81_FR_1663 81 FR 1655 - Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees for Use of BATS Exchange, Inc.

81 FR 1655 - Self-Regulatory Organizations; 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 8 (January 13, 2016)

Page Range1655-1656
FR Document2016-00462

Federal Register, Volume 81 Issue 8 (Wednesday, January 13, 2016) 
[Federal Register Volume 81, Number 8 (Wednesday, January 13, 2016)]
[Notices]
[Pages 1655-1656]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-00462]



[[Page 1655]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76844; File No. SR-BATS-2015-123]


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

January 7, 2016.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on December 30, 2015, BATS Exchange, Inc. (the ``Exchange'' or 
``BATS'') filed with the Securities and Exchange Commission (``SEC'' or 
``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.
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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)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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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 the fee schedule applicable 
to Members \5\ and non-members of the Exchange pursuant to BATS Rules 
15.1(a) and (c) (``Fee Schedule''). The changes to the Fee Schedule 
pursuant to this proposal are effective upon filing.
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    \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).
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    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 increase the standard rate for routing and 
removing liquidity from other market centers for both securities priced 
at or above $1.00 and for securities priced below $1.00. Specifically, 
the Exchange proposes to increase the fee for orders yielding fee code 
X, which results from an order routed to a displayed market that 
removes liquidity using the Parallel D, Parallel 2D, ROUT, ROUX \6\ or 
Post to Away \7\ routing strategy from $0.0029 to $0.0030 per share in 
securities priced at or above $1.00 and from 0.29% to 0.30% of total 
dollar value in securities priced below $1.00. The Exchange proposes to 
reflect these changes to the Fee Schedule in the Standard Rates table, 
the Fee Codes and Associated Fees table, and in Footnote 8. In addition 
to the increase to the Exchange's standard routing fee, the Exchange 
proposes to increase the fee for orders yielding field code Z, which 
results from an order routed to a dark liquidity venue (except through 
the SLIM routing strategy) from $0.00200 to $0.00250 per share.
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    \6\ Parallel D, Parallel 2D, ROUT, and ROUX are the Exchange's 
standard best execution routing strategies and are further described 
in Rule 11.13(b)(3)(A), (B), and (G).
    \7\ Post to Away is a routing strategy that posts an order on 
another market center. Although the Post to Away routing strategy 
had various specific fees and rebates for adding liquidity on other 
market centers, Post to Away routed orders can potentially remove 
liquidity and are charged the Exchange's standard routing fee when 
they do. See Rule 11.13(b)(3)(H).
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Implementation Date
    The Exchange proposes to implement these amendments to its Fee 
Schedule January 4, 2016.\8\
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    \8\ The Exchange notes that the date of the Fee Schedule was 
amended to January 4, 2016 in a separate fee filing. See Securities 
Exchange Act Release No. 76709 (December 21, 2015), 80 FR 80827 
(December 28, 2015) (SR-BATS-2015-115).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of Section 6 of the Act,\9\ in general, and 
furthers the objectives of Section 6(b)(4),\10\ in particular, as it is 
designed to provide for the equitable allocation of reasonable dues, 
fees and other charges among its Members and other persons using its 
facilities. The Exchange believes that its proposal to increase the 
standard rate for routing and removing liquidity in securities priced 
at or above $1.00 and in securities priced below $1.00 for Parallel D, 
Parallel 2D, ROUT, ROUX, and Post to Away routed executions and the 
increased fee for orders routed to a dark liquidity venue represents an 
equitable allocation of reasonable dues, fees, and other charges among 
Members and other persons using its facilities in that they are 
designed to, in part, cover the costs of routing. While Members that 
route orders through the Exchange's standard routing strategies will be 
paying higher fees due to the proposal, the increased revenue received 
by the Exchange will be used to fund the Exchange generally, including 
the cost of maintaining and improving the technology used to handle and 
route orders from the Exchange as well as programs that the Exchange 
believes help to attract additional liquidity and thus improve the 
depth of liquidity available on the Exchange. Accordingly, although the 
cost of routing is increasing, the Exchange believes that the increase 
is a modest increase and that higher routing fees will benefit Members 
in other ways. Furthermore, the Exchange notes that routing through the 
Exchange is voluntary. Lastly, the Exchange also believes that the 
proposed amendment is non-discriminatory because it applies uniformly 
to all Members.
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    \9\ 15 U.S.C. 78f.
    \10\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    These proposed rule changes do not impose any burden on competition 
that is not necessary or appropriate in furtherance of the purposes of 
the Act. The Exchange does not believe that any of these changes 
represent a significant departure from previous pricing offered by the 
Exchange or pricing offered by the Exchange's competitors. 
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 will impair the 
ability of Members or competing venues to maintain their competitive 
standing in the financial markets. The Exchange believes that its 
proposal would not burden intramarket competition because

[[Page 1656]]

the proposed rate would apply uniformly to all Members.

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 unsolicited 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 \11\ and paragraph (f) of Rule 19b-4 
thereunder.\12\ 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.
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f).
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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-BATS-2015-123 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-2015-123. 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 offices 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-2015-123, 
and should be submitted on or before February 3, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-00462 Filed 1-12-16; 8:45 am]
BILLING CODE 8011-01-P

Federal Register / Vol. 81, No. 8 / Wednesday, January 13, 2016 / Notices 1655 SECURITIES AND EXCHANGE any comments it received on the Section 6(b)(4),10 in particular, as it is COMMISSION proposed rule change. The text of these designed to provide for the equitable statements may be examined at the allocation of reasonable dues, fees and [Release No. 34–76844; File No. SR–BATS– 2015–123] places specified in Item IV below. The other charges among its Members and Exchange has prepared summaries, set other persons using its facilities. The Self-Regulatory Organizations; BATS forth in Sections A, B, and C below, of Exchange believes that its proposal to Exchange, Inc.; Notice of Filing and the most significant parts of such increase the standard rate for routing Immediate Effectiveness of a Proposed statements. and removing liquidity in securities Rule Change Related to Fees for Use A. Self-Regulatory Organization’s priced at or above $1.00 and in of BATS Exchange, Inc. Statement of the Purpose of, and securities priced below $1.00 for Statutory Basis for, the Proposed Rule Parallel D, Parallel 2D, ROUT, ROUX, January 7, 2016. and Post to Away routed executions and Pursuant to Section 19(b)(1) of the Change the increased fee for orders routed to a Securities Exchange Act of 1934 1. Purpose dark liquidity venue represents an (‘‘Act’’),1 and Rule 19b–4 thereunder,2 The Exchange proposes to increase equitable allocation of reasonable dues, notice is hereby given that on December the standard rate for routing and fees, and other charges among Members 30, 2015, BATS Exchange, Inc. (the removing liquidity from other market and other persons using its facilities in ‘‘Exchange’’ or ‘‘BATS’’) filed with the centers for both securities priced at or that they are designed to, in part, cover Securities and Exchange Commission above $1.00 and for securities priced the costs of routing. While Members that (‘‘SEC’’ or ‘‘Commission’’) the proposed below $1.00. Specifically, the Exchange route orders through the Exchange’s rule change as described in Items I, II, proposes to increase the fee for orders standard routing strategies will be and III below, which Items have been yielding fee code X, which results from paying higher fees due to the proposal, prepared by the Exchange. The an order routed to a displayed market the increased revenue received by the Exchange has designated the proposed that removes liquidity using the Parallel Exchange will be used to fund the rule change as one establishing or D, Parallel 2D, ROUT, ROUX 6 or Post to Exchange generally, including the cost changing a member due, fee, or other Away 7 routing strategy from $0.0029 to of maintaining and improving the charge imposed by the Exchange under $0.0030 per share in securities priced at technology used to handle and route Section 19(b)(3)(A)(ii) of the Act 3 and or above $1.00 and from 0.29% to orders from the Exchange as well as Rule 19b–4(f)(2) thereunder,4 which 0.30% of total dollar value in securities programs that the Exchange believes renders the proposed rule change priced below $1.00. The Exchange help to attract additional liquidity and effective upon filing with the proposes to reflect these changes to the thus improve the depth of liquidity Commission. The Commission is Fee Schedule in the Standard Rates available on the Exchange. Accordingly, publishing this notice to solicit table, the Fee Codes and Associated although the cost of routing is comments on the proposed rule change Fees table, and in Footnote 8. In increasing, the Exchange believes that from interested persons. addition to the increase to the the increase is a modest increase and I. Self-Regulatory Organization’s Exchange’s standard routing fee, the that higher routing fees will benefit Statement of the Terms of Substance of Exchange proposes to increase the fee Members in other ways. Furthermore, the Proposed Rule Change for orders yielding field code Z, which the Exchange notes that routing through results from an order routed to a dark the Exchange is voluntary. Lastly, the The Exchange filed a proposal to liquidity venue (except through the Exchange also believes that the amend the fee schedule applicable to SLIM routing strategy) from $0.00200 to proposed amendment is non- Members 5 and non-members of the $0.00250 per share. discriminatory because it applies Exchange pursuant to BATS Rules Implementation Date uniformly to all Members. 15.1(a) and (c) (‘‘Fee Schedule’’). The changes to the Fee Schedule pursuant to The Exchange proposes to implement B. Self-Regulatory Organization’s this proposal are effective upon filing. these amendments to its Fee Schedule Statement on Burden on Competition The text of the proposed rule change January 4, 2016.8 is available at the Exchange’s Web site These proposed rule changes do not at www.batstrading.com, at the 2. Statutory Basis impose any burden on competition that principal office of the Exchange, and at The Exchange believes that the is not necessary or appropriate in the Commission’s Public Reference proposed rule change is consistent with furtherance of the purposes of the Act. Room. the objectives of Section 6 of the Act,9 The Exchange does not believe that any in general, and furthers the objectives of of these changes represent a significant II. Self-Regulatory Organization’s departure from previous pricing offered Statement of the Purpose of, and 6 Parallel D, Parallel 2D, ROUT, and ROUX are by the Exchange or pricing offered by Statutory Basis for, the Proposed Rule the Exchange’s standard best execution routing the Exchange’s competitors. Change strategies and are further described in Rule Additionally, Members may opt to 11.13(b)(3)(A), (B), and (G). disfavor the Exchange’s pricing if they In its filing with the Commission, the 7 Post to Away is a routing strategy that posts an Exchange included statements order on another market center. Although the Post believe that alternatives offer them concerning the purpose of and basis for to Away routing strategy had various specific fees better value. Accordingly, the Exchange the proposed rule change and discussed and rebates for adding liquidity on other market does not believe that the proposed asabaliauskas on DSK5VPTVN1PROD with NOTICES centers, Post to Away routed orders can potentially changes will impair the ability of remove liquidity and are charged the Exchange’s 1 15 U.S.C. 78s(b)(1). standard routing fee when they do. See Rule Members or competing venues to 2 17 CFR 240.19b–4. 11.13(b)(3)(H). maintain their competitive standing in 3 15 U.S.C. 78s(b)(3)(A)(ii). 8 The Exchange notes that the date of the Fee the financial markets. The Exchange 4 17 CFR 240.19b–4(f)(2). Schedule was amended to January 4, 2016 in a believes that its proposal would not 5 The term ‘‘Member’’ is defined as ‘‘any separate fee filing. See Securities Exchange Act Release No. 76709 (December 21, 2015), 80 FR burden intramarket competition because registered broker or dealer that has been admitted to membership in the Exchange.’’ See Exchange 80827 (December 28, 2015) (SR–BATS–2015–115). Rule 1.5(n). 9 15 U.S.C. 78f. 10 15 U.S.C. 78f(b)(4). VerDate Sep<11>2014 16:59 Jan 12, 2016 Jkt 238001 PO 00000 Frm 00058 Fmt 4703 Sfmt 4703 E:\FR\FM\13JAN1.SGM 13JAN1

1656 Federal Register / Vol. 81, No. 8 / Wednesday, January 13, 2016 / Notices the proposed rate would apply Commission, and all written business trusts registered under the Act uniformly to all Members. communications relating to the as an open-end management investment proposed rule change between the company with multiple series, C. Self-Regulatory Organization’s Commission and any person, other than Columbia Management Investment Statement on Comments on the those that may be withheld from the Advisers, LLC (the ‘‘Adviser’’), a Proposed Rule Change Received From public in accordance with the Members, Participants, or Others Minnesota limited liability company provisions of 5 U.S.C. 552, will be registered as an investment adviser The Exchange has not solicited, and available for Web site viewing and under the Investment Advisers Act of does not intend to solicit, comments on printing in the Commission’s Public 1940 and Columbia Management this proposed rule change. The Reference Room, 100 F Street NE., Investment Distributors, Inc. (the Exchange has not received any Washington, DC 20549 on official ‘‘Distributor’’), a Delaware Corporation unsolicited written comments from business days between the hours of registered as a broker-dealer under the Members or other interested parties. 10:00 a.m. and 3:00 p.m. Copies of such Securities Exchange Act of 1934 filing also will be available for (‘‘Exchange Act’’). III. Date of Effectiveness of the inspection and copying at the principal Proposed Rule Change and Timing for offices of the Exchange. All comments DATES: Filing Dates: The application was Commission Action received will be posted without change; filed on January 6, 2015, and amended The foregoing rule change has become the Commission does not edit personal on May 27, 2015 and December 24, effective pursuant to Section 19(b)(3)(A) identifying information from 2015. of the Act 11 and paragraph (f) of Rule submissions. You should submit only 19b–4 thereunder.12 At any time within information that you wish to make HEARING OR NOTIFICATION OF HEARING: An 60 days of the filing of the proposed rule available publicly. All submissions order granting the requested relief will change, the Commission summarily may should refer to File Number SR–BATS– be issued unless the Commission orders temporarily suspend such rule change if 2015–123, and should be submitted on a hearing. Interested persons may it appears to the Commission that such or before February 3, 2016. request a hearing by writing to the action is necessary or appropriate in the Commission’s Secretary and serving For the Commission, by the Division of public interest, for the protection of Trading and Markets, pursuant to delegated applicants with a copy of the request, investors, or otherwise in furtherance of authority.13 personally or by mail. Hearing requests the purposes of the Act. Robert W. Errett, should be received by the Commission Deputy Secretary. by 5:30 p.m. on Tuesday, February 2, IV. Solicitation of Comments 2016 and should be accompanied by [FR Doc. 2016–00462 Filed 1–12–16; 8:45 am] Interested persons are invited to proof of service on the applicants, in the BILLING CODE 8011–01–P submit written data, views, and form of an affidavit, or, for lawyers, a arguments concerning the foregoing, certificate of service. Pursuant to Rule including whether the proposed rule SECURITIES AND EXCHANGE 0–5 under the Act, hearing requests change is consistent with the Act. COMMISSION should state the nature of the writer’s Comments may be submitted by any of interest, any facts bearing upon the the following methods: Investment Company Act Release No. desirability of a hearing on the matter, Electronic Comments 31953; File No. 812–14411 Columbia the reason for the request, and the issues Funds Series Trust I, et al.; Notice of contested. Persons who wish to be • Use the Commission’s Internet Application notified of a hearing may request comment form (http://www.sec.gov/ notification by writing to the rules/sro.shtml); or January 7, 2016. Commission’s Secretary. • Send an email to rule-comments@ AGENCY: Securities and Exchange sec.gov. Please include File Number SR– Commission (‘‘Commission’’). ADDRESSES: Secretary, U.S. Securities BATS–2015–123 on the subject line. ACTION: Notice of an application for an and Exchange Commission, 100 F Street order under section 12(d)(1)(J) of the NE., Washington, DC 20549–1090. Paper Comments Investment Company Act of 1940 (the Applicants: c/o Brian D. McCabe, Esq. • Send paper comments in triplicate ‘‘Act’’) for an exemption from sections and Nathan D. Somogie, Esq., Ropes & to Secretary, Securities and Exchange 12(d)(1)(A) and (B) of the Act and under Gray LLP, Prudential Tower, 800 Commission, 100 F Street NE., sections 6(c) and 17(b) of the Act for an Boylston Street, Boston, MA 02199– Washington, DC 20549–1090. exemption from sections 17(a)(1) and (2) 3600. All submissions should refer to File of the Act. The requested order would Number SR–BATS–2015–123. This file permit certain registered open-end FOR FURTHER INFORMATION CONTACT: number should be included on the investment companies to acquire shares Michael S. Didiuk, Senior Counsel, at subject line if email is used. To help the of certain registered open-end (202) 551–6839, or Holly Hunter-Ceci, Commission process and review your investment companies and unit Branch Chief, at (202) 551–6825 comments more efficiently, please use investment trusts (collectively, (Division of Investment Management, only one method. The Commission will ‘‘Underlying Funds’’) that are within Chief Counsel’s Office). post all comments on the Commission’s and outside the same group of SUPPLEMENTARY INFORMATION: The asabaliauskas on DSK5VPTVN1PROD with NOTICES Internet Web site (http://www.sec.gov/ investment companies as the acquiring following is a summary of the rules/sro.shtml). Copies of the investment companies, in excess of the application. The complete application submission, all subsequent limits in section 12(d)(1) of the Act. amendments, all written statements may be obtained via the Commission’s with respect to the proposed rule APPLICANTS: Columbia Funds Series Web site by searching for the file change that are filed with the Trust I and Columbia Funds Variable number, or for an applicant using the Insurance Trust, each Massachusetts Company name box, at http:// 11 15 U.S.C. 78s(b)(3)(A). www.sec.gov/search/search.htm, or by 12 17 CFR 240.19b–4(f). 13 17 CFR 200.30–3(a)(12). calling (202) 551–8090. 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Document Created: 2016-01-13 01:01:15
Document Modified: 2016-01-13 01:01:15
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation81 FR 1655 
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