, pursuant requires the Commission to annually 2016 to be $50,672,728,301,509.
to section 19(b)(2) of the Act,8 adjust the fee rates applicable under
designates February 22, 2016 as the date Sections 31(b) and (c) to a uniform The uniform adjusted rate is
by which the Commission should either adjusted rate.4 Specifically, the computed by dividing the residual fees
approve or disapprove or institute Commission must adjust the fee rates to to be collected of $1,102,381,667 by the
proceedings to determine whether to a uniform adjusted rate that is estimate of the aggregate dollar amount
disapprove the proposed rule change reasonably likely to produce aggregate of covered sales for the remainder of
(File Number SR–BATS–2015–101). fee collections (including assessments fiscal year 2016 of $50,672,728,301,509;
on security futures transactions) equal this results in a uniform adjusted rate
to the regular appropriation to the for fiscal year 2016 of $21.80 per
Commission for the applicable fiscal million.10
3 This proposed rule change is a revised version year.5
of a prior filing, BATS–2015–57, which the The Commission is required to 7 The sum of fees to be collected prior to the

publish notice of the new fee rates effective date of the new fee rate is determined by
Exchange withdrew and revised in order to address
applying the current fee rate to the dollar amount
certain issues raised by comments submitted with under Section 31 not later than 30 days of covered sales prior to the effective date of the
respect to BATS–2015–57. See Securities Exchange after the date on which an Act making new fee rate. The exchanges and FINRA have
Act Release No. 76393 (November 9, 2015), 80 FR a regular appropriation for the provided data on the dollar amount of covered sales
70851 (November 16, 2015) (BATS–2015–57) applicable fiscal year is enacted.6 On through November, 2015. To calculate the dollar
(noticing the withdrawal of BATS–2015–57). amount of covered sales from December, 2015 to the
4 Amendment No. 1 amended and replaced the effective date of the new fee rate, the Commission
1 15 U.S.C. 78ee.
original proposal in its entirety. is using the new methodology described in Section
2 15 U.S.C. 78ee(b).
5 See Securities Exchange Act Release No. 76470
IV of this order.
3 15 U.S.C. 78ee(c). 8 The Commission is using the same methodology
(November 18, 2015), 80 FR 73247 (‘‘Notice’’). 4 In some circumstances, the SEC also must make it has used previously to estimate assessments on
6 See letters from: R.T. Leuchtkafer to Brent J.
a mid-year adjustment to the fee rates applicable security futures transactions to be collected in fiscal
Fields, Secretary, Commission, dated December, 14, under Sections 31(b) and (c). year 2016. An explanation of the methodology
2015; Rick A. Fleming, Investor Advocate, 5 15 U.S.C. 78ee(j)(1) (the Commission must appears in Appendix A.
Commission, to U.S. Securities and Exchange adjust the rates under Sections 31(b) and (c) to a 9 To estimate the aggregate dollar amount of

Commission, dated December 15, 2015; Samuel F. ‘‘uniform adjusted rate that, when applied to the covered sales for the remainder of fiscal year 2016
tkelley on DSK3SPTVN1PROD with NOTICES

Lek, Chief Executive Officer, Lek Securities baseline estimate of the aggregate dollar amount of following the effective date of the new fee rate, the
Corporation, dated December 28, 2015; G.T. sales for such fiscal year, is reasonably likely to Commission is using the new methodology
Spaulding to Brent J. Fields, Secretary, produce aggregate fee collections under [Section 31] referenced above, and described in Section IV of
(including assessments collected under [Section this order.
Commission, dated December, 28, 2015.
31(d)]) that are equal to the regular appropriation 10 Appendix A shows the process of calculating
7 15 U.S.C. 78s(b)(2).
to the Commission by Congress for such fiscal the fiscal year 2016 annual adjustment. The
8 Id.
year.’’). appendix also includes the data used by the
9 17 CFR 200.30–3(a)(31). 6 15 U.S.C. 78ee(g). Commission in making this adjustment.

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Document Created: 2016-01-12 01:22:42
Document Modified: 2016-01-12 01:22:42

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		81 FR 1457