81 FR 23768 - Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 14.3 Regarding the Requirements for the Listing of Securities That Are Issued by the Exchange or Any of Its Affiliates
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 78 (April 22, 2016)
Federal Register Volume 81, Issue 78 (April 22, 2016)
| Page Range | 23768-23770 | |
| FR Document | 2016-09320 |
[Federal Register Volume 81, Number 78 (Friday, April 22, 2016)] [Notices] [Pages 23768-23770] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-09320] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77639; File No. SR-BatsBZX-2016-08] Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 14.3 Regarding the Requirements for the Listing of Securities That Are Issued by the Exchange or Any of Its Affiliates April 18, 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 13, 2016, Bats BZX Exchange, Inc. (the ``Exchange'' or ``BZX'') 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. --------------------------------------------------------------------------- \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). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange is proposing a rule change to make a series of changes to paragraph (e) of Exchange Rule 14.3 regarding the requirements for the listing of securities that are issued by the Exchange or any of its affiliates. 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 is proposing to make a series of changes to paragraph (e) of Exchange Rule 14.3 regarding the reporting requirements on the Exchange should the Exchange or BZX Affiliate \5\ list a security on the Exchange (the ``Affiliate Security''). These changes are: (i) Expanding the definition of Affiliate Security under Exchange Rule 14.3(e)(1)(B); (ii) specifying that the Exchange shall also prepare a report describing the Exchange's monitoring of the trading of an Affiliate Security; and (iii) making a series of organizational changes. --------------------------------------------------------------------------- \5\ Exchange Rule 14.3(e)(1)(A) defines ``BZX Affiliate'' as ``the Exchange and any entity that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with the Exchange, where ``control'' means that one entity possesses, directly or indirectly, voting control of the other entity either through ownership of capital stock or other equity securities or through majority representation on the board of directors or other management body of such entity.'' The Exchange does not propose to amend the definition of BZX Affiliate. --------------------------------------------------------------------------- Exchange Rule 14.3(e)(1)(B) currently defines Affiliate Security as ``any security issued by a BZX Affiliate, with the exception of Portfolio Depository Receipts as defined in Rule 14.11(b) and Index Fund Shares as defined in Rule 14.11(c).'' The Exchange proposes to expand the definition of Affiliate Security to include any Exchange- listed option on any security issued by a BZX Affiliate. In the event that a BZX Affiliate seeks to list an Affiliate Security, paragraph (e)(2) of Rule 14.3 requires that prior to the initial listing of the Affiliate Security on the Exchange, Exchange personnel shall determine that such security satisfies the Exchange's rules for listing, and such finding must be approved by the Regulatory Oversight Committee of the Exchange's Board of Directors. The Exchange proposes to renumber this paragraph as (e)(2)(A) and rename paragraph (2) as ``Affiliate Securities Listed on the Exchange.'' The Exchange does not propose any [[Page 23769]] additional changes to this section of Rule 14.3. Current Rule 14.3(e)(3) states that throughout the continued listing of the Affiliate Security on the Exchange, the Exchange will prepare a quarterly report for the Regulatory Oversight Committee of the Exchange's Board of Directors. Current sub-paragraph (i) of the Rule 14.3(e)(3) requires that the report describe the Exchange's monitoring of the Affiliate Security's compliance with the Exchange's listing standards, including, as described in current sub-paragraph (i)(a), the Affiliate Security's compliance with the Exchange's minimum share price requirement, and, as described under current sub-paragraph (i)(b) the Affiliate Security's compliance with each of the quantitative continued listing requirements. The Exchange proposes to renumber paragraph (3)(A) of Rule 14.3(e) as paragraph as (2)(B) and reformat this section of the rule as follows. Paragraph (2)(B) would state that throughout the continued listing of the Affiliate Security on the Exchange, the Exchange will prepare a quarterly report for the Regulatory Oversight Committee of the Exchange's Board of Directors describing the Exchange's monitoring of the Affiliate Security's compliance with the Exchange's listing standards. Paragraph (2)(B)(i) would require that the report include a description of the Affiliate Security's compliance with the Exchange's minimum share price requirement and paragraph (2)(B)(ii) would require that the report include a description of the Affiliate Security's compliance with each of the quantitative continued listing requirements. The Exchange does not propose any substantive changes to this section of the rule. Current sub-paragraph (ii) of Rule 14.3(e)(3)(A) states that the report shall also describe the Exchange's monitoring of the trading of the Affiliate Security, including summaries of all related surveillance alerts, complaints, regulatory referrals, trades cancelled or adjusted pursuant to Rule 11.17, investigations, examinations, formal and informal disciplinary actions, exception reports and trading data used to ensure the Affiliate Security's compliance with the Exchange's listing and trading rules. The Exchange proposes to relocate current sub-paragraph (3)(A)(ii) under new sub-paragraph (3) to Rule 14.3(e). The Exchange proposes to include additional language specifying that the Exchange shall prepare a quarterly report on the Affiliate Security for the Regulatory Oversight Committee of the Exchange's Board of Directors that describes the activity described in the sub-paragraph. The Exchange proposes to include additional language that these requirements will be applicable throughout the trading of the Affiliate Security on the Exchange. Current sub-paragraph (3)(B) of Rule 14.3(e) also states that to the extent the Exchange uses Exchange staff to conduct surveillance of trading activity on the Exchange, the Exchange is required to engage an independent third party once a year to review and prepare a report regarding surveillance of the Affiliate Security and promptly forward to the Regulatory Oversight Committee of the Exchange's Board of Directors and the Commission a copy of the report prepared by the independent third party. The Exchange proposes to eliminate the requirements of current sub-paragraph (3)(B) based on the fact that this requirement is not applicable on other national securities exchanges with similar rules regarding the listing or trading of an affiliate security.\6\ The Exchange does not propose any additional substantive changes to these sections of the rule. --------------------------------------------------------------------------- \6\ See, e.g., NYSE Rule 497; Nasdaq Rule 4370. --------------------------------------------------------------------------- Current Rule 14.3(e)(3)(A) also requires that the Exchange to promptly furnish a copy of the quarterly report required by current paragraph (e)(3)(A) to the Commission. The Exchange proposes to renumber this paragraph as (e)(4) and revise it to state that a copy of the reports required by proposed renumbered sub-paragraphs (2) and (3) of Rule 14.3(e), discussed above, will be forwarded promptly to the Commission. Current sub-paragraph (C) of Rule 14.3(e)(3) requires the Exchange to commission an annual review and report by an independent accounting firm of the compliance of the Affiliate Security with the Exchange's listing requirements. The Exchange is required to promptly furnish a copy of this annual report to the Regulatory Oversight Committee of the Exchange's Board of Directors and the Commission. The Exchange proposes to renumber this paragraph as (2)(C) of Rule 14.3(e) to conform with the reformatting of Rule 14.3(e) proposed above. The Exchange also proposes to delete the requirement that the report also be sent to the Commission as this requirement is proposed to be included in proposed paragraph (e)(4) discussed below. The Exchange does not propose any substantive changes to this section of the rule. Lastly, current Rule 14.3(e)(4) states that in the event the Exchange determines that the BZX Affiliate is not in compliance with any of the Exchange's listing standards, the Exchange is required to notify the issuer of such non-compliance promptly and request a plan of compliance. The Exchange is also required to file a report with the Commission within five business days of providing such notice to the issuer of its non-compliance. The required report identifies the date of the non-compliance, type of non-compliance, and any other material information conveyed to the issuer in the notice of non-compliance. Within five business days of receipt of a plan of compliance from the issuer, the Exchange is again required to notify the Commission of such receipt, whether the plan of compliance was accepted by the Exchange or what other action was taken with respect to the plan and the time period provided to regain compliance with the Exchange's listing standards, if any. The Exchange proposes to renumber this section of the rule as (2)(D) of Rule 14.3(e) to conform with the reformatting of Rule 14.3(e) proposed above. The Exchange does not propose any substantive changes to this section of the rule. 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.\7\ Specifically, the proposed change is consistent with Section 6(b)(5) of the Act,\8\ 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, and to remove impediments to, and perfect the mechanism of, a free and open market and a national market system. Specifically, the Exchange believes that the proposed rule change, by requiring heightened reporting by the Exchange to the Commission with respect to oversight of the listing and trading on the Exchange of Affiliate Securities, will continue to help protect against concerns that the Exchange will not effectively enforce its rules with respect to the listing and trading of these securities. The Exchange believes that the proposed amendments to Rule 14.3(e) would continue to eliminate any perception of a potential conflict of interest if a BZX Affiliate seeks to list a security on the Exchange. The Exchange notes that the elimination of current [[Page 23770]] sub-paragraph (3)(B) does not present any risk to investors or the public interest, as the Exchange is retaining the requirement to furnish quarterly reports to both the Regulatory Oversight Committee of the Exchange's Board and to the Commission. The Exchange also notes that other national securities exchanges with similar rules do not have such a provision.\9\ Lastly, the Exchange believes that the reorganization of, and the additional specificity proposed to be included in Rule 14.3(e) promotes just and equitable principles of trade and remove impediments to a free and open market by providing greater transparency concerning the controls in place to address the potential conflicts of interest that may arise in the listing or trading of Affiliate Securities on the Exchange. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78f(b). \8\ 15 U.S.C. 78f(b)(5). \9\ See supra, note 6. --------------------------------------------------------------------------- (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 proposed rule change is not designed to address any competitive issues, but rather provide additional specificity and transparency to Members, Users, and the investing public regarding the Exchange's controls that are in place to address the potential conflicts of interest that may arise in the listing of Affiliate Securities on the Exchange. (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 The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act \10\ and Rule 19b-4(f)(6) thereunder.\11\ 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 \12\ and Rule 19b- 4(f)(6) thereunder.\13\ --------------------------------------------------------------------------- \10\ 15 U.S.C. 78s(b)(3)(A)(iii). \11\ 17 CFR 240.19b-4(f)(6). \12\ 15 U.S.C. 78s(b)(3)(A). \13\ 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. --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) under the Act \14\ normally does not become operative for 30 days after the date of filing. However, Rule 19b-4(f)(6)(iii) \15\ 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 waiver of the operative delay will allow the Exchange to implement the proposed rule change immediately in the event an Affiliate seeks to list on the Exchange or the Exchange seeks to trade an Affiliate Security on the Exchange. The Exchange further states that the proposal will provide greater transparency concerning the controls in place to address the potential conflicts of interest that may arise in the listing of Affiliate Securities on the Exchange. 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.\16\ The Commission hereby grants the Exchange's request and designates the proposal operative upon filing. --------------------------------------------------------------------------- \14\ 17 CFR 240.19b-4(f)(6). \15\ 17 CFR 240.19b-4(f)(6)(iii). \16\ 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). --------------------------------------------------------------------------- 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 CommentsUse 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-BatsBZX-2016-08 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-BatsBZX-2016-08. 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-BatsBZX-2016-08 and should be submitted on or before May 13, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\17\ --------------------------------------------------------------------------- \17\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-09320 Filed 4-21-16; 8:45 am] BILLING CODE 8011-01-P
![23768 Federal Register / Vol. 81, No. 78 / Friday, April 22, 2016 / Notices
holidays) prior to its use.1 Commission Dated: April 19, 2016. concerning the purpose of and basis for
staff reviews sales material filed under Robert W. Errett, the proposed rule change and discussed
rule 607 for materially misleading Deputy Secretary. any comments it received on the
statements and omissions. The [FR Doc. 2016–09361 Filed 4–21–16; 8:45 am] proposed rule change. The text of these
requirements of rule 607 are designed to BILLING CODE 8011–01–P
statements may be examined at the
protect investors from the use of false or places specified in Item IV below. The
misleading sales material in connection Exchange has prepared summaries, set
with Regulation E offerings. SECURITIES AND EXCHANGE forth in Sections A, B, and C below, of
COMMISSION the most significant parts of such
Respondents to this collection of statements.
information include SBICs and BDCs [Release No. 34–77639; File No. SR–
making an offering of securities under BatsBZX–2016–08] (A) Self-Regulatory Organization’s
Regulation E. Each respondent’s Statement of the Purpose of, and
Self-Regulatory Organizations; Bats Statutory Basis for, the Proposed Rule
reporting burden under rule 607 relates
BZX Exchange, Inc.; Notice of Filing Change
to the burden associated with filing its
and Immediate Effectiveness of a
sales material electronically. The Proposed Rule Change to Rule 14.3 1. Purpose
burden of filing electronically, however, Regarding the Requirements for the The Exchange is proposing to make a
is negligible and there have been no Listing of Securities That Are Issued series of changes to paragraph (e) of
filings made under this rule, so this by the Exchange or Any of Its Affiliates Exchange Rule 14.3 regarding the
collection of information does not reporting requirements on the Exchange
impose any burden on the industry. April 18, 2016.
should the Exchange or BZX Affiliate 5
However, we are requesting one annual Pursuant to Section 19(b)(1) of the
list a security on the Exchange (the
response and an annual burden of one Securities Exchange Act of 1934 (the
‘‘Affiliate Security’’). These changes are:
hour for administrative purposes. The ‘‘Act’’),1 and Rule 19b–4 thereunder,2
(i) Expanding the definition of Affiliate
estimate of average burden hours is notice is hereby given that on April 13,
Security under Exchange Rule
made solely for purposes of the 2016, Bats BZX Exchange, Inc. (the
14.3(e)(1)(B); (ii) specifying that the
Paperwork Reduction Act and is not ‘‘Exchange’’ or ‘‘BZX’’) filed with the
Exchange shall also prepare a report
derived from a quantitative, Securities and Exchange Commission
describing the Exchange’s monitoring of
(‘‘Commission’’) the proposed rule
comprehensive, or even representative the trading of an Affiliate Security; and
change as described in Items I and II
survey or study of the burdens (iii) making a series of organizational
below, which Items have been prepared
associated with Commission rules and changes.
by the Exchange. The Exchange has
forms. Exchange Rule 14.3(e)(1)(B) currently
designated this proposal as a ‘‘non-
The requirements of this collection of defines Affiliate Security as ‘‘any
controversial’’ proposed rule change
security issued by a BZX Affiliate, with
information are mandatory. Responses pursuant to Section 19(b)(3)(A) of the
the exception of Portfolio Depository
will not be kept confidential. An agency Act 3 and Rule 19b–4(f)(6)(iii)
Receipts as defined in Rule 14.11(b) and
may not conduct or sponsor, and a thereunder,4 which renders it effective
Index Fund Shares as defined in Rule
person is not required to respond to a upon filing with the Commission. The
14.11(c).’’ The Exchange proposes to
collection of information unless it Commission is publishing this notice to
expand the definition of Affiliate
displays a currently valid control solicit comments on the proposed rule
Security to include any Exchange-listed
number. change from interested persons.
option on any security issued by a BZX
The public may view the background I. Self-Regulatory Organization’s Affiliate.
documentation for this information Statement of the Terms of Substance of In the event that a BZX Affiliate seeks
collection at the following Web site, the Proposed Rule Change to list an Affiliate Security, paragraph
www.reginfo.gov. Comments should be The Exchange is proposing a rule (e)(2) of Rule 14.3 requires that prior to
directed to: (i) Desk Officer for the change to make a series of changes to the initial listing of the Affiliate
Securities and Exchange Commission, paragraph (e) of Exchange Rule 14.3 Security on the Exchange, Exchange
Office of Information and Regulatory regarding the requirements for the personnel shall determine that such
Affairs, Office of Management and listing of securities that are issued by security satisfies the Exchange’s rules
Budget, Room 10102, New Executive the Exchange or any of its affiliates. for listing, and such finding must be
Office Building, Washington, DC 20503, The text of the proposed rule change approved by the Regulatory Oversight
or by sending an email to: Shagufta_ is available at the Exchange’s Web site Committee of the Exchange’s Board of
at www.batstrading.com, at the Directors. The Exchange proposes to
Ahmed@omb.eop.gov; and (ii) Pamela
principal office of the Exchange, and at renumber this paragraph as (e)(2)(A) and
Dyson, Director/Chief Information
the Commission’s Public Reference rename paragraph (2) as ‘‘Affiliate
Officer, Securities and Exchange
Room. Securities Listed on the Exchange.’’ The
Commission, c/o Remi Pavlik-Simon, Exchange does not propose any
100 F Street NE., Washington, DC 20549 II. Self-Regulatory Organization’s
or send an email to: PRA_Mailbox@ Statement of the Purpose of, and 5 Exchange Rule 14.3(e)(1)(A) defines ‘‘BZX
sec.gov. Comments must be submitted to Statutory Basis for, the Proposed Rule Affiliate’’ as ‘‘the Exchange and any entity that
OMB within 30 days of this notice. directly or indirectly, through one or more
mstockstill on DSK4VPTVN1PROD with NOTICES
Change
intermediaries, controls, is controlled by, or is
In its filing with the Commission, the under common control with the Exchange, where
1 Sales material includes advertisements, articles
Exchange included statements ‘‘control’’ means that one entity possesses, directly
or other communications to be published in or indirectly, voting control of the other entity
newspapers, magazines, or other periodicals; radio either through ownership of capital stock or other
1 15 U.S.C. 78s(b)(1).
and television scripts; and letters, circulars or other equity securities or through majority representation
2 17 CFR 240.19b–4.
written communications proposed to be sent given on the board of directors or other management body
3 15 U.S.C. 78s(b)(3)(A).
or otherwise communicated to more than ten of such entity.’’ The Exchange does not propose to
persons. 4 17 CFR 240.19b–4(f)(6)(iii). amend the definition of BZX Affiliate.
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![23770 Federal Register / Vol. 81, No. 78 / Friday, April 22, 2016 / Notices
sub-paragraph (3)(B) does not present effective pursuant to Section 19(b)(3)(A) change is consistent with the Act.
any risk to investors or the public of the Act 12 and Rule 19b–4(f)(6) Comments may be submitted by any of
interest, as the Exchange is retaining the thereunder.13 the following methods:
requirement to furnish quarterly reports A proposed rule change filed under
to both the Regulatory Oversight Rule 19b–4(f)(6) under the Act 14 Electronic Comments
Committee of the Exchange’s Board and normally does not become operative for
• Use the Commission’s Internet
to the Commission. The Exchange also 30 days after the date of filing. However,
comment form (http://www.sec.gov/
notes that other national securities Rule 19b–4(f)(6)(iii) 15 permits the
rules/sro.shtml); or
exchanges with similar rules do not Commission to designate a shorter time
have such a provision.9 Lastly, the if such action is consistent with the • Send an email to rule-comments@
Exchange believes that the protection of investors and the public sec.gov. Please include File Number SR–
reorganization of, and the additional interest. The Exchange has asked the BatsBZX–2016–08 on the subject line.
specificity proposed to be included in Commission to waive the 30-day
Paper Comments
Rule 14.3(e) promotes just and equitable operative delay so that the proposal may
principles of trade and remove become operative immediately upon • Send paper comments in triplicate
impediments to a free and open market filing. The Exchange states that waiver to Secretary, Securities and Exchange
by providing greater transparency of the operative delay will allow the Commission, 100 F Street NE.,
concerning the controls in place to Exchange to implement the proposed Washington, DC 20549–1090.
address the potential conflicts of rule change immediately in the event an
interest that may arise in the listing or Affiliate seeks to list on the Exchange or All submissions should refer to File
trading of Affiliate Securities on the the Exchange seeks to trade an Affiliate Number SR–BatsBZX–2016–08. This file
Exchange. Security on the Exchange. The Exchange number should be included on the
further states that the proposal will subject line if email is used. To help the
(B) Self-Regulatory Organization’s provide greater transparency concerning Commission process and review your
Statement on Burden on Competition the controls in place to address the comments more efficiently, please use
The Exchange does not believe that potential conflicts of interest that may only one method. The Commission will
the proposed rule change will impose arise in the listing of Affiliate Securities post all comments on the Commission’s
any burden on competition that is not on the Exchange. Based on the Internet Web site (http://www.sec.gov/
necessary or appropriate in furtherance foregoing, the Commission believes that rules/sro.shtml). Copies of the
of the purposes of the Act. The waiving the 30-day operative delay is submission, all subsequent
proposed rule change is not designed to consistent with the protection of amendments, all written statements
address any competitive issues, but investors and the public interest.16 The with respect to the proposed rule
rather provide additional specificity and Commission hereby grants the change that are filed with the
transparency to Members, Users, and Exchange’s request and designates the Commission, and all written
the investing public regarding the proposal operative upon filing. communications relating to the
Exchange’s controls that are in place to At any time within 60 days of the proposed rule change between the
address the potential conflicts of filing of the proposed rule change, the Commission and any person, other than
interest that may arise in the listing of Commission summarily may those that may be withheld from the
Affiliate Securities on the Exchange. temporarily suspend such rule change if public in accordance with the
it appears to the Commission that such
(C) Self-Regulatory Organization’s provisions of 5 U.S.C. 552, will be
action is necessary or appropriate in the
Statement on Comments on the available for Web site viewing and
public interest, for the protection of
Proposed Rule Change Received From printing in the Commission’s Public
investors, or otherwise in furtherance of
Members, Participants or Others Reference Room, 100 F Street NE.,
the purposes of the Act. If the
Commission takes such action, the Washington, DC 20549, on official
Written comments were neither business days between the hours of
solicited nor received. Commission shall institute proceedings
to determine whether the proposed rule 10:00 a.m. and 3:00 p.m. Copies of the
III. Date of Effectiveness of the should be approved or disapproved. filing also will be available for
Proposed Rule Change and Timing for inspection and copying at the principal
Commission Action IV. Solicitation of Comments office of the Exchange. All comments
The Exchange has filed the proposed Interested persons are invited to received will be posted without change;
rule change pursuant to Section submit written data, views, and the Commission does not edit personal
19(b)(3)(A)(iii) of the Act 10 and Rule arguments concerning the foregoing, identifying information from
19b–4(f)(6) thereunder.11 Because the including whether the proposed rule submissions. You should submit only
proposed rule change does not: (i) information that you wish to make
Significantly affect the protection of
12 15 U.S.C. 78s(b)(3)(A). available publicly. All submissions
investors or the public interest; (ii)
13 In addition, Rule 19b–4(f)(6)(iii) requires the should refer to File Number SR–
Exchange to give the Commission written notice of BatsBZX–2016–08 and should be
impose any significant burden on the Exchange’s intent to file the proposed rule
competition; and (iii) become operative change, along with a brief description and text of submitted on or before May 13, 2016.
for 30 days from the date on which it the proposed rule change, at least five business days For the Commission, by the Division of
prior to the date of filing of the proposed rule
was filed, or such shorter time as the change, or such shorter time as designated by the Trading and Markets, pursuant to delegated
mstockstill on DSK4VPTVN1PROD with NOTICES
Commission may designate, if Commission. The Exchange has satisfied this authority.17
consistent with the protection of requirement. Robert W. Errett,
14 17 CFR 240.19b–4(f)(6).
investors and the public interest, the Deputy Secretary.
15 17 CFR 240.19b–4(f)(6)(iii).
proposed rule change has become 16 For purposes only of waiving the 30-day [FR Doc. 2016–09320 Filed 4–21–16; 8:45 am]
operative delay, the Commission has also BILLING CODE 8011–01–P
9 See supra, note 6. considered the proposed rule’s impact on
10 15 U.S.C. 78s(b)(3)(A)(iii). efficiency, competition, and capital formation. See
11 17 CFR 240.19b–4(f)(6). 15 U.S.C. 78c(f). 17 17 CFR 200.30–3(a)(12).
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Document Created: 2017-08-22 23:36:38
Document Modified: 2017-08-22 23:36:38
| 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 23768 |
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