81_FR_23096 81 FR 23021 - Self-Regulatory Organizations; Bats BYX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Certificate of Incorporation of the Exchange's Ultimate Parent Company, Bats Global Markets, Inc.

81 FR 23021 - Self-Regulatory Organizations; Bats BYX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Certificate of Incorporation of the Exchange's Ultimate Parent Company, Bats Global Markets, Inc.

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 75 (April 19, 2016)

Page Range23021-23023
FR Document2016-08938

Federal Register, Volume 81 Issue 75 (Tuesday, April 19, 2016) 
[Federal Register Volume 81, Number 75 (Tuesday, April 19, 2016)]
[Notices]
[Pages 23021-23023]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-08938]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77600; File No. SR-BatsBYX-2016-04]


Self-Regulatory Organizations; Bats BYX Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend 
the Certificate of Incorporation of the Exchange's Ultimate Parent 
Company, Bats Global Markets, Inc.

April 13, 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 8, 2016, Bats BYX Exchange, Inc. (the ``Exchange'' or 
``BYX'') 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 amend the certificate of 
incorporation of the Exchange's ultimate parent company, Bats Global 
Markets, Inc. (the ``Corporation'').
    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
    On December 16, 2015, the Corporation, the ultimate parent entity 
of the Exchange, filed a registration statement on Form S-1 with the 
Commission seeking to register shares of common stock and to conduct an 
initial public offering of those shares, which will be listed for 
trading on the Exchange (the ``IPO''). In connection with its IPO, the 
Corporation intends to amend and restate its certificate of 
incorporation (the ``New Certificate of Incorporation''). The Exchange 
previously received Commission approval of certain substantive 
amendments to the certificate of incorporation of the Corporation that 
comprise changes included in the New Certificate of Incorporation.\5\ 
Since that date, the Corporation has determined it to be necessary to 
further amend its certificate of incorporation to achieve the final, 
pre-IPO version of the New Certificate of Incorporation. The additional 
amendments will be achieved through the filing with the State of 
Delaware of a certificate of

[[Page 23022]]

amendment to the New Certificate of Incorporation. The additional 
amendments are described in further detail below.
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    \5\ See Securities Exchange Act Release No. 77464 (March 29, 
2016), 81 FR 19252 (April 1, 2016) (SR-BATS-2016-010; SR-BYX-2016-
02; SR-EDGX-2016-04; SR-EDGA-2016-01).
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    The Exchange, on behalf of the Corporation, proposes changes to the 
New Certificate of Incorporation in connection with a forward stock 
split, pursuant to which each share of common stock of the Corporation 
outstanding or held in treasury immediately prior to the completion of 
the IPO would automatically and without action on the part of the 
holders thereof be subdivided into 2.91 shares of common stock (the 
``Stock Split'').\6\ Accordingly, the number of authorized shares of 
the Corporation, both in the aggregate and as set forth by class, as 
codified in paragraph (a)(i) of Article Fourth of the New Certificate 
of Incorporation, will be adjusted. The Corporation also plans to 
adjust the preferred stock of the Corporation consistent with the Stock 
Split. The par value of the Corporation's common stock will remain 
$0.01 per share.
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    \6\ Common stock consists of voting common stock and non-voting 
common stock of the Corporation.
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    The purpose of this rule filing is to permit the Corporation, the 
ultimate parent company of the Exchange, to adopt an amendment to the 
New Certificate of Incorporation, as described in this proposal. The 
changes described herein relate to the certificate of incorporation of 
the Corporation only, not to the governance of the Exchange. The 
Exchange will continue to be governed by its existing certificate of 
incorporation and bylaws. The stock in, and voting power of, the 
Exchange will continue to be directly and solely held by Bats Global 
Markets Holdings, Inc., an intermediate holding company wholly-owned by 
the Corporation, and the governance of the Exchange will continue under 
its existing structure.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with the 
requirements of the Act and 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.\7\ In particular, the 
proposal is consistent with Section 6(b)(1) of the Act, because it 
retains, without modification, the existing limitations on ownership 
and total voting power that currently exist and that are designed to 
prevent any stockholder from exercising undue control over the 
operation of the Exchange and to assure that the Exchange is able to 
carry out its regulatory obligations under the Act. Under the proposal, 
the Corporation is making certain administrative and structural changes 
to the New Certificate of Incorporation. These changes, however, do not 
impact the governance of the Exchange nor do they modify the ownership 
of the Corporation.
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    \7\ 15 U.S.C. 78f(b).
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(B) Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change imposes 
any burden on competition. As described above, the proposed rule change 
is simply to make certain administrative and structural changes to the 
New Certificate of Incorporation. These changes do not impact the 
governance of the Exchange nor do they modify the ownership of the 
Corporation.

(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 \8\ and Rule 19b-4(f)(6) thereunder.\9\ 
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, if consistent with the protection of 
investors and the public interest, the proposed rule change has become 
effective pursuant to Section 19(b)(3)(A) of the Act \10\ and Rule 19b-
4(f)(6) thereunder.\11\
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    \8\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \9\ 17 CFR 240.19b-4(f)(6).
    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 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) under the Act 
\12\ normally does not become operative for 30 days after the date of 
filing. However, Rule 19b-4(f)(6)(iii) \13\ 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 proposal 
may become operative immediately upon filing. The Exchange states that 
the Corporation's IPO may occur in the near future, and the changes 
described in this notice are a critical component of such IPO. The 
Exchange states that waiver of the operative delay will allow the 
Corporation to promptly move forward with the IPO without delay. The 
Commission notes that the Exchange represents that there are no changes 
to the provisions of the New Certificate of Incorporation that impact 
the ownership or governance of the Exchange, and that instead, the 
amendments reflect administrative and structural amendments to the New 
Certificate of Incorporation. 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.\14\ The Commission 
hereby grants the Exchange's request and designates the proposal 
operative upon filing.
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    \12\ 17 CFR 240.19b-4(f)(6).
    \13\ 17 CFR 240.19b-4(f)(6)(iii).
    \14\ 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 Number SR-BatsBYX-2016-04 on the subject line.

[[Page 23023]]

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-BatsBYX-2016-04. 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-BatsBYX-2016-04 and should 
be submitted on or before May 10, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-08938 Filed 4-18-16; 8:45 am]
BILLING CODE 8011-01-P

Federal Register / Vol. 81, No. 75 / Tuesday, April 19, 2016 / Notices 23021 In 2008, pursuant to PAEA section V. Ordering Paragraphs I. Self-Regulatory Organization’s 702(a), the Commission issued an in- Statement of the Terms of Substance of depth report on universal postal service It is ordered: the Proposed Rule Change and the postal monopoly.24 The USO 1. The Commission establishes Docket The Exchange filed a proposal to Report reviews the historical No. PI2016–3 and invites public amend the certificate of incorporation of development of the USO and postal comments on the operation of the the Exchange’s ultimate parent monopoly, universal service and amendments of the Postal company, Bats Global Markets, Inc. (the monopoly laws of other countries, Accountability and Enhancement Act. ‘‘Corporation’’). economic considerations, needs and 2. Comments are due no later than The text of the proposed rule change expectations of the United States public, June 14, 2016. is available at the Exchange’s Web site policy options, and Commission at www.batstrading.com, at the recommendations. The Commission 3. Pursuant to 39 U.S.C. 505, Richard principal office of the Exchange, and at invites comments and recommendations A. Oliver is appointed to serve as an the Commission’s Public Reference regarding the USO and the postal officer of the Commission to represent Room. monopoly. the interests of the general public in this proceeding (Public Representative). II. Self-Regulatory Organization’s L. Requirement of a Public Statement of the Purpose of, and Representative 4. The Secretary shall arrange for Statutory Basis for, the Proposed Rule publication of this order in the Federal Change The Commission must designate a Register. public representative in all proceedings In its filing with the Commission, the By the Commission. on a case-by-case basis. See 39 U.S.C. Exchange included statements Stacy L. Ruble, concerning the purpose of and basis for 505; 39 CFR 3002.14. The public representative serves the interest of the Secretary. the proposed rule change and discussed general public in these proceedings, and [FR Doc. 2016–09038 Filed 4–18–16; 8:45 am] any comments it received on the is subject to ex parte communication BILLING CODE 7710–FW–P proposed rule change. The text of these restrictions with the Commission for statements may be examined at the those proceedings. The Commission places specified in Item IV below. The welcomes comments on the utility of Exchange has prepared summaries, set the public representative in Commission SECURITIES AND EXCHANGE forth in Sections A, B, and C below, of proceedings, and any improvements the COMMISSION the most significant parts of such Commission should consider to improve statements. the public representative program. [Release No. 34–77600; File No. SR– (A) Self-Regulatory Organization’s M. Requirement of Commission BatsBYX–2016–04] Statement of the Purpose of, and Inspector General Statutory Basis for, the Proposed Rule Self-Regulatory Organizations; Bats Change The Commission’s Office of the BYX Exchange, Inc.; Notice of Filing 1. Purpose Inspector General has duties related to and Immediate Effectiveness of a the oversight of Commission programs Proposed Rule Change To Amend the On December 16, 2015, the and operations. See 39 CFR 3002.16. Certificate of Incorporation of the Corporation, the ultimate parent entity The Inspector General reports to Exchange’s Ultimate Parent Company, of the Exchange, filed a registration Congress and the Commission on a bi- Bats Global Markets, Inc. statement on Form S–1 with the annual basis its activities related to Commission seeking to register shares of audits, inspections, and other April 13, 2016. common stock and to conduct an initial evaluations.25 The Commission Pursuant to Section 19(b)(1) of the public offering of those shares, which welcomes comment on the Office of the Securities Exchange Act of 1934 (the will be listed for trading on the Inspector General, and any perspectives ‘‘Act’’),1 and Rule 19b–4 thereunder,2 Exchange (the ‘‘IPO’’). In connection on the cost benefit or effectiveness of notice is hereby given that on April 8, with its IPO, the Corporation intends to the office. amend and restate its certificate of 2016, Bats BYX Exchange, Inc. (the incorporation (the ‘‘New Certificate of IV. Conclusion ‘‘Exchange’’ or ‘‘BYX’’) filed with the Incorporation’’). The Exchange Securities and Exchange Commission previously received Commission The Commission invites public (‘‘Commission’’) the proposed rule approval of certain substantive comment on the issues noted above, and change as described in Items I and II amendments to the certificate of on any other issues of interest related to below, which Items have been prepared incorporation of the Corporation that the operation of the amendments of the by the Exchange. The Exchange has comprise changes included in the New PAEA. Comments shall be submitted no designated this proposal as a ‘‘non- Certificate of Incorporation.5 Since that later than June 14, 2016. controversial’’ proposed rule change date, the Corporation has determined it The Commission appoints Richard A. pursuant to Section 19(b)(3)(A) of the to be necessary to further amend its Oliver to serve as Public Representative Act 3 and Rule 19b–4(f)(6)(iii) certificate of incorporation to achieve in this docket. thereunder,4 which renders it effective the final, pre-IPO version of the New upon filing with the Commission. The Certificate of Incorporation. The mstockstill on DSK4VPTVN1PROD with NOTICES 24 Postal Regulatory Commission, Report of Commission is publishing this notice to additional amendments will be Universal Postal Service and the Postal Monopoly, solicit comments on the proposed rule achieved through the filing with the December 19, 2008 (USO Report) (available at change from interested persons. State of Delaware of a certificate of http://www.prc.gov/prc-reports). 25 See Postal Regulatory Commission Office of 1 15 U.S.C. 78s(b)(1). Inspector General, Semiannual Report to Congress, 5 See Securities Exchange Act Release No. 77464 2 17 CFR 240.19b–4. April 1, 2015 through September 30, 2015 (March 29, 2016), 81 FR 19252 (April 1, 2016) (SR– 3 15 U.S.C. 78s(b)(3)(A). (available at http://www.prc.gov/sites/default/files/ BATS–2016–010; SR–BYX–2016–02; SR–EDGX– oig-reports/SARC2015-2.pdf). 4 17 CFR 240.19b–4(f)(6)(iii). 2016–04; SR–EDGA–2016–01). VerDate Sep<11>2014 18:02 Apr 18, 2016 Jkt 238001 PO 00000 Frm 00058 Fmt 4703 Sfmt 4703 E:\FR\FM\19APN1.SGM 19APN1

23022 Federal Register / Vol. 81, No. 75 / Tuesday, April 19, 2016 / Notices amendment to the New Certificate of regulatory obligations under the Act. 30 days after the date of filing. However, Incorporation. The additional Under the proposal, the Corporation is Rule 19b–4(f)(6)(iii) 13 permits the amendments are described in further making certain administrative and Commission to designate a shorter time detail below. structural changes to the New Certificate if such action is consistent with the The Exchange, on behalf of the of Incorporation. These changes, protection of investors and the public Corporation, proposes changes to the however, do not impact the governance interest. The Exchange has asked the New Certificate of Incorporation in of the Exchange nor do they modify the Commission to waive the 30-day connection with a forward stock split, ownership of the Corporation. operative delay so that the proposal may pursuant to which each share of become operative immediately upon common stock of the Corporation (B) Self-Regulatory Organization’s filing. The Exchange states that the outstanding or held in treasury Statement on Burden on Competition Corporation’s IPO may occur in the near immediately prior to the completion of The Exchange does not believe that future, and the changes described in this the IPO would automatically and the proposed rule change imposes any notice are a critical component of such without action on the part of the holders burden on competition. As described IPO. The Exchange states that waiver of thereof be subdivided into 2.91 shares of above, the proposed rule change is the operative delay will allow the common stock (the ‘‘Stock Split’’).6 simply to make certain administrative Corporation to promptly move forward Accordingly, the number of authorized and structural changes to the New with the IPO without delay. The shares of the Corporation, both in the Certificate of Incorporation. These Commission notes that the Exchange aggregate and as set forth by class, as changes do not impact the governance represents that there are no changes to codified in paragraph (a)(i) of Article of the Exchange nor do they modify the the provisions of the New Certificate of Fourth of the New Certificate of ownership of the Corporation. Incorporation that impact the ownership Incorporation, will be adjusted. The (C) Self-Regulatory Organization’s or governance of the Exchange, and that Corporation also plans to adjust the Statement on Comments on the instead, the amendments reflect preferred stock of the Corporation Proposed Rule Change Received From administrative and structural consistent with the Stock Split. The par Members, Participants or Others amendments to the New Certificate of value of the Corporation’s common Incorporation. Based on the foregoing, stock will remain $0.01 per share. The Exchange has not solicited, and the Commission believes that waiving The purpose of this rule filing is to does not intend to solicit, comments on the 30-day operative delay is consistent permit the Corporation, the ultimate this proposed rule change. The with the protection of investors and the parent company of the Exchange, to Exchange has not received any written public interest.14 The Commission adopt an amendment to the New comments from members or other hereby grants the Exchange’s request Certificate of Incorporation, as described interested parties. and designates the proposal operative in this proposal. The changes described III. Date of Effectiveness of the upon filing. herein relate to the certificate of Proposed Rule Change and Timing for At any time within 60 days of the incorporation of the Corporation only, Commission Action filing of the proposed rule change, the not to the governance of the Exchange. Commission summarily may The Exchange will continue to be The Exchange has filed the proposed temporarily suspend such rule change if governed by its existing certificate of rule change pursuant to Section it appears to the Commission that such incorporation and bylaws. The stock in, 19(b)(3)(A)(iii) of the Act 8 and Rule action is necessary or appropriate in the and voting power of, the Exchange will 19b–4(f)(6) thereunder.9 Because the public interest, for the protection of continue to be directly and solely held proposed rule change does not: (i) investors, or otherwise in furtherance of by Bats Global Markets Holdings, Inc., Significantly affect the protection of the purposes of the Act. If the an intermediate holding company investors or the public interest; (ii) Commission takes such action, the wholly-owned by the Corporation, and impose any significant burden on Commission shall institute proceedings the governance of the Exchange will competition; and (iii) become operative to determine whether the proposed rule continue under its existing structure. for 30 days from the date on which it should be approved or disapproved. was filed, or such shorter time as the 2. Statutory Basis Commission may designate, if IV. Solicitation of Comments The Exchange believes that its consistent with the protection of Interested persons are invited to proposal is consistent with the investors and the public interest, the submit written data, views, and requirements of the Act and rules and proposed rule change has become arguments concerning the foregoing, regulations thereunder that are effective pursuant to Section 19(b)(3)(A) including whether the proposed rule applicable to a national securities of the Act 10 and Rule 19b–4(f)(6) change is consistent with the Act. exchange, and, in particular, with the thereunder.11 Comments may be submitted by any of requirements of Section 6(b) of the Act.7 A proposed rule change filed under the following methods: In particular, the proposal is consistent Rule 19b–4(f)(6) under the Act 12 normally does not become operative for Electronic Comments with Section 6(b)(1) of the Act, because it retains, without modification, the • Use the Commission’s Internet existing limitations on ownership and 8 15 U.S.C. 78s(b)(3)(A)(iii). comment form (http://www.sec.gov/ total voting power that currently exist 9 17 CFR 240.19b–4(f)(6). rules/sro.shtml); or and that are designed to prevent any 10 15 U.S.C. 78s(b)(3)(A). • Send an email to rule-comments@ 11 In addition, Rule 19b–4(f)(6)(iii) requires the mstockstill on DSK4VPTVN1PROD with NOTICES stockholder from exercising undue sec.gov. Please include File Number SR– Exchange to give the Commission written notice of control over the operation of the the Exchange’s intent to file the proposed rule BatsBYX–2016–04 on the subject line. Exchange and to assure that the change, along with a brief description and text of the proposed rule change, at least five business days 13 17 CFR 240.19b–4(f)(6)(iii). Exchange is able to carry out its prior to the date of filing of the proposed rule 14 For purposes only of waiving the 30-day change, or such shorter time as designated by the operative delay, the Commission has also 6 Common stock consists of voting common stock Commission. The Exchange has satisfied this considered the proposed rule’s impact on and non-voting common stock of the Corporation. requirement. efficiency, competition, and capital formation. See 7 15 U.S.C. 78f(b). 12 17 CFR 240.19b–4(f)(6). 15 U.S.C. 78c(f). VerDate Sep<11>2014 18:02 Apr 18, 2016 Jkt 238001 PO 00000 Frm 00059 Fmt 4703 Sfmt 4703 E:\FR\FM\19APN1.SGM 19APN1

Federal Register / Vol. 81, No. 75 / Tuesday, April 19, 2016 / Notices 23023 Paper Comments SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s COMMISSION Statement of the Purpose of, and • Send paper comments in triplicate Statutory Basis for, the Proposed Rule to Secretary, Securities and Exchange [Release No. 34–77613; File No. SR–Phlx– Change Commission, 100 F Street NE., 2016–45] Washington, DC 20549–1090. 1. Purpose Self-Regulatory Organizations; The purpose of the proposal is to All submissions should refer to File NASDAQ PHLX LLC; Notice of Filing modify Chapter VII, Section B of the Number SR–BatsBYX–2016–04. This and Immediate Effectiveness of Exchange’s Pricing Schedule separately file number should be included on the Proposed Rule Change to Proposed to identify SQF Purge Ports and to set subject line if email is used. To help the Rule Change To Modify Chapter VII the fees applicable to SQF Purge Ports. Commission process and review your Section B of the Exchange’s Pricing Active SQF Ports today allow purging, comments more efficiently, please use Schedule however the Exchange does not only one method. The Commission will separately identify such ports or assess post all comments on the Commission’s April 13, 2016. a fee for SQF Purge Ports. Internet Web site (http://www.sec.gov/ Pursuant to Section 19(b)(1) of the The SQF Port (known as ‘‘Active SQF rules/sro.shtml). Copies of the Securities Exchange Act of 1934 Port’’) 3 is an interface that enables submission, all subsequent (‘‘Act’’),1 and Rule 19b–4 thereunder,2 Specialists,4 Streaming Quote Traders amendments, all written statements notice is hereby given that on April 1, (‘‘SQTs’’) 5 and Remote Streaming Quote with respect to the proposed rule 2016, NASDAQ PHLX LLC (‘‘Phlx’’ or Traders (‘‘RSQTs’’) 6 (together known as ‘‘Exchange’’) filed with the Securities ‘‘Market Makers’’) to connect and send change that are filed with the and Exchange Commission (‘‘SEC’’ or quotes into the Exchange’s trading Commission, and all written ‘‘Commission’’) the proposed rule system and receive certain information.7 communications relating to the change as described in Items I, II, and Market Makers rely on data available proposed rule change between the III, below, which Items have been through Active SQF Ports to provide Commission and any person, other than prepared by the Exchange. The them the necessary information for risk those that may be withheld from the Commission is publishing this notice to control and risk management so that public in accordance with the solicit comments on the proposed rule they can perform market making provisions of 5 U.S.C. 552, will be change from interested persons. activities in a swift and meaningful way. available for Web site viewing and Active SQF Ports allow Market Makers printing in the Commission’s Public I. Self-Regulatory Organization’s Statement of the Terms of Substance of to access information such as execution Reference Room, 100 F Street NE., reports, execution report messages, Washington, DC 20549, on official the Proposed Rule Change auction notifications, and business days between the hours of The Exchange proposes to modify administrative data through a single 10:00 a.m. and 3:00 p.m. Copies of the Section B of the NASDAQ PHLX LLC feed. Other data that is available filing also will be available for Pricing Schedule (‘‘Pricing Schedule’’) includes: (1) Options Auction inspection and copying at the principal in Chapter VII separately to identify Notifications (e.g., opening imbalance, office of the Exchange. All comments streaming quote interface (‘‘SQF’’) Purge market exhaust, PIXL or other received will be posted without change; Ports and to set the fees applicable to information); (2) Options Symbol the Commission does not edit personal SQF Purge Ports. The Exchange also is Directory Messages; (3) System Event identifying information from making technical, non-substantive Messages (e.g., start of messages, start of submissions. You should submit only modifications to the certain existing system hours, start of quoting, start of information that you wish to make provisions in Chapter VII, Section B. opening); (4) Complex Order Strategy The text of the proposed rule change Auction Notifications (COLA); (5) available publicly. All submissions is available on the Exchange’s Web site Complex Order Strategy messages; (6) should refer to File Number SR– at http://nasdaqomxphlx Option Trading Action Messages (e.g., BatsBYX–2016–04 and should be .cchwallstreet.com/, at the principal submitted on or before May 10, 2016. office of the Exchange, and at the 3 Current SQF Ports are known as ‘‘Active SQF For the Commission, by the Division of Commission’s Public Reference Room. Ports’’ in the Pricing Schedule to signify that such ports are fee liable when they receive inbound Trading and Markets, pursuant to delegated quotes at any time within that month ($1,250 per authority.15 II. Self-Regulatory Organization’s port per month up to a maximum of $42,000 per Statement of the Purpose of, and month). Robert W. Errett, Statutory Basis for, the Proposed Rule 4 A Specialist is an Exchange member who is Deputy Secretary. Change registered as an options specialist. See Phlx Rule [FR Doc. 2016–08938 Filed 4–18–16; 8:45 am] 1020(a). In its filing with the Commission, the 5 An SQT is defined in Exchange Rule BILLING CODE 8011–01–P Exchange included statements 1014(b)(ii)(A) as a Registered Options Trader concerning the purpose of and basis for (‘‘ROT’’) who has received permission from the the proposed rule change and discussed Exchange to generate and submit option quotations electronically in options to which such SQT is any comments it received on the assigned. proposed rule change. The text of these 6 An RSQT is defined in Exchange Rule in statements may be examined at the 1014(b)(ii)(B) as an ROT that is a member or member organization with no physical trading floor mstockstill on DSK4VPTVN1PROD with NOTICES places specified in Item IV below. The presence who has received permission from the Exchange has prepared summaries, set Exchange to generate and submit option quotations forth in sections A, B, and C below, of electronically in options to which such RSQT has the most significant aspects of such been assigned. An RSQT may only submit such statements. quotations electronically from off the floor of the Exchange. 7 See Securities Exchange Act Release No. 63034 1 15 U.S.C. 78s(b)(1). (October 4, 2010), 75 FR 62441 (October 8, 2010) 15 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4. (SR–Phlx–2010–124). VerDate Sep<11>2014 18:02 Apr 18, 2016 Jkt 238001 PO 00000 Frm 00060 Fmt 4703 Sfmt 4703 E:\FR\FM\19APN1.SGM 19APN1


Document Created: 2016-04-19 00:15:53
Document Modified: 2016-04-19 00:15:53
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 23021 
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