81_FR_2276 81 FR 2266 - Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rules 27.1, Definitions, and 27.4, Temporary Rule Governing Phase-Out of P and P/A Orders

81 FR 2266 - Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rules 27.1, Definitions, and 27.4, Temporary Rule Governing Phase-Out of P and P/A Orders

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 10 (January 15, 2016)

Page Range2266-2268
FR Document2016-00641

Federal Register, Volume 81 Issue 10 (Friday, January 15, 2016) 
[Federal Register Volume 81, Number 10 (Friday, January 15, 2016)]
[Notices]
[Pages 2266-2268]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-00641]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76864; File No. SR-BATS-2015-122]


Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change to Rules 
27.1, Definitions, and 27.4, Temporary Rule Governing Phase-Out of P 
and P/A Orders

January 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 December 28, 2015, BATS Exchange, Inc. (the ``Exchange'' or 
``BATS'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I and 
II below, which Items have been prepared by the Exchange. The Exchange 
has designated this proposal as a ``non-controversial'' proposed rule 
change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6)(iii) thereunder,\4\ which renders it effective upon filing with 
the Commission. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6)(iii).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange filed a proposal to authorize the BATS Options Market 
(``BATS Options'') to delete its rule entitled ``Temporary Rule 
Governing Phase-Out of P and P/A Orders'' and amend any references in 
the rules to the Plan for the Purpose of Creating and Operating an 
Intermarket Linkage (``Linkage Plan''). \5\
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    \5\ See Chapter XXVII, Intermarket Linkage Rules, Rule 27.4., 
Temporary Rule Governing Phase-Out of P and P/A Orders.
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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 purpose of the proposed rule change is to eliminate existing 
references to the Linkage Plan and also replace any references to the 
Linkage Plan with references to the Options Order Protection and 
Locked/Crossed Market Plan (``Plan'') in order to clarify the current 
rules in effect.
    On February 4, 2010, the Exchange filed the Plan, joining all other 
approved options exchanges in adopting the Plan.\6\ The Plan required 
each options exchange to adopt rules implementing various requirements 
specified in the Plan. The Plan replaced the former Linkage Plan. The 
Linkage Plan required Participating Exchanges \7\ to operate a 
standalone system or ``Linkage'' for sending order-flow between 
exchanges to limit trade-throughs.\8\ The Options Clearing Corporation 
(``OCC'') operated the Linkage system (the ``System'').\9\ The Exchange 
adopted various rules in connection with the Plan to avoid trade-
throughs and locked markets, among other things.\10\ The Exchange 
currently offers private routing directly to away markets.
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    \6\ See Securities Exchange Act Release Nos. 61546 (February 19, 
2010), 75 FR 8762 (February 25, 2010) (Notice of Filing and 
Immediate Effectiveness of Amendment to the Options Order Protection 
and Locked/Crossed Markets Plan to Add the BATS Exchange, Inc. as a 
Participant).
    \7\ The term ``Participating Exchanges'' refers to all options 
exchanges that had been approved to participate in the Linkage Plan.
    \8\ See footnote 6.
    \9\ See footnote 6.
    \10\ See footnote 6.
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    The Exchange adopted a temporary rule entitled ``Temporary Rule 
Governing Phase-Out of P and P/A Orders'' (``Temporary Rule''),\11\ in 
order to facilitate the participation of certain Participating 
Exchanges who may require the use of Principal Acting as Agent Orders 
(``P/A Orders'') \12\ and

[[Page 2267]]

Principal Orders (``P'') \13\ after implementation of the Plan. Certain 
Participating Exchanges required a temporary transition period during 
which they continued to utilize these order types that existed under 
the Linkage Plan. The Exchange proposed substantially similar rules 
with that of the other Participating Exchanges to accommodate the 
possibility of continued use of P/A Orders and P Orders. At this time 
all Participating Exchanges have discontinued use of the Linkage Plan. 
The Exchange proposes at this time to delete this Temporary Rule 
because it is no longer necessary in light of the discontinued use of 
the Linkage Plan. Additionally, the Exchange proposes to amend Section 
17, Definitions, in Chapter XXVII, Intermarket Linkage Rules, to 
redefine ``Plan'' to comport with the Plan.
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    \11\ See Chapter XXVII, Intermarket Linkage Rules, Rule 27.4, 
``Temporary Rule Governing Phase-Out of P and P/A Orders''.
    \12\ A P/A Order is an order for the principal account of a 
Primary Market Maker (or equivalent entity on another Eligible 
Exchange that is authorized to represent Public Customer orders), 
reflecting the terms of a related unexecuted Public Customer order 
for which the Primary Market Maker is acting as agent. See Chapter 
XXVII, Rule 27.4(d)(4)(A).
    \13\ A Principal Order is an order for the principal account of 
a market maker (or equivalent entity on another Eligible Exchange) 
and is not a P/A Order. See Chapter XXVII, Rule 27.4(d)(4)(B).
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    In addition to the changes set forth above, the Exchange proposes 
to add the letter ``(a)'' to Rule 27.1 to conform with the typical 
numbering used in Exchange rules.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with the 
requirements of the Act and the rules and regulations thereunder that 
are applicable to a national securities exchange, and, in particular, 
with the requirements of Section 6(b) of the Act.\14\ In particular, 
the proposal is consistent with Section 6(b)(5) of the Act \15\ because 
it is designed to prevent fraudulent and manipulative acts and 
practices, 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 by proposing 
the elimination of the Temporary Rule, which reflects usage of the 
former Linkage Plan that has been replaced by the Plan. The Exchange 
believes that elimination of the reference to the Temporary Rule will 
help to avoid potential confusion by Members and other market 
participants because the Linkage Plan is and has been in full effect 
for some time, and, therefore, the Temporary Rule is outdated and 
unnecessary.
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    \14\ 15 U.S.C. 78f(b).
    \15\ 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 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. The proposal will simply 
eliminate the Temporary Rule, which is outdated and no longer necessary 
for the reasons described above. Accordingly, the Exchange does not 
believe that the proposal has any competitive effect.

(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 Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \16\ and Rule 19b-4(f)(6) thereunder.\17\ 
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, the proposed rule change has become effective 
pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-4(f)(6) 
thereunder.\18\
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    \16\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \17\ 17 CFR 240.19b-4(f)(6).
    \18\ In addition, Rule 19b-4(f)(6)(iii) requires the Exchange to 
give the Commission written notice of the Exchange's intent to file 
the proposed rule change, along with a brief description and 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. The Exchange has satisfied this 
requirement.
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    A proposed rule change filed under Rule 19b-4(f)(6) normally does 
not become operative for 30 days after the date of filing. However, 
Rule 19b-4(f)(6)(iii) 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 so that the Exchange may eliminate its Temporary 
Rule, which has been replaced by the Plan. The Commission believes that 
removal of the obsolete rule could avoid potential confusion by Members 
and other market participants. Based on the foregoing, the Commission 
believes that waiving the 30-day operative delay is consistent with the 
protection of investors and the public interest.\19\ The Commission 
hereby grants the Exchange's request and designates the proposal 
operative upon filing.
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    \19\ 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 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 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 No. SR-BATS-2015-122 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 No. SR-BATS-2015-122. 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

[[Page 2268]]

proposed rule change between the Commission and any person, other than 
those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549, on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of such filing will also be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File No. SR-BATS-2015-122 and should be 
submitted on or before February 5, 2016.
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    \20\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\20\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-00641 Filed 1-14-16; 8:45 am]
 BILLING CODE 8011-01-P

2266 Federal Register / Vol. 81, No. 10 / Friday, January 15, 2016 / Notices Comments may be submitted by any of SECURITIES AND EXCHANGE proposed rule change. The text of these the following methods: COMMISSION statements may be examined at the places specified in Item IV below. The Electronic Comments [Release No. 34–76864; File No. SR–BATS– Exchange has prepared summaries, set 2015–122] • Use the Commission’s Internet forth in Sections A, B, and C below, of comment form (http://www.sec.gov/ Self-Regulatory Organizations; BATS the most significant parts of such rules/sro.shtml); or Exchange, Inc.; Notice of Filing and statements. Immediate Effectiveness of a Proposed (A) Self-Regulatory Organization’s • Send an email to rule-comments@ Rule Change to Rules 27.1, Definitions, sec.gov. Please include File Number SR– Statement of the Purpose of, and and 27.4, Temporary Rule Governing Statutory Basis for, the Proposed Rule NYSE–2016–06 on the subject line. Phase-Out of P and P/A Orders Change Paper Comments January 11, 2016. 1. Purpose • Send paper comments in triplicate Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the The purpose of the proposed rule to Secretary, Securities and Exchange change is to eliminate existing ‘‘Act’’),1 and Rule 19b–4 thereunder,2 Commission, 100 F Street NE., references to the Linkage Plan and also notice is hereby given that on December Washington, DC 20549–1090. replace any references to the Linkage 28, 2015, BATS Exchange, Inc. (the All submissions should refer to File ‘‘Exchange’’ or ‘‘BATS’’) filed with the Plan with references to the Options Number SR–NYSE–2016–06. This file Securities and Exchange Commission Order Protection and Locked/Crossed number should be included on the (‘‘Commission’’) the proposed rule Market Plan (‘‘Plan’’) in order to clarify subject line if email is used. To help the change as described in Items I and II the current rules in effect. Commission process and review your below, which Items have been prepared On February 4, 2010, the Exchange comments more efficiently, please use by the Exchange. The Exchange has filed the Plan, joining all other approved only one method. The Commission will designated this proposal as a ‘‘non- options exchanges in adopting the post all comments on the Commission’s controversial’’ proposed rule change Plan.6 The Plan required each options pursuant to Section 19(b)(3)(A) of the exchange to adopt rules implementing Internet Web site (http://www.sec.gov/ Act 3 and Rule 19b–4(f)(6)(iii) various requirements specified in the rules/sro.shtml). Copies of the thereunder,4 which renders it effective Plan. The Plan replaced the former submission, all subsequent upon filing with the Commission. The Linkage Plan. The Linkage Plan required amendments, all written statements Commission is publishing this notice to Participating Exchanges 7 to operate a with respect to the proposed rule solicit comments on the proposed rule standalone system or ‘‘Linkage’’ for change that are filed with the change from interested persons. sending order-flow between exchanges Commission, and all written to limit trade-throughs.8 The Options communications relating to the I. Self-Regulatory Organization’s Statement of the Terms of Substance of Clearing Corporation (‘‘OCC’’) operated proposed rule change between the the Linkage system (the ‘‘System’’).9 The Commission and any person, other than the Proposed Rule Change Exchange adopted various rules in those that may be withheld from the The Exchange filed a proposal to connection with the Plan to avoid trade- public in accordance with the authorize the BATS Options Market throughs and locked markets, among provisions of 5 U.S.C. 552, will be (‘‘BATS Options’’) to delete its rule other things.10 The Exchange currently available for Web site viewing and entitled ‘‘Temporary Rule Governing offers private routing directly to away printing in the Commission’s Public Phase-Out of P and P/A Orders’’ and markets. Reference Room, 100 F Street NE., amend any references in the rules to the The Exchange adopted a temporary Washington, DC 20549 on official Plan for the Purpose of Creating and rule entitled ‘‘Temporary Rule business days between the hours of Operating an Intermarket Linkage Governing Phase-Out of P and P/A 10:00 a.m. and 3:00 p.m. Copies of the (‘‘Linkage Plan’’). 5 Orders’’ (‘‘Temporary Rule’’),11 in order The text of the proposed rule change filing also will be available for to facilitate the participation of certain is available at the Exchange’s Web site inspection and copying at the principal Participating Exchanges who may at www.batstrading.com, at the offices of the Exchange. All comments require the use of Principal Acting as principal office of the Exchange, and at received will be posted without change; Agent Orders (‘‘P/A Orders’’) 12 and the Commission’s Public Reference the Commission does not edit personal Room. 6 See Securities Exchange Act Release Nos. 61546 identifying information from (February 19, 2010), 75 FR 8762 (February 25, 2010) submissions. You should submit only II. Self-Regulatory Organization’s (Notice of Filing and Immediate Effectiveness of information that you wish to make Statement of the Purpose of, and Amendment to the Options Order Protection and available publicly. All submissions Statutory Basis for, the Proposed Rule Locked/Crossed Markets Plan to Add the BATS should refer to File Number SR–NYSE– Change Exchange, Inc. as a Participant). 7 The term ‘‘Participating Exchanges’’ refers to all 2016–06, and should be submitted on or In its filing with the Commission, the options exchanges that had been approved to before February 5, 2016. Exchange included statements participate in the Linkage Plan. concerning the purpose of and basis for 8 See footnote 6. For the Commission, by the Division of 9 See footnote 6. Trading and Markets, pursuant to delegated the proposed rule change and discussed 10 See footnote 6. any comments it received on the mstockstill on DSK4VPTVN1PROD with NOTICES authority.9 11 See Chapter XXVII, Intermarket Linkage Rules, Robert W. Errett, 1 15 Rule 27.4, ‘‘Temporary Rule Governing Phase-Out U.S.C. 78s(b)(1). of P and P/A Orders’’. Deputy Secretary. 2 17 CFR 240.19b–4. 12 A P/A Order is an order for the principal 3 15 U.S.C. 78s(b)(3)(A). [FR Doc. 2016–00642 Filed 1–14–16; 8:45 am] account of a Primary Market Maker (or equivalent 4 17 CFR 240.19b–4(f)(6)(iii). BILLING CODE 8011–01–P entity on another Eligible Exchange that is 5 See Chapter XXVII, Intermarket Linkage Rules, authorized to represent Public Customer orders), Rule 27.4., Temporary Rule Governing Phase-Out of reflecting the terms of a related unexecuted Public 9 17 CFR 200.30–3(a)(12). P and P/A Orders. Customer order for which the Primary Market VerDate Sep<11>2014 20:01 Jan 14, 2016 Jkt 238001 PO 00000 Frm 00107 Fmt 4703 Sfmt 4703 E:\FR\FM\15JAN1.SGM 15JAN1

Federal Register / Vol. 81, No. 10 / Friday, January 15, 2016 / Notices 2267 Principal Orders (‘‘P’’) 13 after Temporary Rule is outdated and replaced by the Plan. The Commission implementation of the Plan. Certain unnecessary. believes that removal of the obsolete Participating Exchanges required a rule could avoid potential confusion by (B) Self-Regulatory Organization’s temporary transition period during Members and other market participants. Statement on Burden on Competition which they continued to utilize these Based on the foregoing, the Commission order types that existed under the The Exchange does not believe that believes that waiving the 30-day Linkage Plan. The Exchange proposed the proposed rule change will impose operative delay is consistent with the substantially similar rules with that of any burden on competition that is not protection of investors and the public the other Participating Exchanges to necessary or appropriate in furtherance interest.19 The Commission hereby accommodate the possibility of of the purposes of the Act. The proposal grants the Exchange’s request and continued use of P/A Orders and P will simply eliminate the Temporary designates the proposal operative upon Orders. At this time all Participating Rule, which is outdated and no longer filing. necessary for the reasons described At any time within 60 days of the Exchanges have discontinued use of the above. Accordingly, the Exchange does filing of the proposed rule change, the Linkage Plan. The Exchange proposes at not believe that the proposal has any Commission summarily may this time to delete this Temporary Rule competitive effect. temporarily suspend such rule change if because it is no longer necessary in light of the discontinued use of the Linkage (C) Self-Regulatory Organization’s it appears to the Commission that such Plan. Additionally, the Exchange Statement on Comments on the action is necessary or appropriate in the Proposed Rule Change Received From public interest, for the protection of proposes to amend Section 17, Members, Participants or Others investors, or otherwise in furtherance of Definitions, in Chapter XXVII, the purposes of the Act. If the Intermarket Linkage Rules, to redefine The Exchange has not solicited, and Commission takes such action, the ‘‘Plan’’ to comport with the Plan. does not intend to solicit, comments on Commission shall institute proceedings In addition to the changes set forth this proposed rule change. The to determine whether the proposed rule above, the Exchange proposes to add the Exchange has not received any written should be approved or disapproved. letter ‘‘(a)’’ to Rule 27.1 to conform with comments from members or other the typical numbering used in Exchange interested parties. IV. Solicitation of Comments rules. III. Date of Effectiveness of the Interested persons are invited to Proposed Rule Change and Timing for submit written data, views, and 2. Statutory Basis arguments concerning the foregoing, Commission Action The Exchange believes that its including whether the proposed rule The Exchange has filed the proposed change is consistent with the Act. proposal is consistent with the rule change pursuant to Section Comments may be submitted by any of requirements of the Act and the rules 19(b)(3)(A)(iii) of the Act 16 and Rule the following methods: and regulations thereunder that are 19b–4(f)(6) thereunder.17 Because the applicable to a national securities proposed rule change does not: (i) Electronic Comments exchange, and, in particular, with the Significantly affect the protection of • Use the Commission’s Internet requirements of Section 6(b) of the investors or the public interest; (ii) comment form (http://www.sec.gov/ Act.14 In particular, the proposal is impose any significant burden on rules/sro.shtml); or consistent with Section 6(b)(5) of the competition; and (iii) become operative • Send an email to rule-comments@ Act 15 because it is designed to prevent for 30 days from the date on which it sec.gov. Please include File No. SR– fraudulent and manipulative acts and was filed, or such shorter time as the BATS–2015–122 on the subject line. practices, to promote just and equitable Commission may designate, the principles of trade, to foster cooperation Paper Comments proposed rule change has become and coordination with persons engaged effective pursuant to Section 19(b)(3)(A) • Send paper comments in triplicate in facilitating transactions in securities, of the Act and Rule 19b–4(f)(6) to Secretary, Securities and Exchange to remove impediments to, and perfect thereunder.18 Commission, 100 F Street NE., the mechanism of, a free and open A proposed rule change filed under Washington, DC 20549–1090. market and a national market system Rule 19b-4(f)(6) normally does not All submissions should refer to File No. and, in general, to protect investors and become operative for 30 days after the SR–BATS–2015–122. This file number the public interest by proposing the date of filing. However, Rule 19b– should be included on the subject line elimination of the Temporary Rule, 4(f)(6)(iii) permits the Commission to if email is used. To help the which reflects usage of the former designate a shorter time if such action Commission process and review your Linkage Plan that has been replaced by is consistent with the protection of comments more efficiently, please use the Plan. The Exchange believes that investors and the public interest. The only one method. The Commission will elimination of the reference to the Exchange has asked the Commission to post all comments on the Commission’s Temporary Rule will help to avoid waive the 30-day operative delay so that Internet Web site (http://www.sec.gov/ potential confusion by Members and the Exchange may eliminate its rules/sro.shtml). Copies of the other market participants because the Temporary Rule, which has been submission, all subsequent Linkage Plan is and has been in full amendments, all written statements effect for some time, and, therefore, the 16 15 U.S.C. 78s(b)(3)(A)(iii). with respect to the proposed rule 17 17 CFR 240.19b–4(f)(6). change that are filed with the mstockstill on DSK4VPTVN1PROD with NOTICES 18 In addition, Rule 19b–4(f)(6)(iii) requires the Maker is acting as agent. See Chapter XXVII, Rule Commission, and all written Exchange to give the Commission written notice of 27.4(d)(4)(A). the Exchange’s intent to file the proposed rule communications relating to the 13 A Principal Order is an order for the principal change, along with a brief description and text of account of a market maker (or equivalent entity on the proposed rule change, at least five business days 19 For purposes only of waiving the 30-day another Eligible Exchange) and is not a P/A Order. prior to the date of filing of the proposed rule operative delay, the Commission has also See Chapter XXVII, Rule 27.4(d)(4)(B). change, or such shorter time as designated by the considered the proposed rule’s impact on 14 15 U.S.C. 78f(b). Commission. The Exchange has satisfied this efficiency, competition, and capital formation. See 15 15 U.S.C. 78f(b)(5). requirement. 15 U.S.C. 78c(f). 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2268 Federal Register / Vol. 81, No. 10 / Friday, January 15, 2016 / Notices proposed rule change between the options and application of the fees month for each port pair other than Commission and any person, other than assessed thereunder. Multicast ITCH data feed pairs and TCP those that may be withheld from the The text of the proposed rule change ITCH data feed pairs. Under the $500 public in accordance with the is available on the Exchange’s Web site per port, per month connectivity option provisions of 5 U.S.C. 552, will be at http:// a member firm may subscribe to an available for Web site viewing and nasdaqomxbx.cchwallstreet.com, at the OUCH protocol trading port, a FIX printing in the Commission’s Public principal office of the Exchange, and at Trading Port (either a FIX or FIX Lite Reference Room, 100 F Street NE., the Commission’s Public Reference protocol),3 RASH protocol trading port, Washington, DC 20549, on official Room. and DROP ports. BX is listing separately business days between the hours of each of the options available under the II. Self-Regulatory Organization’s rule. BX also offers trading ports that 10:00 a.m. and 3:00 p.m. Copies of such Statement of the Purpose of, and may be used only in test mode. Member filing will also be available for Statutory Basis for, the Proposed Rule firms may subscribe to these test mode inspection and copying at the principal Change trading ports at no cost, which are office of the Exchange. All comments received will be posted without change; In its filing with the Commission, the exclusively used for testing purposes the Commission does not edit personal Exchange included statements and may not be used for trading in identifying information from concerning the purpose of and basis for securities in the System. The Exchange submissions. You should submit only the proposed rule change and discussed is adding rule text noting that these test information that you wish to make any comments it received on the ports may be subscribed to under the available publicly. All submissions proposed rule change. The text of these rule. The Exchange also provides data should refer to File No. SR–BATS– statements may be examined at the retransmission ports at no cost. Data 2015–122 and should be submitted on places specified in Item IV below. The retransmission ports allow a subscriber or before February 5,2016. Exchange has prepared summaries, set to replay market data, in the event the forth in sections A, B, and C below, of data was missed in a live feed or for For the Commission, by the Division of Trading and Markets, pursuant to delegated the most significant aspects of such verification purposes. Data authority.20 statements. retransmission ports only allow replay of the current trading day and do not Robert W. Errett, A. Self-Regulatory Organization’s provide data concerning prior trading Deputy Secretary. Statement of the Purpose of, and days’ data. The Exchange is adding rule [FR Doc. 2016–00641 Filed 1–14–16; 8:45 am] Statutory Basis for, the Proposed Rule text noting that data retransmission BILLING CODE 8011–01–P Change ports may be subscribed to under the 1. Purpose rule. Third, BX is proposing to eliminate SECURITIES AND EXCHANGE Rule 7015 provides the charges BX Internet Ports. Internet ports are based COMMISSION assesses for equity securities market on outdated technology and BX does not connectivity to systems operated by BX. have any subscribers to this [Release No. 34–76868; File No. SR–BX– BX is amending Rule 7015 in three 2015–087] connectivity method. ways: (1) To clarify the term ‘‘port pair’’; (2) to clarify the connectivity options 2. Statutory Basis Self-Regulatory Organizations; available under the rule; and (3) to The Exchange believes the proposed NASDAQ OMX BX, Inc.; Notice of Filing eliminate internet ports as a rule change is consistent with Section and Immediate Effectiveness of connectivity option. 6(b) of the Act,4 in general, and furthers Proposed Rule Change To Amend Rule First, BX is proposing to clarify the the objectives of Sections 6(b)(4) and 7015 use of the term ‘‘port pair.’’ For certain 6(b)(5) of the Act,5 in particular, in that January 11, 2016. ports under Rule 7015 that are used for it provides for the equitable allocation Pursuant to Section 19(b)(1) of the either trading or data, BX additionally of reasonable dues, fees and other Securities Exchange Act of 1934 provides a disaster recovery port at no charges among members and issuers and (‘‘Act’’),1 and Rule 19b–4 thereunder,2 cost. Such a disaster recovery port other persons using any facility or notice is hereby given that on December provides connectivity to BX’s disaster system which BX operates or controls, 29, 2015, NASDAQ OMX BX, Inc. (‘‘BX’’ recovery location in the event of a and is designed to prevent fraudulent or ‘‘Exchange’’) filed with the Securities failure of BX’s primary trading and manipulative acts and practices, to and Exchange Commission (‘‘SEC’’ or infrastructure. BX has provided disaster promote just and equitable principles of ‘‘Commission’’) the proposed rule recovery ports at no cost since 2009 to trade, to foster cooperation and change as described in Items I, II, and encourage member firms to maintain coordination with persons engaged in III, below, which Items have been such connectivity in the event of a regulating, clearing, settling, processing prepared by the Exchange. The market disruption so that the market as information with respect to, and Commission is publishing this notice to a whole could continue to operate. In facilitating transactions in securities, to solicit comments on the proposed rule the interest of clarity, the Exchange is change from interested persons. proposing to eliminate the term port 3 A FIX port is a trading port using a FIX-based pair and to separately list disaster telecommunication protocol. FIX, an abbreviation I. Self-Regulatory Organization’s recovery ports as a connectivity option for Financial Information eXchange, is a standard Statement of the Terms of Substance of message protocol that defines an electronic message mstockstill on DSK4VPTVN1PROD with NOTICES available at no cost under the rule. exchange for communicating securities transactions the Proposed Rule Change Second, BX is reorganizing and between two parties. BX offers two FIX-based The Exchange proposes to amend BX adding language to Rule 7015 to list all trading ports, which vary based on messaging Rule 7015 to clarify the connectivity connectivity provided by BX under the formats and capability. BX is proposing to list these two protocols as options under the rule that a rule, which is currently subsumed in a member firm may select when subscribing to a FIX 20 17 CFR 200.30–3(a)(12). connectivity option and related fee. trading port. 1 15 U.S.C. 78s(b)(1). Specifically, the Exchange currently 4 15 U.S.C. 78f(b). 2 17 CFR 240.19b–4. offers connectivity for $500 per port, per 5 15 U.S.C. 78f(b)(4) and (5). VerDate Sep<11>2014 20:01 Jan 14, 2016 Jkt 238001 PO 00000 Frm 00109 Fmt 4703 Sfmt 4703 E:\FR\FM\15JAN1.SGM 15JAN1


Document Created: 2018-02-02 12:32:00
Document Modified: 2018-02-02 12:32:00
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 2266 
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