81 FR 22335 - Self-Regulatory Organizations; Bats EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Non-Substantive Correction to Rule 11.27

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 73 (April 15, 2016)

Page Range		22335-22337
FR Document		2016-08647
Federal Register, Volume 81 Issue 73 (Friday, April 15, 2016)
[Federal Register Volume 81, Number 73 (Friday, April 15, 2016)]
[Notices]
[Pages 22335-22337]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-08647]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77582; File No. SR-BatsEDGX-2016-07]


Self-Regulatory Organizations; Bats EDGX Exchange, Inc.; Notice 
of Filing and Immediate Effectiveness of a Non-Substantive Correction 
to Rule 11.27

April 11, 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 April 7, 2016, Bats EDGX Exchange, Inc. (the ``Exchange'' or 
``EDGX'') 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

[[Page 22336]]

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 make one non-substantive 
correction to Exchange Rule 11.27, which implements the Regulation NMS 
Plan to Implement a Tick Size Pilot Program (``Plan'').
    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 recently adopted Rule 11.27(b), which sets forth the 
requirements for the collection and transmission of data pursuant to 
Appendices B and C of the Plan.\5\ The Exchange now proposes to make 
one non-substantive correction to Exchange Rule 11.27 by renumbering it 
as Rule 11.22.\6\ The Rule was incorrectly numbered in the initial 
proposed rule change as the last rule within Chapter XI of the 
Exchange's rulebook is Rule 11.21, Retail Orders. The Exchange now 
propose to renumber it as Rule 11.22 in order to have consecutively 
numbered rules within Chapter XI of its rulebook. Other than 
renumbering the rule as proposed herein, the Exchange does not proposes 
to amend any of the provisions of current Rule 11.27.
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    \5\ See Securities Exchange Act Release No. 77416 (March 22, 
2016) (SR-BatsEDGX-2016-01) (Notice of Filing and Immediate 
Effectiveness of a Proposed Rule Change to Adopt Exchange Rule 11.27 
to Implement the Regulation NMS Plan to Implement a Tick Size Pilot 
Program).
    \6\ The Financial Industry Regulatory Authority, Inc. 
(``FINRA''), on behalf of the Plan Participants submitted a letter 
to Commission requesting exemption from certain provisions of the 
Plan related to data collection. See letter from Marcia E. Asquith, 
Senior Vice President and Corporate Secretary, FINRA dated December 
9, 2015 to Robert W. Errett, Deputy Secretary, Commission 
(``Exemption Request''). The Commission, pursuant to its authority 
under Rule 608(e) of Regulation NMS, granted the Exchange a limited 
exemption from the requirement to comply with certain provisions of 
the Plan as specified in the letter and noted herein. See letter 
from David Shillman, Associate Director, Division of Trading and 
Markets, Commission to Eric Swanson, General Counsel, Exchange, 
dated March 22, 2016 (``Exemption Letter''). While the Exemption 
Letter references current Exchange Rule 11.27, the Exchange 
understands it will continue to apply to the rule when renumbered as 
Rule 11.22.
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    The proposed rule change will be effective on April 4, 2016.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \7\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \8\ in particular, in that it is designed to promote 
just and equitable principles of trade, to foster cooperation and 
coordination with persons engaged in facilitating transactions in 
securities, 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. The Exchange believes that 
this proposal is consistent with the Act because it ensures 
consecutively numbered rules within Chapter XI of its rulebook, thereby 
clarifying the Exchange's rulebook and avoiding potential investor 
confusion.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
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(B) Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
result in any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act. The Exchange 
notes that the proposed rule change is not intended to have a 
competitive impact. It is simply intended to ensure consecutively 
numbered rules within Chapter XI of its rulebook and does not amend any 
of the provisions of current Rule 11.27.

(C) Self-Regulatory Organization's Statement on Comments on the 
Proposed Rule Change Received From Members, Participants or Others

    Written comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the 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 \9\ and Rule 19b-4(f)(6) thereunder.\10\
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written 
notice of its intent to file the proposed rule change, along with a 
brief description and the text of the proposed rule change, at least 
five business days prior to the date of filing of the proposed rule 
change, or such shorter time as designated by the Commission.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \11\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \12\ permits the 
Commission to designate a shorter time if such action is consistent 
with the protection of investors and the public interest. The Exchange 
has asked the Commission to waive the 30-day operative delay. The 
Exchange has stated that the proposed rule change is intended to ensure 
consecutively numbered rules within Chapter XI of the Exchange's 
rulebook and does not amend any of the provisions of current Rule 
11.27. The Commission believes that waiver of the operative delay is 
consistent with the protection of investors and the public interest 
because it may benefit investors by clarifying the Exchange's rulebook 
and avoiding potential investor confusion. Accordingly, the Commission 
hereby waives the operative delay and designates the proposed rule 
change operative upon filing.\13\
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    \11\ 17 CFR 240.19b-4(f)(6).
    \12\ 17 CFR 240.19b-4(f)(6)(iii).
    \13\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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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

[[Page 22337]]

public interest, for the protection of investors, or otherwise in 
furtherance of the purposes of the Act. If the Commission takes such 
action, the Commission shall institute proceedings to determine whether 
the proposed rule change should be approved or disapproved.

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-BatsEDGX-2016-07 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-BatsEDGX-2016-07. 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 the filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-BatsEDGX-2016-07, and should 
be submitted on or before May 6, 2016.

    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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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-08647 Filed 4-14-16; 8:45 am]
 BILLING CODE 8011-01-P
22336 Federal Register / Vol. 81, No. 73 / Friday, April 15, 2016 / Notices

designated this proposal as a ‘‘non- numbered in the initial proposed rule (C) Self-Regulatory Organization’s
controversial’’ proposed rule change change as the last rule within Chapter Statement on Comments on the
pursuant to Section 19(b)(3)(A) of the XI of the Exchange’s rulebook is Rule Proposed Rule Change Received From
Act 3 and Rule 19b–4(f)(6)(iii) 11.21, Retail Orders. The Exchange now Members, Participants or Others
thereunder,4 which renders it effective propose to renumber it as Rule 11.22 in Written comments were neither
upon filing with the Commission. The order to have consecutively numbered solicited nor received.
Commission is publishing this notice to rules within Chapter XI of its rulebook.
solicit comments on the proposed rule Other than renumbering the rule as III. Date of Effectiveness of the
change from interested persons. proposed herein, the Exchange does not Proposed Rule Change and Timing for
proposes to amend any of the provisions Commission Action
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of of current Rule 11.27. Because the proposed rule change
does not (i) significantly affect the
the Proposed Rule Change The proposed rule change will be
protection of investors or the public
The Exchange filed a proposal to effective on April 4, 2016.
interest; (ii) impose any significant
make one non-substantive correction to 2. Statutory Basis burden on competition; and (iii) become
Exchange Rule 11.27, which operative for 30 days from the date on
implements the Regulation NMS Plan to The Exchange believes that its which it was filed, or such shorter time
Implement a Tick Size Pilot Program proposal is consistent with Section 6(b) as the Commission may designate, it has
(‘‘Plan’’). of the Act 7 in general, and furthers the become effective pursuant to Section
The text of the proposed rule change objectives of Section 6(b)(5) of the Act 8 19(b)(3)(A) of the Act 9 and Rule 19b–
is available at the Exchange’s Web site in particular, in that it is designed to 4(f)(6) thereunder.10
at www.batstrading.com, at the promote just and equitable principles of A proposed rule change filed
principal office of the Exchange, and at trade, to foster cooperation and pursuant to Rule 19b–4(f)(6) under the
the Commission’s Public Reference coordination with persons engaged in Act 11 normally does not become
Room. facilitating transactions in securities, to operative for 30 days after the date of its
remove impediments to and perfect the filing. However, Rule 19b–4(f)(6)(iii) 12
II. Self-Regulatory Organization’s
mechanism of a free and open market permits the Commission to designate a
Statement of the Purpose of, and
and a national market system and, in shorter time if such action is consistent
Statutory Basis for, the Proposed Rule
general, to protect investors and the with the protection of investors and the
Change
public interest. The Exchange believes public interest. The Exchange has asked
In its filing with the Commission, the that this proposal is consistent with the the Commission to waive the 30-day
Exchange included statements Act because it ensures consecutively operative delay. The Exchange has
concerning the purpose of and basis for numbered rules within Chapter XI of its stated that the proposed rule change is
the proposed rule change and discussed rulebook, thereby clarifying the intended to ensure consecutively
any comments it received on the Exchange’s rulebook and avoiding numbered rules within Chapter XI of the
proposed rule change. The text of these potential investor confusion. Exchange’s rulebook and does not
statements may be examined at the amend any of the provisions of current
places specified in Item IV below. The (B) Self-Regulatory Organization’s Rule 11.27. The Commission believes
Exchange has prepared summaries, set Statement on Burden on Competition that waiver of the operative delay is
forth in Sections A, B, and C below, of consistent with the protection of
the most significant parts of such The Exchange does not believe that
investors and the public interest
statements. the proposed rule change will result in
because it may benefit investors by
any burden on competition that is not
(A) Self-Regulatory Organization’s clarifying the Exchange’s rulebook and
necessary or appropriate in furtherance
Statement of the Purpose of, and avoiding potential investor confusion.
of the purposes of the Act. The
Statutory Basis for, the Proposed Rule Accordingly, the Commission hereby
Exchange notes that the proposed rule
Change waives the operative delay and
change is not intended to have a
designates the proposed rule change
1. Purpose competitive impact. It is simply
operative upon filing.13
intended to ensure consecutively At any time within 60 days of the
The Exchange recently adopted Rule numbered rules within Chapter XI of its
11.27(b), which sets forth the filing of the proposed rule change, the
rulebook and does not amend any of the Commission summarily may
requirements for the collection and provisions of current Rule 11.27.
transmission of data pursuant to temporarily suspend such rule change if
Appendices B and C of the Plan.5 The it appears to the Commission that such
related to data collection. See letter from Marcia E. action is necessary or appropriate in the
Exchange now proposes to make one Asquith, Senior Vice President and Corporate
non-substantive correction to Exchange Secretary, FINRA dated December 9, 2015 to Robert
9 15
W. Errett, Deputy Secretary, Commission U.S.C. 78s(b)(3)(A).
Rule 11.27 by renumbering it as Rule 10 17
(‘‘Exemption Request’’). The Commission, pursuant CFR 240.19b–4(f)(6). As required under Rule
11.22.6 The Rule was incorrectly to its authority under Rule 608(e) of Regulation 19b–4(f)(6)(iii), the Exchange provided the
NMS, granted the Exchange a limited exemption Commission with written notice of its intent to file
3 15 U.S.C. 78s(b)(3)(A). the proposed rule change, along with a brief
from the requirement to comply with certain
4 17 CFR 240.19b–4(f)(6)(iii). provisions of the Plan as specified in the letter and description and the text of the proposed rule
asabaliauskas on DSK3SPTVN1PROD with NOTICES

5 See Securities Exchange Act Release No. 77416 noted herein. See letter from David Shillman, change, at least five business days prior to the date
(March 22, 2016) (SR–BatsEDGX–2016–01) (Notice Associate Director, Division of Trading and of filing of the proposed rule change, or such
of Filing and Immediate Effectiveness of a Proposed Markets, Commission to Eric Swanson, General shorter time as designated by the Commission.
Counsel, Exchange, dated March 22, 2016 11 17 CFR 240.19b–4(f)(6).
Rule Change to Adopt Exchange Rule 11.27 to
Implement the Regulation NMS Plan to Implement (‘‘Exemption Letter’’). While the Exemption Letter 12 17 CFR 240.19b–4(f)(6)(iii).

a Tick Size Pilot Program). references current Exchange Rule 11.27, the 13 For purposes only of waiving the 30-day
6 The Financial Industry Regulatory Authority, Exchange understands it will continue to apply to operative delay, the Commission has also
Inc. (‘‘FINRA’’), on behalf of the Plan Participants the rule when renumbered as Rule 11.22. considered the proposed rule’s impact on
7 15 U.S.C. 78f(b).
submitted a letter to Commission requesting efficiency, competition, and capital formation. See
exemption from certain provisions of the Plan 8 15 U.S.C. 78f(b)(5). 15 U.S.C. 78c(f).

VerDate Sep<11>2014 17:27 Apr 14, 2016 Jkt 238001 PO 00000 Frm 00129 Fmt 4703 Sfmt 4703 E:\FR\FM\15APN1.SGM 15APN1
Document Created: 2016-04-15 00:55:21
Document Modified: 2016-04-15 00:55:21
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 22335